State-owned enterprises post 23% profit growth

By Anh Minh   October 4, 2023 | 06:22 pm PT
State-owned enterprises post 23% profit growth
An employee updates gasoline prices at a station of state-owned Petrolimex in Ho Chi Minh City. Photo by VnExpress/Thanh Tung
827 state-owned enterprises saw pre-tax profits surging 23% year-on-year to VND2.4 trillion ($98.23 million) last year.

Their revenues rose 29% to VND2.64 quadrillion, according to a government report submitted recently to the National Assembly.

These companies account for around 7% of assets of all businesses in the country and 10% of equity.

9% of them posted a combined loss of VND29.46 trillion, including Vietnam Airlines and Vietnam Electricity.

State-owned enterprises’ combined debts rose 6% to VND1.98 quadrillion.

The government pointed out that state-owned enterprises remained weak in boosting the competition of the economy, such as developing hi-tech sectors such as manufacturing complicated parts and machines.

Although these companies have large resources, their efficiency does not go in tandem. Some projects have been report losses for years.

State-owned enterprises contribute around 29% of GDP, but this ratio will not likely to increase in the next five years, the government said.

The government is making changes to regulations so that state-owned enterprises will act as funds that invest its money into businesses instead of directly operating them.

New regulations will also urge them to participate in high-tech sectors that can help them branch out overseas.

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