State-owned firms to see profits plunge courtesy of pandemic

By Quynh Trang   October 13, 2020 | 08:30 pm PT
State-owned firms to see profits plunge courtesy of pandemic
Medical staff sanitize a Vietnam Airlines aircraft at Noi Bai International Airport in Hanoi on February 4, 2020. Photo by VnExpress/Ngoc Thanh.
Pre-tax profits of 55 state-owned companies are set to decline by more than 45 percent this year due to Covid-19 impacts.

A government report, which puts the total figure at VND78 trillion ($3.36 billion), also estimates a decline of nearly 10 percent in revenues to VND1,300 trillion.

Several major state-owned corporations have posted big losses in the first half of this year.

The Vietnam National Chemical Group (Vinachem) recorded a loss of over VND1 trillion in the first six months and it could see an additional loss of VND500 billion in the third quarter.

National flag carrier Vietnam Airlines has forecast a loss of VND16 trillion this year and expects the loss-making to continue until 2024.

For several decades now, the government has tried to step up what it calls equitization of state-owned enterprises. It has targeted privatizing 128 companies in the 2017-2020 period, but divestment has only happened with 37 companies to date.

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