Ministry wants to transfer 11 SOEs to CMSC, SCIC

Saturday, Aug 26, 2023 10:59

Production at Habeco. The Ministry of Industry and Trade proposed 11 SOEs to be handed over to CMSC. — VNA/VNS Photo

The Ministry of Industry and Trade proposed 11 State-owned enterprises (SOEs) in which the ministry represented the State ownership to be handed over to the Commission for the Management of State Capital at Enterprises (CMSC) and the State Capital Investment Corporation (SCIC) at the same time and in their status quo in 2022-25.

The proposal was raised in the ministry’s recent report to the Government about the supervision on the conversion of State-wholly-owned enterprises into joint stock companies.

The ministry wanted to handover all 11 SOEs at the same time and in their status quo to avoid the situation that only efficient SOEs were received while inefficient ones were rejected, the ministry said.

The 11 SOEs included Việt Nam Motors and Agricultural Machinery Corporation (VEAM), Hanoi Beer Alcohol And Beverage Joint Stock Corporation (Habeco), Việt Nam Paper Corporation (Vinapaco), Machines and Industrial Equipment Corporation (MIE), Việt Nam Industrial Construction Corporation (Vinaincon), General Construction and Export – Import Joint Stock Company, Việt Nam Agricultural Products Joint Stock Company, Investment, Construction and Building Materials Joint Stock Company, BMCC Commercial Construction and Building Materials One Member Limited Liability Company, Việt Nam Textile Research Institute Joint Stock Company, and Industrial Machinery and Instruments Holding.

The ministry’s report showed that among 11 above SOEs, many had huge revenues and profits, reaching up to trillions of Vietnamese đồng per year.

Specifically, VEAM which had a charter capital of VNĐ13.288 trillion (US$563 million) and a State stake of 88.47 per cent reported a profit of more than VNĐ6.1 trillion in the second quarter of this year, up 33.3 per cent against the same period and an after-tax profit of VNĐ6.071 trillion, up 33.2 per cent. VEAM was considered a “golden goose” which reported an after-tax profit of more than VNĐ56 trillion in 2022, 25 per cent higher than the plan.

Habeco reported an after-tax profit of VNĐ184.6 billion in the first half of this year.

However, some companies were not very efficient, the ministry said.

For example, Vinapaco earned a revenue of more than VNĐ2.7 trillion but the after-tax profit was modest, just VNĐ10.33 billion, in 2022.

Vinaincon reported a revenue of VNĐ254.9 billion, only 64 per cent of the plan in 2022, while the profit was just VNĐ14.7 billion and the liabilities up to VNĐ181.2 billion.

MIE earned a very modest profit of just VNĐ105 million in 2022.

Currently 19 corporations were under the management of CMSC, including SCIC, Việt Nam Oil and Gas Group, Việt Nam Electricity, Việt Nam National Petroleum Group. — VNS

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