Debts of Vietnamese State-run enterprises surpass $71 bn

Friday, Nov 28, 2014 18:24

PetroVietnam's debt of $136 million puts the enterprise on the top of the list of enterprises with huge bad debts. — Photo

HA NOI (Biz Hub) – The total debts of State-run groups and corporations surpassed VND 1,500 trillion (US$71 billion), of which bad debts made up VND10.329 trillion ($470 million), the Vneconomy business news site said.

The news site quoted the Government's latest report on the financial status of State-owned corporations and businesses in fiscal year 2013 which Finance Minister Dinh Tien Dung prepared.

PetroVietnam topped the list of State-run businesses with the largest amount of bad debts with VND2,856 billion ($136 million), followed by Vietnam National Coal-Mineral Industries Holding Corporation Ltd. with VND 890 billion ($42 million) and Vietnam Airlines, the national flag carrier, with VND678 billion ($32 million).

The report also specified State-run businesses with bad debts that accounted for a large percentage of their total debts. Vietnam Motor Industry Corporation's bad debts reached VND11 billion ($523,000) or 59 per cent of the corporation's total debt, while that of Vietnam National Tea Corporation reached VND29.187 billion ($1.38 million), or 59 per cent of its total debt.

The report also revealed that domestic debts made up more than 43 per cent of total debts. State-owned enterprises owe local banks and credit organisations a total of VND489,260 billion ($23 billion) and their foreign debt is VND325,936 billion ($15.5 billion).

On foreign debts, the State-owned enterprises' short-term debts reached VND36,150 billion ($1.7 billion) while their long-term debts reached VND289,758 billion ($13.79 billion).

Of these foreign debts, the enterprises re-borrow the Government's official development assistance worth VND125,061 billion ($5.95 billion) and borrow another VND122,543 billion under the Government's guarantee.

The report concluded that State-run enterprises relied mostly on foreign debts to fund their operational expenses and continued to face difficulties.

According to the report, by end-2013, the State held 100 per cent of capital in exactly 796 businesses, of which eight were economic groups and 100 were corporations, excluding Shipbuilding Industries Corporation.

The report also showed that State-run businesses' total assets in 2013 reached VND2,869,120 trillion ($136.6 billion), a 12-per cent year-on-year increase, while ownership capital reached VND1,145,564 trillion ($54.5 billion), a 15-per cent year-on-year increase.

The businesses' contribution to the State budget reached VND276,063 billion ($13 billion), a 23-per cent year-on-year increase.

The enterprises' total revenues in 2013 reached VND1,709,134 trillion ($81.38 billion), of which VND899,184 billion ($42.8 billion) came from eight groups, representing an eight-per cent year-on-year increase for these groups.

The report also reviewed the enterprises' investments in non-core areas. They invested VND957 billion ($45.57 million) in stocks, VND549 billion ($26 million) in capital funds, VND1,498 trillion ($71 million) in insurance, VND16,101 billion ($766 million) in finance and VND13,176 billion ($627 million) in real estate.

These investments accounted for 3.38 per cent of ownership capital or 1.33 per cent of total assets, the report explained.

By end-September the enterprises had divested VND2,300 trillion ($109 million) from non-core businesses. — VNS

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