The central government reported to lawmakers Tuesday that many state-owned enterprises (SOEs) finished last year with multi-million dollar losses.
The revenue of Vietnam's 91 SOEs for 2011 exceeded VND1,577 trillion (US$75.7 billion), a 25.1 percent increase over 2010, of which the pretax profits totaled VND135 trillion ($6.5 billion).
However, Electricity of Vietnam (EVN), Vietnam National Petroleum Group (Petrolimex), Vietnam National Shipping Lines (Vinalines), Vietnam Waterway Construction Corporation (Vinawaco) and Military Petroleum Corporation (Mipecorp)"”five of the biggest SOEs"”lost a total of VND5.8 trillion ($278 million).
For losses incurred in 2011, Petrolimex topped the list with VND2.17 trillion and brought their accumulated losses to VND2.93 trillion. Vinalines followed with incurred loss VND857 billion and have accumulated losses of VND5.73 trillion.
In 2011, SOEs' receivables were VND296.5 trillion, an increase of 13.8 percent over 2010, of which VND3.7 trillion was bad debt.
The companies' total assets were valued VND2,093 trillion and their capital was VND727.2 trillion.
"Generally, the companies have maintained capital," the government said in the report. "However, some companies have failed to do so"¦ like the Vietnam Sericulture Corporation (Viseri) that has a capital lower than its accumulated losses of VND281 billion, Vinawaco of VND604 billion."
The report blamed the losses on the global economic downturn.
"Vietnam has significantly suffered from this downturn, including in the financial and stock markets, and the [relevant] companies have faced many difficulties withdrawing capital," it said.
In July, the Prime Minister Nguyen Tan Dung approved a project to restructure SOEs, which required them to withdraw investment from non-core businesses by 2015.