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Vietnam: VN giants post record profits

  • Jan 11, 2017

HÀ NỘI – Two giant State-owned corporations, Vietnam National Petroleum Group (Petrolimex) and Vietnam Steel Corporation (VNSTEEL), achieved record profits last year, according to a conference held by the Party Organisation of the Central Enterprises Bloc (CEB) on Monday.

Petrolimex earned more than VNĐ6.2 trillion in profit, reaching 158 per cent of its yearly target, and a return on equity (ROE) rate of 50 per cent. Meanwhile, VNSTEEL was estimated to increase its revenue by 6 per cent to touch VNĐ18.3 trillion, making pre-tax profit of VNĐ600 billion, a year-on-year rise of 108 per cent.

CEB reported that the revenue of its 33 corporations and groups was estimated at VNĐ1.429 quadrillion (US$63.15 billion) last year, 92.8 per cent of the previous year. Of which, over VNĐ195 trillion was sent to the State budget, equal to 87 per cent compared with 2015.

Earnings of Việt Nam National Oil and Gas Group (PVN) were reported to have dropped due to decreased oil price. It’s estimated to have reached VNĐ440 trillion in revenue and VNĐ24.2 trillion in pre-tax profits in 2016. The group is expected to send VNĐ86 trillion to the State budget, 74.7 per cent of the figure in 2015.

Although the bloc’s revenue dropped, there were still effective operations of businesses in service areas such as Vietnam Post and Telecommunications Group, Vietcombank, State Capital Investment Corporation, Vietnam Airlines, Petrolimex and VNPost.

Speaking at the conference, Chairman of the Party Central Committee’s Commission for Economic Affairs Nguyễn Văn Bình required the CEB’s staff, Party members and workers to resolve the shortcomings of last year, including low results of business and production; a number of investment projects were ineffective or incurred big losses; backward technology; and weaknesses in corporate administration, divestment of the State capital and restructuring.

Bình said the State businesses were a key part of the State economy, playing an important role in the country’s development. Therefore, it is necessary to continue affirming their key role in the State economy, ensuring the most effective results in operation, production and business. — VNS

Source: http://vietnamnews.vn/economy/349524/vn-giants-post-record-profits.html#4oddFM1uMh0rm0rt.99