Many economic experts predict that great difficulties will continue to put pressure on Vietnam’s growth target in the coming months. And now all three main “engine blocks” of the economy, namely State-owned enterprises, FDI and private enterprises, are in a difficult position, especially the private sector.
According to reports from ministries, branches and localities, as of December 31, 2021, the whole country has 826 enterprises with State-contributed capital, of which 673 are state-owned enterprises and 153 enterprises have shares and capital. State contribution. Total assets are more than 3.7 million billion VND, up 2% compared to 2020. Equity is 1,795,451 billion VND, up 3% compared to 2020. Total revenue reached 2,128,254 billion VND, up 8% compared to 2020.
State-owned enterprises have not developed commensurately…
Currently, the total liabilities of State-owned enterprises is more than VND 1.9 million billion, equivalent to 2020. In which, short-term debts account for 53% of the total liabilities of central enterprises.
According to the Ministry of Finance, the group of corporations, corporations and companies operating under the model of parent company – subsidiary companies have total assets of nearly 3.4 million billion VND, accounting for 90% of total assets of enterprises. Karma; total revenue from the consolidated report reached more than VND 1.5 million billion, up 9% compared to 2020.
Corporations, corporations, parent-subsidiary companies with large total revenue are mainly concentrated in large-scale enterprises such as Vietnam Electricity (VND 440,000 billion); Vietnam National Oil and Gas Group (VND 380,000 billion); Military Telecom Industry Group (VND 150,000 billion); Vietnam Coal-Mineral Industry Group (114,000 billion VND)…
Pre-tax profit of corporations, corporations, parent companies – subsidiaries reached VND 186,371 billion, an increase of 31% compared to 2020, accounting for 91% of the total profit arising before tax of enterprises. The units with high pre-tax profits of over 5,000 billion dong are mainly still in large-scale corporations and corporations, such as: Vietnam National Oil and Gas Group (VND 52,000 billion); Military Telecommunications Group (VND 37,000 billion); Vietnam Electricity (VND 18,000 billion)…
According to the Government’s assessment, the performance of state-owned enterprises is not commensurate with the resources they hold. Some projects have large but unsuccessful investment capital, high risks, and ineffective restructuring methods…
In 2021, many businesses start to recover and develop again, some parent companies have a total revenue increase of over 30% compared to 2020 such as: Vietnam Chemical Group (up 156%); Economic Cooperation Corporation (87%); Engineering and Production Application One Member Company Limited (77%); Expressway Development Investment Corporation increased (66%)…
A number of enterprises with pre-tax profit in 2021 decreased sharply, such as: Parent company – Vietnam Paper Corporation has a pre-tax profit of 1 billion dong, corresponding to a decrease of 90%; Parent company – Hanoi Transport Corporation has a pre-tax profit of VND 1.5 billion, equivalent to a decrease of 90% (decreased revenue leads to a decrease in pre-tax profit); Parent company – Housing and Urban Development Investment Corporation (HUD) has a pre-tax profit of VND 163 billion, equivalent to a decrease of 52%, revenue down 42% compared to 2020…
There are 90/826 enterprises (accounting for 11% of total enterprises) having incurred losses with a total loss of 16,064 billion VND. 184/826 enterprises (accounting for 22% of total enterprises) and accumulated losses with a total accumulated loss of 52,840 billion dong. In which, the Vietnam Chemical Group has accumulated losses of more than 3,000 billion dong; Vietnam Railways Corporation lost nearly 2,000 billion VND; Hanoi Tourism Corporation lost 69 billion VND…
FDI enterprises report constant losses
In the report of the Ministry of Finance evaluating the production and business results of FDI enterprises in 2021, just published on December 28, 2022, despite the growth, this business sector has not shown any signs of improvement. confidence. According to statistics, total assets, equity, and revenue all increased by double digits compared to 2020. Especially profit after tax reached VND 83,585 billion, up 29.6% compared to 2020.
The industry with the largest profit contribution is the processing and manufacturing industry; real estate business; warehouse transportation; production and distribution of electricity, gas, hot water, steam and air-conditioning…
However, the amount of liabilities of FDI enterprises in 2021 also increased by 14.7% compared to 2020, to 5.261 million billion dong. Some sectors have large debt-to-equity ratios, such as media, which are above four times; financial, banking and insurance activities is 3.85 times; production and distribution of electricity, gas, hot water, steam and air conditioning is 2.93 times.
According to VCCI, besides positive contributions, FDI projects have many limitations. There are many cases of FDI enterprises transferring prices and evading taxes. Some other businesses ignore regulations on the legal environment…
In particular, in 2021, the whole country has more than 14,200 FDI enterprises reporting losses, accounting for 55% of the total number of enterprises, an increase of 11% compared to 2020. The total loss value is more than 168,000 billion VND. The number of enterprises with accumulated losses was more than 16,000, accounting for 62% of the total number of FDI enterprises, an increase of 8% compared to the previous year. There are more than 4,400 businesses losing equity, up 15% compared to 2020.
According to the Ministry of Finance, although the size of assets increased, the growth rate of liabilities was higher than the growth rate of equity. This shows that the expansion of assets comes from more debt than from the investor’s capital. Growth in capital of FDI enterprises mainly comes from external funding. Profitability indicators of some fields are still negative and have not been improved.
The amount paid to the state budget of FDI enterprises is not commensurate with the total investment. The number of FDI enterprises reporting losses, accumulated losses and capital losses tended to increase in both quantity and value of losses. Products exported by foreign investors are mainly processed and assembled goods, low added value, labor intensive, low technology, low localization rate.
Need more support for private businesses
Over the years, despite the difficulties caused by Covid-19, Vietnam’s private business sector is still showing a remarkable growth rate. But despite accounting for more than 97% of enterprises, contributing 45% of GDP and 31% of state budget revenue, private enterprises in Vietnam are still not treated equally with State-owned enterprises and the FDI sector.
In many economic forums, experts have pointed out that it is very difficult for private enterprises to access preferential loans to have enough resources for stable and long-term development.
Recently, the Private Economic Development Research Board (Board IV), under the Advisory Council for Administrative Procedure Reform, summarized and reported to the Prime Minister on the biggest challenges faced by businesses in the past months. end of 2022 and beginning of 2023.
Accordingly, on the basis of reflections from businesses and associations from the second half of October until now, Board IV has sent reports to the Prime Minister on a number of major barriers and challenges that directly affect the ability to recovery and sustainable development of businesses and the economy.
Currently, enterprises in most industries believe that import and export activities in the second half of the fourth quarter of 2022 and the beginning of 2023 will face many difficulties.
Market opportunities and orders for 2023 with many key export industries all decreased seriously, especially in the textile, garment, leather and footwear industries, furniture, industrial aluminum, iron and steel, cement… enterprises had to cut workers and reduce production scale in the last months of 2022.
Input costs for export production in Vietnam are high and tend to continue to increase, reducing the competitiveness of enterprises in international markets. The USD/VND exchange rate increased sharply; Rising interest rates increase the cost of production capital of many Vietnamese enterprises…
In order to support the recovery efforts of enterprises, especially domestic private enterprises in the context that enterprises face great difficulties in cash flow, Board IV proposes the Government to consider extending it until the end of the year. In 2023, a number of policies to support businesses have been brought into play during the pandemic, such as the policy of 2% value-added tax reduction, the policy of extending/postponing the application of the new land rental tariff according to Decree No. 96/2019/ND-CP of the Government; credit policies such as rescheduling debt repayment, keeping the debt group unchanged…