80 percent of State-owned economic groups earn profits

Up to 80 percent of the 19 State-owned economic groups and corporations under the management of the Committee for Management of State Capital at Enterprises (CMSC) earned profits in the first half of this year, fulfilling more than half of their yearly targets, according to the committee.

Illustrative image (Photo: VNA)

Illustrative image (Photo: VNA)

It said after receiving the groups and corporations from the Government and some ministries and agencies, it had separate working sessions with them to learn about their production and business, as well as their difficulties and proposals, thus optimizing capital and resources handed over by the State. 

Nguyen Hoang Anh, CMSC President, said since its inception, the committee has been aware of its role in supervising, controlling and implementing State capital ownership, compiling and issuing development policies and strategies and serving as a bridge between State-owned enterprises (SOEs) and legislative agencies. 

Anh described these enterprises as economic locomotives that contribute to regulating and orienting sectors in each period of time in a reasonable way, and realising the targets of socio-economic and business development.

CMSC Vice President Ho Sy Hung said between January and June, the committee continued to consolidate its organizational structure and staff, and perfect its internal management regulations.

It also ensured the administrative work and performed its functions, tasks and rights as a State ownership representative towards the above-mentioned groups and corporates, he added. 

Regarding the restructuring, equitisation and State capital divestment, Hung said the committee has coordinated with competent agencies to remove bottlenecks during the process. However, the work remains sluggish.

Hung noted that among the 19 enterprises, 16 earned profits, five fulfilled 50 percent of yearly revenue targets, seven completed 50 percent of pre-tax revenue targets and four reached 50 percent of state budget contribution targets.  

To achieve targets set for the last six months of the year, he suggested the committee focus on consolidating its organizational apparatus and staff, and closely coordinate with relevant agencies, groups and corporations in business administration, State investment capital and financial supervision, restructuring, equitisation, State capital divestment and initial public offering.

The CMSC, known as the “super committee”, made its debut in Hanoi on September 30, 2018.

The 19 groups and corporates under its management include the Vietnam National Oil and Gas Group (PetroVietnam), Vietnam Electricity (EVN), Vietnam National Coal and Minerals Holding Group (Vinacomin), Vietnam Post and Telecommunication Group (VNPT), MobiFone, Vietnam Airlines, Airport Corporation of Vietnam (ACV), Vietnam Railway, Vietnam Expressway Corporation (VEC), Vietnam National Shipping Lines (Vinalines), Vietnam National Petroleum Group (Petrolimex), Vietnam National Chemical Group (Vinachem), Vietnam National Tobacco Corporation (Vinataba), Vietnam Rubber Group (VRG), Vietnam National Coffee Corporation (Vinacafe), Vietnam Forest Corporation (Vinafor), Vietnam Northern Food Corporation (Vinafood 1), Vietnam Southern Food Corporation (Vinafood 2) and State Capital Investment Corporation (SCIC).

According to consolidated financial statements by December 31, 2017, the total value of State equity at the 19 groups and corporations topped VND 1 quadrillion (US$43 billion) and the total value of assets was VND 2.3 quadrillion ($99 billion).

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