Most State-owned enterprises (SOEs) were operating at a profit but still needed to improve their operational efficiency, according to a report by the State Audit Office of Vietnam (SAV).

Illustrative image (Source: Internet)

In 2018, the SAV audited financial reports and the use of State capital at 253 enterprises under 31 State-owned corporations.

The audits found that 30 out of 31 State-owned corporations made a profit in 2017 and contributed significantly to the State budget.

However, the SAV revealed a number of errors in accounting at SOEs and said there was 467.8 million USD in outstanding taxes and fees.

The report also revealed inefficiencies in the operation of SOEs.

Loose management of debts resulted in rising overdue receivables, for example 510 billion VND (21.7 million USD) at MobiFone Corporation, 547 billion VND at Vietnam Electricity and 1.9 trillion VND at Song Da Corporation, according to the report.

At the Vietnam National Oil and Gas Group (PetroVietnam), bad debts amounted to 11.36 trillion VND. PetroVietnam’s overseas investments were also found to have been inefficient and risky, according to the report.

The SAV said that 24 oil and gas exploration had been successful and cost 773 million USD. The value of investment transferred abroad by PetroVietnam even exceeded the limits on the investment certificates for some projects.

Land assigned to SOEs was also found to have not been strictly managed, with areas left deserted and some used for the wrong purposes, causing significant waste.

Auditing results also pointed out that some SOEs were heavily dependent on banking credit, which implied financial risks, and some had used loans for improper purposes.

The SAV’s report also said that the privatisation and State capital divestment in 2017 had been stagnant.

The audits also found problems in the implementation of 15 build-transfer and build-operate-transfer projects, causing significant losses to the State.