Passengers board a train leaving a station in the northern city of Vinh. The VNR reported a pre-tax profit of VNĐ143.9 billion in the first eight months of 2023, an increase of 193.7 per cent compared to the same period last year. — VNA/VNS Photo

HÀ NỘI — There has been progress made with business management and operation of state-owned enterprises (SOEs) during the first eight months of 2023, according to the latest report by the Ministry of Planning and Investment (MPI).

The report estimated the SOEs' total revenue at VNĐ1,136.621 trillion (US$46.73 billion) or 71 per cent of the annual target, and 102 per cent compared to the same period last year. 

The Vietnam Oil and Gas Group - PVN led the pack at VNĐ350.5 trillion, 84.7 per cent of the annual target and 94.4 per cent compared to the same period last year; Vietnam Electricity (EVN) at VNĐ250 trillion, 109 per cent compared to the same period last year; Vietnam National Petroleum Group (Petrolimex) at VNĐ169 trillion, 88.9 per cent of the annual target and 84 per cent compared to the same period last year; the Vietnam National Coal-Mineral Industries Group (TKV) at VNĐ112.1 trillion, 66 per cent of the annual target and 101 per cent compared to the same period last year.

Total pre-tax profit reached VNĐ27.1 trillion, 72 per cent of the annual target and 133 per cent compared to the same period last year.

Most profitable SOEs were ranked as follows: PVN with VNĐ35.89 trillion, 103.3 per cent of the annual target; Airports Corporation of Vietnam (ACV) with VNĐ6.53 trillion; State Capital Investment Corporation (SCIC) with VNĐ5.29 trillion, 94 per cent of the annual target; Petrolimex with VNĐ3 trillion, 92.9 per cent of the annual target.

On the other hand, some SOEs have been found struggling to cut losses such as EVN and Vietnam Airlines.

Most improved SOEs included the Vietnam Railways Corporation (VNR), which has produced significantly better business performance compared to the same figures the previous year. The VNR reported a pre-tax profit of VNĐ143.9 billion in the first eight months of 2023, 139.6 per cent of the annual target and 193.7 per cent compared to the same period last year.

In last month's meeting of VNR executives, the corporation said an increase in popularity among train passengers was the main revenue drive in 2023. The corporation said ticket sales had increased by 83 per cent compared to the same period last year. 

VNR's Chairman of the Board Đặng Sỹ Mạnh said VNR had been in the process of setting up additional short tracks, adjusting the number of cars available for each track, upgrading services and comforts for passengers. 

Measures had also been taken to reduce waiting time and introduce VNR-sponsored products. Most notably, the corporation had started implementing flexible ticket sales, based on the number of passengers and time of departure, which had been getting positive feedback from customers. 

The report said 5 out of 19 SOEs managed to increase their contributions to the state budget during the same period including the SCIC, the TKV, the Vietnam Coffee Corporation, the Northern Food Corporation, and the Southern Food Corporation.

"A number of difficulties and challenges have resulted in some SOEs, including key players such as the EVN and Vietnam Airlines, underperforming and incurring financial losses.", said the Management of State Capital at Enterprises (CMSC) in a statement. 

Meanwhile, 82 enterprises under the management of the Ministry of Defence, accounting for 17 per cent of the total 478 state-owned enterprises with 100 per cent state capital ownership, were classified as "relatively stable".

These enterprises, as of August 30, reported a total revenue of VNĐ196.9 trillion, 62.3 per cent of the annual target, with pre-tax profit estimated at VNĐ38.25 trillion. 

The MPI has issued several advisories to SOEs with investment projects falling behind schedule, prolonged construction or have been found wanting in the efficient use of resources. 

"Failures today to generate additional business capacity will lead to limit ed contributions to the economy in the next five years," said the ministry in a statement.