Basically, SOEs have completed their production and business tasks. Photo: PVN

Some parent companies have total revenue increasing by over 50% in 2022

The report said that compiled from ministries, branches, and localities, as of December 31, 2022, the whole country had 827 enterprises with State capital contribution, of which 478 were State-owned enterprises with 100 % of charter capital, 198 enterprises were held by the State over 50% of charter capital, 151 enterprises are held by the State from 50% of charter capital or less.

Accordingly, the total assets of 827 SOEs reached over VND 3.92 million billion, an increase of 4% compared to 2021. Equity is over VND 1.84 million billion, an increase of 3%; Total revenue reached over VND 2.75 million billion, an increase of 29%; Pre-tax profits reached VND 247.9 trillion, an increase of 23%; State budget contributions reached more than VND 391.5 trillion, an increase of 21% compared to 2021.

Summary of the financial situation and results of production and business activities in 2022 of 676 enterprises with 100% State holding and over 50% of charter capital show that total assets are over VND 3.82 million billion, an increase of 4% compared to 2021. Equity reached over VND 1.8 million billion, an increase of 3%; the total value of state capital being invested in SOEs is more than VND 1.7 million billion, an increase of 3% compared to 2021.

In 2022, the total revenue of the above 676 enterprises will reach VND 2.64 million billion, an increase of 29% compared to 2021. Pre-tax profits will reach more than VND 241.1 trillion, an increase of 24% compared to 2021. The submitted State budget is more than VND 382.9 trillion, an increase of 21% compared to the previous year.

Total liabilities are more than VND 1.98 million billion, an increase of 6% compared to 2021, of which short-term debt accounts for 55% of the total liabilities of SOEs.

Regarding the financial situation and business results of the block of 77 corporations, state-owned corporations, parent companies - subsidiaries with 100% charter capital held by the State, the total assets of this block reached over VND 2, 84 million billion VND, an increase of 4% compared to 2021; Bad debts are more than VND 41.8 trillion, an increase of 4%, accounting for 10% of total receivables.

In terms of capital, these 77 enterprises have liabilities of more than VND 1.43 million billion, an increase of 4% compared to 2021, accounting for 51% of total capital, of which, debt (short-term and long-term loans) from domestic commercial banks and credit institutions is VND 443.3 trillion, an increase of 3% compared to 2021.

There are 3 parent companies that mobilize capital through issuing domestic corporate bonds. The cumulative value of corporate bonds issued as of December 31, 2022, is VND 5.39 trillion.

The report also stated that 6/77 parent companies were determined to have not been able to preserve equity (the enterprise had accumulated losses after setting up risk provisions according to regulations and the owner's investment capital of ownership is less than equity).

However, the Government's report said that in 2022, after being heavily affected by the pandemic, the big state-owned enterprises have revived and developed again, and some parent companies have increased total revenue by over 50% compared to 2021.

Accordingly, the total revenue of these 77 enterprises reached over VND 1.87 million billion, an increase of 23% compared to 2021; Pre-tax profit reached over VND 186.8 trillion, an increase of 22% compared to 2021. But there are still 19 corporations, corporations, and parent companies with accumulated losses of more than VND 27 trillion and 8 parent companies cumulatively losses of more than VND 31.8 trillion

SOEs are still weak in industries, but help improve the competitiveness of the economy

With the above results, the Government's report assesses that, basically, SOEs have completed their production and business tasks. Total revenue, profit, budget payment, the value of implemented development investment capital, and the average income of employees increased. Some corporations and corporations achieve large export turnover.

In addition, state-owned enterprises, with a focus on corporations and corporations, have played an important role in the economy, being the leading and key enterprises in production fields, for example, playing a large role in ensuring national energy security such as Vietnam Electricity Group (EVN), Vietnam Oil and Gas Group (PVN), Vietnam Coal and Mineral Industry Group (TKV)...

In the telecommunications sector, Viettel, VNPT, and Mobifone have clearly demonstrated their leading role in digital transformation, building digital infrastructure for Government agencies and many localities, organizations, and businesses.

Some SOEs have built reputable brands of products, goods, and services that have great influence in the region and internationally in many fields such as transportation services (Vietnam Airlines), seaports and logistics (Saigon New Port), rubber...

However, the report also frankly points out many shortcomings and limit ations of SOEs such as not clearly demonstrating a prominent role in leading, motivating, and promoting value-added chain links. SOEs are still weak in industries that affect the competitiveness of the economy such as high technology, and industries that can lead economic structural transformation such as manufacturing components, machinery, and finished equipment for manufacturing industries, source technology...

Along with that, operational efficiency is not commensurate with the resources held. Some investment projects are still behind schedule; the long-term settlement of capital construction projects reduces the efficiency of resource use.

The work of building and implementing plans for equitization and divestment of state capital at enterprises has not received serious attention; The finalization of equitization has not been seriously implemented and is still being delayed in some enterprises after equitization, which leads to slow progress in implementing equitization and divestment, not meeting the proposed plan requirements, affecting the progress and revenue from equitization and divestment of the entire period.

Regarding solutions, the Government said it will comprehensively amend Law No. 69/2014/QH13 to complete and build a legal framework for management and investment of state capital in enterprises, synchronizing the process and content of amendments to the Bidding Law, Land Law beside improving the operational efficiency and arrangement of SOEs...