State-owned enterprises face VNĐ3.7 trillion loss in Q1 due to COVID-19
Nineteen State-owned groups and corporations under the Commission for the Management of State Capital at Enterprises (CMSC) incurred losses worth more than VNĐ3.7 trillion (US$160 million) in the first quarter of this year due to the impacts of the COVID-19 pandemic.
Passengers landing at Nội Bài International Airport make health declarations. The COVID-19 pandemic is hitting many enterprises hard. - VNA/VNS Photo Doãn Tấn
According to a recent CMSC report sent to Prime Minister Nguyễn Xuân Phúc, the total revenue of the 19 State groups and corporations fell an estimated VNĐ27.3 trillion in Q1 compared to the same period last year.
If the pandemic continued and oil prices did not recover, their total revenue in 2020 would be VNĐ270 trillion lower than plans for the full year, the report said. In addition, eight of them would suffer losses worth more than VNĐ26.3 trillion and the sum contributed to the State budget would be VNĐ32.8 trillion lower than planned.
The CMSC pointed out that Vietnam Airlines Corporation (VNA) was among those suffering the most from the pandemic, reporting a drop of VNĐ6.7 trillion in revenue in Q1 and a loss of VNĐ2.3 trillion.
If the COVID-19 pandemic continued to the last quarter of this year, VNA’s revenue was estimated to lose VNĐ72.4 trillion and its losses would amount to nearly VNĐ20 trillion.
The VNA has suspended all international routes and is only operating domestic routes at a minimum level while increasing operation of cargo flights to facilitate trade and increase revenue.
The corporation was also thirsty for cash and must increase short-term loans which were estimated to amount to VNĐ3.5 trillion.
The VNA has asked for Government support in terms of a loan package worth VNĐ12 trillion to help ensure the corporation’s solvency.
Vietnam Airports Corporation (AVC) also saw a drop of VNĐ800 billion in revenue and VNĐ580 billion in profit in Q1 over the same period last year. AVC forecast revenue of VNĐ11.3 trillion for the full year and a profit of VNĐ1.46 trillion, VNĐ10.2 trillion and VNĐ9.3 trillion lower than its targets, respectively.
Revenue at the Vietnam Expressway Corporation was estimated to fall by VNĐ15 billion in Q1 due to less travel. The corporation forecast a loss of VNĐ140 billion if COVID-19 did not end until the fourth quarter.
The Vietnam Railway Corporation also suffered a loss of VNĐ100 billion in the first quarter. The loss could increase to nearly VNĐ900 billion for the full year.
The Vietnam Oil and Gas Group (PVN) has also suffered heavily from COVID-19 and the tumbling oil prices. In the first three months of this year, PVN’s revenue fell by VNĐ27.3 trillion.
If the COVID-19 pandemic continues and oil prices do not recover, PVN’s revenue would see a decline of VNĐ279.76 trillion compared to its target.
The CMSC has asked the State Bank of Vietnam to provide instructions for State groups and corporations to access a credit package worth VNĐ250 trillion. It also urged the Ministry of Finance to allow postponements for tax and land use fee payments to support businesses.
State groups and corporations must come up with solutions to diversify sources for production input as well as export markets, the CSMC said. In addition, it urged its groups and corporations to ensure adequate supplies of power, fuel and food as well as smooth transportation services.
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