MoIT proposes transfer of 11 State-owned enterprises to CMSC, SCIC
|Currently 19 corporations were under the management of CMSC. (Source: VNA)|
The proposal was raised in the ministry’s recent report to the Government about the supervision on the conversion of State-wholly-owned enterprises into joint stock companies.
The ministry wanted to handover all 11 SOEs at the same time and in their status quo to avoid the situation that only efficient SOEs were received while inefficient ones were rejected, the ministry said.
The 11 SOEs include Vietnam Motors and Agricultural Machinery Corporation (VEAM); Hanoi Beer Alcohol And Beverage Joint Stock Corporation (Habeco); Vietnam Paper Corporation (Vinapaco), Machines and Industrial Equipment Corporation (MIE); Vietnam Industrial Construction Corporation (Vinaincon); General Construction and Export – Import Joint Stock Company; Vietnam Agricultural Products Joint Stock Company; Investment, Construction and Building Materials Joint Stock Company, BMC Commercial Construction and Building Materials One Member Limited Liability Company; Vietnam Textile Research Institute Joint Stock Company; and Industrial Machinery and Instruments Holding.
The ministry’s report showed that among the 11 above SOEs, many had huge revenues and profits, reaching up to trillions of VND per year.
Specifically, VEAM which had a charter capital of 13.288 trillion VND (563 million USD) and a State stake of 88.47% reported a profit of more than 6.1 trillion VND in the second quarter of this year, up 33.3% against the same period and an after-tax profit of 6.071 trillion VND, up 33.2%. VEAM was considered a “golden goose” which reported an after-tax profit of more than 56 trillion VND in 2022, 25% higher than the plan.
Habeco reported an after-tax profit of 184.6 billion VND in the first half of this year.
However, some companies were not very efficient, the ministry said.
For example, Vinapaco earned a revenue of more than 2.7 trillion VND but the after-tax profit was modest, just 10.33 billion VND in 2022.
Vinaincon reported a revenue of 254.9 billion VND, only 64% of the plan in 2022, while the profit was just 14.7 billion VND and the liabilities up to 181.2 billion VND.
MIE earned a very modest profit of just 105 million VND in 2022.
Currently 19 corporations were under the management of CMSC, including SCIC, Vietnam Oil and Gas Group, Vietnam Electricity, Vietnam National Petroleum Group.