Vietnam giants post record profits

VNSTEEL was estimated to have increased its revenue by 6 per cent to touch 18.3 trillion VND, making pre-tax profit of 600 billion VND, a year-on-year rise of 108 percent.

Hanoi (VNA) - Two giant State-owned corporations, Vietnam National Petroleum Group (Petrolimex) and Vietnam Steel Corporation (VNSTEEL), achieved record profits last year, according to a conference held by the Party Organisation of the Central Enterprises Bloc (CEB).

Petrolimex earned more than 6.2 trillion VND in profit, reaching 158 percent of its yearly target, and a return on equity (ROE) rate of 50 percent. Meanwhile, VNSTEEL was estimated to increase its revenue by 6 percent to touch 18.3 trillion VND, making pre-tax profit of 600 billion VND, a year-on-year rise of 108 percent.

CEB reported that the revenue of its 33 corporations and groups was estimated at 1.429 quadrillion VND (63.15 billion USD) last year, 92.8 percent of the previous year. Of which, over 195 trillion VND was sent to the State budget, equal to 87 percent compared with 2015.

Earnings of the Vietnam National Oil and Gas Group (PetroVietnam) were reported to have dropped due to decreased oil price. It’s estimated to have reached 440 trillion VND in revenue and 24.2 trillion VND in pre-tax profits in 2016. The group is expected to send 86 trillion VND to the State budget, 74.7 percent of the figure in 2015.

Although the bloc’s revenue dropped, there were still effective operations of businesses in service areas such as Vietnam Post and Telecommunications Group, Vietcombank, State Capital Investment Corporation, Vietnam Airlines, Petrolimex and VNPost.

Speaking at the conference, Chairman of the Party Central Committee’s Commission for Economic Affairs Nguyen Van Binh required the CEB’s staff, Party members and workers to resolve the shortcomings of last year, including low results of business and production; a number of investment projects were ineffective or incurred big losses; backward technology; and weaknesses in corporate administration, divestment of the State capital and restructuring.

Bình said the State businesses were a key part of the State economy, playing an important role in the country’s development. Therefore, it is necessary to continue affirming their key role in the State economy, ensuring the most effective results in operation, production and business.-VNA