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State-owned enterprises face VND3.7 trillion loss in Q1 due to COVID-19

Update: 09-04-2020 | 19:09:12

Nineteen State-owned groups and corporations under the Commission for the Management of State Capital at Enterprises (CMSC) incurred losses worth more than VND3.7 trillion in the first quarter of this year due to the impacts of the COVID-19 pandemic.

According to a recent CMSC report sent to Prime Minister Nguyen Xuan Phuc, the total revenue of the 19 State groups and corporations fell an estimated VND27.3 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 VND270 trillion lower than plans for the full year, the report said. In addition, eight of them would suffer losses worth more than VND26.3 trillion and the sum contributed to the State budget would be VND32.8 trillion lower than planned.

The CMSC pointed out that Vietnam Airlines Corporation was among those suffering the most from the pandemic, reporting a drop of VND6.7 trillion in revenue in Q1 and a loss of VND2.3 trillion.

If the COVID-19 pandemic continued to the last quarter of this year, the corporation’s revenue was estimated to lose VND72.4 trillion and its losses would amount to nearly VND20 trillion.

The corporation 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 VND3.5 trillion.

It has asked for Government support in terms of a loan package worth VND12 trillion to help ensure the corporation’s solvency.

The Airports Corporation of (ACV) also saw a drop of VND800 billion in revenue and VND580 billion in profit in Q1 over the same period last year. It forecast revenue of VND11.3 trillion for the full year and a profit of VND1.46 trillion, VND10.2 trillion and VND9.3 trillion lower than its targets, respectively.

Revenue at the Vietnam Expressway Corporation was estimated to fall by VND15 billion in Q1 due to less travel. The corporation forecast a loss of VND140 billion if COVID-19 did not end until the fourth quarter.

The Vietnam Railway Corporation also suffered a loss of VND100 billion in the first quarter. The loss could increase to nearly VND900 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 VND27.3 trillion.

If the COVID-19 pandemic continues and oil prices do not recover, PVN’s revenue would see a decline of VND279.76 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 VND250 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.

VNS/VNA

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