Differing fortunes for state players

Businesses active in the petroleum illustration photo

The party committee of the centrally-governed business sector has released 2011’s January-August draft report reviewing production and trading activities of state groups, corporations and banks.

The report read that businesses active in the agricultural and petroleum sectors shined, meanwhile those operating in transport and construction areas scored poorly.

PetroVietnam was the best performer in terms of profit margins and tax payment. Its employees posted an average income of VND16.2 million ($780) per capita per month.

Other profit-running firms were the Vietnam Rubber Group (VRG), Vietnam National Textile Garment Corporation (Vinatex), Vietnam Coffee Corporation and state commercial banks with an average growth of 15-20 per cent in profit margins.

Of the sector’s 31 businesses, four incurred losses, Electricity of Vietnam (EVN) with estimated losses of VND11.67 trillion ($563.7 million), Vinashin lost VND3.092 trillion ($149.37 million), Vietnam Petroleum Export Import Corporation an estimated VND1.2 trillion (full-year) ($57.97 million) and Vinalines around VND613 billion ($29.6 million), according to Dan Tri newswire.

Of them, EVN’s aggregated losses as of June 30, 2011 mounted to VND31.56 trillion ($1.52 billion), including 2010 losses of VND23.647 trillion ($1.14 billion) and 2011 first half losses of VND7.918 trillion (382.5 million).

Labourers’ average incomes were also strongly divided amid firms’ divergent business performances. While the employees at PetroVietnam reported average per capita monthly wages of VND16.2 million ($780) and those at banking behemoths VietinBank and Vietcombank got VND15-18 million ($720-$870) per month, average monthly wages at Vietnam Coffee Corporation were VND2.3 million ($110), at Vinashin VND3.5 million ($169) and at Vinatex VND3.7 million ($179).

The report also showed that investment in non-core businesses was commonplace among state groups and corporations with 21 out of 31 units running such outside investments. Investment into non-core areas of these units has exceeded VND22.6 trillion ($1.09 billion) in the first eight months.

Six firms with outside investments exceeded VND1 trillion ($48.3 million) including PetroVietnam which took the lead with VND6.690 trillion or $323.2 million (3.76 per cent of its chartered capital), VRG with VND3.7 trillion or $178.7 million (19.8 per cent of chartered capital) and EVN with VND2.1 trillion or $101.4 million (2.8 per cent of chartered capital).

Financial, banking and insurance were most attractive investment areas with 13 firms capturing over VND10.7 trillion ($516.9 million) with VND5.636 trillion ($272.2 million) coming from PetroVietnam.

The securities area attracted around VND1.3 trillion ($62.8 million) investment from 13 firms. Eight firms poured over VND3.754 trillion ($181.3 million) into property, industrial zones and construction areas with top player VRG with VND1.5 trillion ($72.4 million).