State auditors take names of state-owned enterprises with trillions of losses

Audit results, yes State Audit sent to the National Assembly, showing that: In 2020, in the context of many difficulties and challenges, especially the serious impact and influence of the Covid-19 pandemic, but 15/16 corporations, corporations and companies audited for profitable production and business. However, the management and use of capital and assets of the audited enterprises still have some limitations and shortcomings.

Have money but haven’t spent it

According to the audit results, some units have not yet developed money management regulations, cash balance norms/bank deposits, cash flow use plans or ineffective cash flow management.

In PVGAS, Parent company has not balanced cash flow from deposit contracts to maturity date when developing monthly/quarterly cash flow plan.

The parent company, PetroVietnam Low Pressure Gas Distribution Joint Stock Company, and CNG Vietnam Joint Stock Company let the demand deposit balance exceed the norm, carry forward with the same term many deposit contracts from 3 to 9 months .

PetroVietnam Low Pressure Gas Distribution Joint Stock Company and Vietnam LPG Trading Joint Stock Company have not yet offered interest rates to credit institutions when depositing money.

Parent company – VNS maintaining a high balance of demand deposits (over 63 billion VND/day, over 152 billion VND/day in the period 12/10-28/12/2020), not yet offering interest rates to credit institutions when send money.

In VinachemVan Dien Fused Phosphate Joint Stock Company has not yet established criteria for selecting banks and offering interest rates to credit institutions when depositing money.

There are also a number of construction projects completed for many years that have not yet been accepted and settled. In HUD, HUD 3 Investment and Construction Joint Stock Company is VND 46.64 billion (Bac Ninh Drainage System Project VND 15.98 billion, Quang Trung Mechanical Civil Service Construction Project VND 24.73 billion, Works Infrastructure of Dong Mai Industrial Park cluster 0.32 billion VND, Mixed structure and finishing works of HH1 Chuc Son building 5.61 billion VND)…

Some units have a large balance of Investment and Development Fund but have not yet developed plans and plans to use the Fund. Specifically, at PVGAS, the parent company is 18,597.25 billion VND, PetroVietnam Low Pressure Gas Distribution Joint Stock Company is 178.26 billion VND, CNG Vietnam Joint Stock Company is 131.55 billion VND; Vietnam LPG Trading Joint Stock Company 83.82 billion VND.

Some units are unable to pay their due debts (Parent company – Vinachem); financial imbalance (VNS: Parent company, Thai Nguyen Iron and Steel Joint Stock Company, Phu My Sheet Steel One Member Limited Company – VNSteel) or being placed under special financial supervision (Mien Plate Joint Stock Company). Nam, Phu My Steel Sheet One Member Company Limited – VNSteel, Thai Nguyen Iron and Steel Joint Stock Company, MDC Consulting Company Limited – VNSteel, Viet Trung Minerals and Metallurgy Company Limited, Thong Nhat Sheet Steel Joint Stock Company , Tan Thanh My Joint Stock Company, Natsteelvina Company Limited).

Some investment units are inefficient or low efficiency. Parent company – HUD: dividend rate, expected profit to be divided on invested capital is 4.34%, in which the dividend rate divided from 3 subsidiaries is 2-5%, 4 subsidiaries have low profit without dividend, 1 subsidiary has a loss in business results; (ii) Parent company – Vinachem: the ratio of dividends and profit divided on invested capital is 5.32%, of which 3/22 subsidiaries have low business results and do not pay dividends; (iii) Parent company – VNS: the ratio of dividends and profit divided on invested capital is 4.13%.

Some business units lose money

The State Audit also pointed out many business enterprises losses. Specifically:

In Parent company – Vinachem: 5 of 22 subsidiaries, the accumulated loss as of December 31, 2020 is VND 15,473.64 billion and 1 subsidiary is shutting down.

VNS: Parent company (4 subsidiaries, 5 affiliated companies and 3 other investments with accumulated losses of VND 898.88 billion, of which 2 units are temporarily suspending operations); Thai Nguyen Iron and Steel Joint Stock Company (3 subsidiaries, affiliates are inactive, unable to resume production).

Parent company – PVGAS: 2/6 subsidiaries have accumulated losses of 602.37 billion dong.

Parent company – Petrolimex: Petrolimex Laos One Member Limited Liability Company accumulated a loss of 114.82 billion dong, negative equity of 57 billion dong.

TKV Electricity Corporation: Cam Pha Thermal Power Joint Stock Company has accumulated losses of VND 1,771.1 billion.

According to the State Audit, a number of investments of corporations and corporations in associates and other long-term investments suffered losses and lost capital.

Parent company – PVFCCo: 2/3 of associated companies, the accumulated loss as of December 31, 2020 is VND 6,474.84 billion, 1/2 of other long-term investments’ loss in 2020 is VND 45.47 billion.

Parent company – HUD: 4/5 associated companies, other investments, the loss in 2019 and 2020 is 55.49 billion dong.

Vinachem: Parent company (2/9 associated companies with accumulated loss of VND 123.69 billion), Apatit Vietnam One Member Limited Liability Company (2/5 of investments that must be made provision for VND 95.25 billion), Company Can Tho Fertilizer and Chemical Joint Stock Company (1 investment must make provision for VND 9.83 billion).

Parent company – PVGAS: 1/2 of associate companies’ loss in 2020 is 47.41 billion VND.

Petrolimex: Petrolimex Gas Corporation – JSC (1 clause), Petajico Hanoi – Petrolimex Petroleum Service Corporation (02 items), Petrolimex Petrochemical Corporation – JSC (1 clause), Vipco Petroleum Transport Joint Stock Company – Transportation Corporation Petrolimex ships (4 items) had to make provision for a total of VND 132.37 billion.

Luong Bang

Audit reveals many state-owned enterprises, projects with trillions of losses

The State Audit pointed out that a number of investments of corporations and corporations in affiliated companies and other long-term investments suffered losses and lost capital.