Jan 5, 2012

Vietnam - Electricity and petroleum industries seek price increases in 2012



The Electricity of Vietnam (EVN) and Vietnam Petroleum Corporation (Petrolimex) reported their achievements and sought price increases instead of explaining issues on business losses and profits at the conference to launch 2012 industry and trade missions held on Jan 3 in Hanoi.

Bui Ngoc Bao, Chairman of Petrolimex explained that in 2011, price impacts seemed to be stable but it was the year with a lot of sudden changes in petrol prices. Despite crude oil price was lower, imported product prices jumped to the record high. Compared with 2008, the price of diesel surged 40% while that of gasoline soared 17% in 2011.

2011 was the first year with the least number of times to adjust petrol prices, he added. There should have been over 11 new petrol price adjustments to catch market prices, but factually the number was 3 times only.

Total business revenue of Petrolimex last year reached 177 trillion dong, state budgetary contribution at 24 trillion dong, loss of 2.5 trillion dong (the loss from forex rate spread accounted for 1.5 trillion dong). However, the firm’s pre-tax profit has not been announced because of a number of other reasons.

So, Bao said, oil is estimated at $97 a barrel in 2012, equaling to 2011 but price pressure will likely increase. Regarding business, Petrolimex proposed Ministry of Finance’s approval to take account in line with the whole industry instead of the independent accounting between the holding company and affiliates.

Meanwhile, Pham Le Thanh—General Director of EVN emphasized that his firm fulfilled the electricity supply plan and invested over 63 trillion dong in new power sources, subsidize more than 400 billion dong to the poor households. He also proposed to apply electricity price adjustments to call for investment without elaboration on average income of 13.7 million dong/month per EVN employee as posted recently by the press.

At the conference, Prime Minister Nguyen Tan Dung requested Minister of Industry and Trade Vu Huy Hoang to have direct talk with people about the trade of electricity and petroleum and disclose electricity and petrol prices, losses and profits of two giants.

As reported by Ministry of Industry and Trade, the monthly average income of SOEs under the ministry in 2010 and 2011 was hereafter: 8.3 million dong and 8.6 million dong respectively at EVN, 7.5 million and 7.7 million dong at Vinacomin, 15.1 million dong and 16.2 million dong at PetroVietnam, 9.8 million dong (in both 2010 and 2011) at Sabeco.

In other SOEs, the employee income ranged between 3 and 6 million dong per month.

VietBiz24



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