Vietnam's leaders are calling on all state-owned groups and corporations
to increase their production and business goals to meet the government'
economic growth targets.
At a recent meeting with
state-owned enterprises (SOEs) in Hanoi, Prime Minister Nguyen Tan Dung ordered
all corporations and groups (CGs) to make greatest efforts to revise their
production and investment plans to achieve an overall growth rate of all CGs of
10 per cent for 2013 over 2012.
"Each group and corporation
must ensure operational effectiveness in 2013," he said.
His order sharply contrasts with
early forecasts of some prominent SOEs that are forecast decreasing revenues
and profits in stubbornly sluggish economy. "This means that our economic
target [5.5 per cent growth] will fail. So you must revise your targets,"
Dung told CGs.
The Ministry of Planning and
Investment (MPI) has reported that this year, 73 wholly state-owned CGs were
expecting an average 4 per cent reduction in revenues, and their pre-tax profit
and contributions to the state coffers would each slash 21 per cent, against
last year.
For example, PetroVietnam
estimated its revenue, profit and contribution to the state budget will slide
25, 39 and 23 per cent, respectively, against 2012.
Le Minh Chuan, general director
of Vietnam National Coal and Mineral Industries Corporation (Vinacomin) said
Vinacomin expected a decrease of 15 and 20 per cent in revenue and profit,
respectively, for this year.
"Vinacomin faced too many
difficulties in 2012, including a 10 per cent reduction in revenue, and 15-20
per cent reductions in coal consumption and coal prices in the market,"
Chuan said.
"Vinacomin's output markets
are expected to continue with difficulties," he said. " The
corporation's customers have asked us to continue paring down prices of coal
for this year. Additionally, Vinacomnin is also finding it difficult in
mobilising capital."
Meanwhile, Vietnam Post and
Telecommunications Group and Vietnam Rubber Group also forecast declines in
revenue and profit, leading to their decreased contributions to the state
budget, at 3 and 10 per cent respectively, against last year.
"Thus, the visible declines
in revenue, profit and contributions to the state coffers of CGs in 2013 will
have a negative impact on the economy as a whole," the report said.
Dung said CGs' expected low
fruits would cause a budget deficit this year and harm the country's economic
growth.
Last year, total pre-tax profit
of Vietnam's nine state-run economic groups and 94 state-owned corporations,
which have yet to be reshuffled, reached at $6.13 billion, down 5 per cent from
the previous year. Their total contribution to the state budget was $14.1
billion, down 12 per cent on-year.
But Dung argued: "Your
losses can be due to objective reasons, but you [CGs] must seriously reform
your administration soon. Are your losses due to your weak capacity or your
breaking of the law?"
At present, CGs are creating
nearly 30 per cent of Vietnam's gross domestic product and 39 per cent of the
country's total industrial production value. They are also employing 1.2
million local workers with an average monthly income of $168.2-$240.3.
Khoi Nguyen | vir.com.vn
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