State-owned enterprises face 3.7-trillion-VND loss in Q1 due to COVID-19

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 27.3 trillion VND 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 270 trillion VND lower than plans for the full year, the report said. In addition, eight of them would suffer losses worth more than 26.3 trillion VND and the sum contributed to the State budget would be 32.8 trillion VND lower than planned. The CMSC pointed out that Vietnam Airlines Corporation was among those suffering the most from the pandemic, reporting a drop of 6.7 trillion VND in revenue in Q1 and a loss of 2.3 trillion VND. If the COVID-19 pandemic continued to the last quarter of this year, the corporation's revenue was estimated to lose 72.4 trillion VND and its losses would amount to nearly 20 trillion VND. 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 3.5 trillion VND. It has asked for Government support in terms of a loan package worth 12 trillion VND to help ensure the corporation's solvency. The Airports Corporation of (ACV) also saw a drop of 800 billion VND in revenue and VNĐ580 billion in profit in Q1 over the same period last year. It forecast revenue of 11.3 trillion VND for the full year and a profit of 1.46 trillion VND, 10.2 trillion VND and 9.3 trillion VND lower than its targets, respectively. Revenue at the Vietnam Expressway Corporation was estimated to fall by 15 billion VND in Q1 due to less travel. The corporation forecast a loss of 140 billion VND if COVID-19 did not end until the fourth quarter. The Vietnam Railway Corporation also suffered a loss of 100 billion VND in the first quarter. The loss could increase to nearly 900 billion VND 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 27.3 trillion VND. If the COVID-19 pandemic continues and oil prices do not recover, PVN's revenue would see a decline of 279.76 trillion VND 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 250 trillion VND. 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.

(Source: VNA)