Economic groups and corporations increase revenue and profit

Many financial and business targets of state-owned enterprises have been basically completed. Photo: PVN

No high-risk investment projects have arisen

According to the report on the work of the first 6 months of 2024 of the State Capital Management Committee at enterprises, 19 economics groups and corporations have completed their production and business tasks; total revenue, profit, budget payment, value of implemented development investment capital and average income of employees have increased; some economics groups and corporations have achieved large import-export turnover; no high-risk investment projects have arisen which causes large losses, loss of state capital… thereby becoming an important tool to stabilize the macro economy, cope with market fluctuations, control inflation…

Regarding the implementation of financial targets of parent companies, in the first 6 months of 2024, revenue is estimated at nearly VND 647,807 billion, equal to 54.4% of the annual plan and 112% over the same period; pre-tax profit is estimated at VND 11,425 billion, equal to 43.5% of the annual plan. Regarding the consolidated financial situation (parent company - subsidiaries), revenue is estimated at nearly VND 1.02 million billion, equal to 76.28% of the annual plan and 113% over the same period; pre-tax profit is estimated at nearly VND 56,875 billion, equal to 127% of the annual plan and 127% over the same period; value paid to the state budget is estimated at nearly VND 86,218 billion, equal to 75.24% of the annual plan and 91% over the same period. In particular, many production and service items of state-owned enterprises achieved positive results in the first half of the year. For example, the output of commercial coal is estimated at 27.36 million tons, equal to 53% of the annual plan and 111% compared to the same period last year; the exploitation is estimated at 1,630 hectares, equal to 61% of the annual plan and 182% compared to the same period; the rice output of Vinafood 1 is estimated at over 1.125 million tons of rice, equal to 78% of the annual plan and 141% compared to the same period;

Regarding services, in the maritime sector, the output of goods passing through ports is estimated at 71 million tons, equal to 58% of the annual plan and 137% compared to the same period; Railway freight transport is estimated at more than 2.5 million tons, equal to 115% over the same period; total road toll revenue (excluding VAT) reached VND 2,906 billion, equal to 53.92% of the plan 2024, up 21% over the same period in 2023...

Many challenges remain

Regarding the business performance, Mr. Le Ngoc Son, Member of the Board of Directors, General Director of the Vietnam Oil and Gas Group (Petrovietnam), said that in the context of the domestic economy facing many difficulties in the past time, the international energy market had had rapid and unfavourable fluctuations compared to the same period in 2023, Petrovietnam had focused on synchronously implementing solutions, improving governance to have response solutions.

According to information from Petrovietnam, most financial indicators exceeded the plan, maintaining a higher growth rate compared to the previous month, although the prices of Petrovietnam's key products, especially the petrochemical profit margin, decreased by 24.9% compared to the same period in 2023, greatly affecting the performance of the petrochemical refining sector. Subsidiaries all exceeded the 6-month plan by 20-77% and grew strongly compared to the same period in 2023. Total revenue of the Group in the first 6 months of 2024 was estimated at VND 482.3 trillion, an increase of 15% over the same period in 2023. The total State budget contribution of the Group was estimated at VND 71.1 trillion, an increase of 9% over the same period in 2023.

At Vietnam National Coal - Mineral Industries Group (TKV), in the first 6 months of 2024, TKV has basically completed financial targets. Total revenue of the Group is estimated at VND 88,672 billion, reaching 50.6% of the annual plan, equal to 106.2% over the same period; expected profit is estimated at VND 2,280 billion, equal to 52% of the annual plan; State budget contribution is estimated at VND 13,350 billion, equal to 52.4% of the annual plan.

Vietnam Rubber Industry Group (VRG) recorded consolidated revenue in the first 6 months of 2024, reaching VND 10,092 billion, up 5.7% over the same period last year; consolidated pre-tax profit reached VND 1,909 billion, up 4.3% over the same period in 2023; the entire Group's state budget payment was expected VND 967 billion.

However, according to the assessment of the State Capital Management Committee at Enterprises, some corporations and groups have not achieved some of the planned targets assigned by the Committee; some investment projects are still behind schedule in implementation and disbursement; restructuring, equitization, divestment, and rearrangement of houses and land are generally slower than required... This difficulty is due to the unpredictable international situation, which has a negative impact on society and the economy, leading to many difficulties for enterprises; the import and export markets of some enterprises are affected, export orders have decreased sharply or tend to stagnate...

Representatives of state-owned enterprises also commented that the situation in the last 6 months of 2024 was forecasted to be difficult, and enterprises would be affected by macroeconomic impacts and face many risks and challenges. Therefore, enterprises said they would do governance well and synchronously deploy groups of solutions on governance, market, finance, investment and policy mechanisms to strive to achieve the highest production and business targets assigned in 2024.