State-owned enterprises adjusting end-of-year business plans

	Studying, and amending mechanisms, policies to accelerate equitization of enterprises
	Removing difficulties for delayed projects of state-owned enterprises
	PM chairs meeting to seek solutions to improve State-owned enterprises" performance

Offshore wind turbine base manufacturing site of Petrovietnam Technical Services Corporation (PTSC). Photo: Petrovietnam

By the end of 2022, Vietnam had about 478 State-owned enterprises (SOEs) with 100% charter capital held by the State, and around 198 SOEs with controlling stakes held by the State. As of June 30, 2023, the total revenue of SOEs nationwide reached nearly VND690 trillion, achieving 50% of the 2023 plan. The pre-tax profit generated was VND67.4 trillion. Total taxes and contributions to the State budget amounted to VND67.233 trillion, achieving 56% of the 2023 plan.

For the entire year 2023, the SOE sector is expected to achieve a total revenue of over VND1.4 quadrillion, an increase of 4% compared to the set target. The pre-tax profit is estimated to reach over VND 117.3 trillion, an increase of 9% compared to the set target. Total taxes and contributions to the State budget are projected to be nearly VND129 trillion, a 7% increase compared to the plan.

However, according to experts and businesses, amid the challenging business environment due to the impact of the Russia-Ukraine conflict and global economic uncertainties, SOEs are making significant efforts to ensure that they meet the set targets. These efforts aim to maintain macroeconomic stability and balance in the national economy.

For example, the Vietnam Oil and Gas Group (Petrovietnam) faced numerous challenges in its business operations over the past nine months. Key challenges included low gas supply and gas-fired electricity production, and high petroleum imports affecting domestic consumption amid a weak demand environment, resulting in increased inventory. The cost of petroleum products decreased by 18-22% during the first nine months of the year compared to the same period in 2022. Natural gas reserves in oil and gas fields decreased after extensive exploitation, while the opportunities for new investments were limited. Exchange rate fluctuations negatively affected business operations.

However, Petrovietnam managed to exceed its nine-month plan in all aspects by closely monitoring market developments and implementing effective management solutions. For instance, the group achieved a total revenue of approximately VND643.2 trillion, exceeding the nine-month plan by 26% and equaling 95% of the annual plan. It contributed an estimated VND102.4 trillion to the State budget, surpassing the annual plan of VND78.3 trillion by five months. The consolidated pre-tax profit of the group was estimated at VND42.5 trillion, surpassing the annual plan by 22%.

Nevertheless, Petrovietnam acknowledged the increased challenges in the market in the coming months. The company has called on its units to focus on production and safety, increase extraction to compensate for declining production, and adjust the structure of petroleum products in line with market demand. It aims to expand its market share in the upstream sector and strengthen capital management, cash flow analysis, and risk control, particularly regarding financial fluctuations.

At the Vietnam Chemical Group (Vinachem), Nguyen Huu Tu, Deputy General Director, mentioned that recently, the market has been experiencing positive developments due to a favorable season and higher prices. Thus, the corporation has formulated scenarios to capitalize on these growth opportunities. To address financial and production challenges, Vinachem actively engaged with banks to resolve financial issues. They also established connections with local authorities to receive support for their operations, and production and collaborated with other businesses under the State Capital Management Committee to ensure the market for their products.

Furthermore, Le Quang Trung, Deputy General Director of the Vietnam Maritime Corporation (VIMC), shared that during the challenging economic and maritime sector conditions, with the support of the "super committee," VIMC successfully negotiated with banks to restructure loans of over US$100 million, bringing financial profits of nearly VND1,500 billion.

Trung also noted that consumer goods demand was not high at present, so VIMC is making extra efforts to find appropriate solutions to develop three main pillars: developing, improving, and upgrading the port system, such as in the Lach Huyen area (Hai Phong), or in the Central region, with the goal of shifting Da Nang port to the Lien Chieu port area. Furthermore, VIMA is developing a "green" sea transport system and digital platforms to provide additional services to its customers.

State-owned enterprise (SOE) Vietnam National Coal-Mineral Industries Group (TKV) and its affiliated units have also put in substantial efforts to meet their targets. In the final months of the year, TKV's leadership instructed units to remain highly focused on production, ensure labor safety, achieve production and business plan targets for 2023, and prepare well for the 2024 production and business plan. The revenue for the first nine months of TKV is estimated to be over VND127 trillion, achieving 75% of the annual plan. In Q4 2023, TKV is set to produce 8.5 million tons of coal to achieve the annual plan of 37.2 million tons. They will import 3.6 million tons of coal and consume 11.5 million tons to reach 48 million tons of coal for the whole year.

It is evident that SOEs are concentrating on the year-end production peak, not only to meet their set targets but also to fulfill their roles and responsibilities in serving the national business community and the overall economy.

In a conclusion statement at a nationwide conference with SOEs on promoting production, business, and investment development, SOEs were urged to maximize their resources (with assets totaling VND3.8 quadrillion, contributing 29% to the nation's GDP) and focus on development across all sectors, leading, pioneering, and contributing to business growth and economic development. SOEs are expected to lead in innovation and creativity, enhance competitive capacity, focus on digital transformation, green conversion, circular and sharing economies, and emerging industries, and contribute to the nation's sustainable development.