Big firms crying for capital shortage

Petrolimex lost 2.650 trillion dong because of forex rate difference, including a loss of more than 1.850 trillion dong due to the State Bank of Vietnam’s latest forext rate increase on February 11, it reported on April 4 when the online handing-over conference was held by the Ministry of Industry and Trade.

So Petrolimex’s leaders asked the government’s permission in purchasing US dollar (as needed) according to a fixed foreign exchange rate.

Previously, Vinashin Group continuously sent documents to ask loans at an interest rate of 0% to pay salaries to its employees. In addition, the shipbuilder also asked tax incentives in a year for null contracts till the end of December 2012. The asking of supports is avoidable amid Vinashin is undergoing restructure process.

Economists said the fact that state giants took the reason of capital shortage or difficulties in input materials to ask preferential mechanisms was normal. Every time EVN proposed a rise in electricity price, it also offered the losses of up to trillions of dong to remark that the price increase was force majeure. Even as electricity price was raised by 15.28% sharply from March 1, the electricity sector still confirmed the adjustment was not enough.

Earlier, Vietnam National Coal and Minerals Group or Vinacomin recommended an increase in coal price to the government with the reason that they sold coal to EVN at lower cost prices and had to offset 3 trillion dong. Therefore, the group wanted to sell products at market prices. If not increase prices, the coal industry will see a huge loss of 5.8 trillion dong, 30,000 employees are under threat of unemployment.

Analysts criticized that the government’s attitude was not definitive. In this context, the government needs to categorize support objectives who should be small to medium sized enterprises.

The government agreed to extend CIT for SMEs, and super sized firms to 1 year, which is estimated to amount to 7 trillion dong. – Vietbiz24

Tags: capital shortage