State-run companies found in steep losses

Three state-run corporations were found to incur losses totaling 1.12 trillion dong (US$56 million) in 2009, Le Minh Khai, Deputy General Auditor of the State Audit Office of Vietnam has said.
At the press meeting held in Hanoi yesterday to announce the 2009 audit report, Khai said except for these three entities, the other state-run corporations subject to the audit – 24 in all – were all enjoying profits.

The three companies were Vietnam Machinery Installation Corporation which suffered from a loss of 103 billion dong; Song Hong Corporation with a 20 billion dong loss, and the Vietnam Post with 1 trillion dong.

SAV said although many state-run corporations were in a good financial state, their subsidiaries had suffered losses or were operating ineffectively, and even those that enjoyed profits didn’t really make the most of their available resources.

SAV also revealed that state spending for sectors including education, profession training and science and technology had all decreased.

Khai was also quoted by the Vietnam News Agency as saying that violations in expense filing were found to be common among state-owned enterprises.

Khai said the allocation of the state budget was also flawed. Some provinces for instance failed to allocate enough in a timely manner to keep pace with projects’ progress while others allocated money improperly.

Khai also told Nguoi Lao Dong newspaper that SAV was also finishing up its audit of the Electricity of Vietnam (EVN) that it started in April as well as the fuel price stabilization fund.

Khai said when the result of this audit would be announced would depend on the General State Auditor Dinh Tien Dung.
Tuoi Tre

Tags: Vietnam companies, Vietnam enterprises, Vietnam SOEs