State-run firms grow slowly

State-owned enterprises reported a slow growth rate in revenues and pre-tax profits last year while the nation plans to restructure all enterprises in the sector by July 1.

“Many State-run groups and corporations continued to grow but at slower rates than previous years,” said the Steering Committee for Enterprise Renovation and Development in a meeting with 100 groups and corporations in Hanoi on Wednesday.

Last year, revenue of the State-owned sector inched up only 2.9% against the previous year, of which 19 groups and 91 corporations increased 2.7%. Vietnam Steel Corporation and Northern Food Corporation reached just 90% of their 2009 revenue targets.

The sector also reported a low profit margin of 15.45% in which the enterprises mentioned above reached 18.19%. The debt to equity ratio of the sector was 3:1 last year.

Over 1,500 State-run firms are regulated to become joint stock companies or one member limited firms before the deadline under the Corporate Law. They are set to run as 100% State-owned one member enterprises given the slow equitization process this year.

Tags: Vietnam companies, Vietnam enterprise, Vietnam State-run firms

Posted by VBN on Mar 12 2010. Filed under Enterprises. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry