22 state-owned enterprises distribute 350tr dong investment capital in 2011

This figure is nearly equal to the total annual state investments and five times higher than the total capital distribution for entire state-run firms in 2010.

According to the official figures from deputy minister of planning and investment, Cao Viet Sinh, the total investment capital of state-owned firms in 2010 was 70.8 trillion dong, accounting for 8.5 percent of the total social investments and rising 14 percent from 2009′s.

Ministry of Planning and Investment (MoPI)’s recent report on cutting down public investment aiming to tame inflation in accordance with the government’s Decree No 11 showed 22 state-owned corporations and groups distributed 350 trillion dong of development and investment capital, or $17.5 billion in 2011. This figure is five times higher than the total capital for distribution for entire state-run firms in 2010.

According to Central Institution for Economy Management (CIEM), the total social investment on GDP was up to 41.5 percent in 2008 and it was 42.7 percent in 2009 and 41.9 percent in 2010. It can be said that the total investment each year has reached about $42 billion since 2008 when the country’s GDP exceeded the $100 billion threshold.

Also according to CIEM, amongst the total social investment, the total state capital accounted for 33.9 percent in 2008 and it was 40.6 percent in 2009, and 38.1 percent in 2010. It means that yearly, the state capital for investment accounted for 40 percent of $42 billion, equaling to $18.9 billion.

Thus, the investment of 22 state corporations and groups is nearly equal to the investment of the state (including budget, government bonds, and state firms) yearly.

However, a leader from MoPI said that if calculating enough the investment of about 80 other state corporations (currently, there are about 100 state groups and corporations), the investment of this economic zone may be up to $30-40 billion yearly.

At another point, 22 state corporations and group have committed to suspend and relax tempo of more than 39 trillion dong this year. Sinh confirmed that amount of capital “is not the state capital”, which also includes capital from loans companies in other economic sectors.

By the end of April, Vietnam National Oil and Gas Group (PetroVietnam-PVN) also pledged to cut down nearly 6.6 trillion dong in accordance with the government’s decision on cutting down public investments to curb inflation. This is a significant figure against 3.5 trillion dong that PVN received to reinvest and against the group’s total estimated investment of 105 trillion dong for 2011. – Vietbiz24

Posted by VBN on May 16 2011. Filed under Banking-Finance, Enterprises. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry