Ministry of Finance has completed the financial inspection of 90 enterprises across the country. The results show that most of the large-scale enterprises are having losses from several dozens to several hundreds of billions of dong.
The enterprises reported losses are in different sectors such as goods distribution, supermarkets, transportation, construction, healthcare, gas, fertiliser, and foods, etc.
In HCM City, according to results of the inspection of 21 enterprises, only three units are profitable, including Nguyen Kim Trading Joint Stock Company, Union of Transportation Agencies (Gemadept) and HCM City Union of Trading Cooperative. Most of the remaining enterprises are suffering losses. Among them, three enterprises are at loss from 150 to 179 billion dong. For example, a foreign retail distributor with a chain of eight supermarkets capitalised at $120 million reported loss of up to 190 billion dong in 2008 and 154 billion dong in 2009.
Inspection results in Dong Nai and Binh Duong provinces also show that all 25 inspected enterprises are at loss. Of that, FDI firms have the biggest loss. There are FDI firms reporting loss of nearly 600 billion dong in three consecutive years (2007-2009).
In Hanoi, according to Ministry of Finance, through inspecting 19 enterprises, only Big C Thang Long Supermarket Services and International Trade Company Limited, an FDI firm, has positive profit. The few enterprises inspected in some provinces and cities such as Can Tho (two units), Da Nang (two units), Binh Thuan (one unit), etc. are all suffering losses, usually in two to three consecutive years.
Some domestic enterprises explained that the reason is due to the difficult economic situation and high lending rate.
However, there are questions on the losses of FDI firms.
This large-scale inspection was conducted by Ministry of Finance after many parliament members concerned that whether the losses are true. minister of Finance Vu Van Ninh agreed that many FDI firms have found to report losses in order to transfer profits to the parent companies overseas.
Talking to VnExpress in the afternoon of 31 March, leader of Ministry of Finance said that since the inspection of 90 enterprises has just ended, the assessment on the actual situation and comments on the truth of the losses has not been completed. This leader said that figures of each enterprise have been looked at carefully and views of the ministry would be published openly.
In 2009, there were 1,358 FDI firms operating in Vietnam. However, 56 percent of them reported losses. In fact, these firms have parent companies abroad and 99 percent of the produced items were exported to the third countries.