State-owned corporations and groups may lose $13 billion due to COVID-19

08-Apr-2020 Intellasia | VIR | 6:02 AM Print This Post

If the COVID-19 pandemic continues to last for a long time and the price of oil cannot recover, the revenue of 19 state-owned groups and corporations will see a plunge of VND279.76 trillion ($12.16 billion) this year, and eight of them will suffer a damage of VND26.32 trillion ($1.14 billion), according to the Committee for Management of State Capital at Enterprises.

In the first three months, these 19 firms under the Committee for Management of State Capital at Enterprises reported a total loss of VND3.7 trillion ($160.87 million). The company suffering the largest damage is Vietnam Airlines with a plunge in accumulated revenue reaching VND6.7 trillion ($291.3 million) on-year and loss of VND2.3 trillion ($100 million). If the pandemic lasts until the fourth quarter of this year, its revenue is estimated to decline by VND72.4 trillion ($3.15 billion) compared to its initial target, with VND20 trillion ($869.57 million) in losses.

At present, Vietnam Airlines suspended all international flights and keeps domestic flights at a minimum. It has increased the exploitation of both international and domestic cargo flights in order to offset the lost revenue.

The VND3.5 trillion ($152.2 million) fund allocated for wages has been exhausted and the company had to look for short-term loans to meet payments.

Another case in the aviation sector is Airports Corporation of Vietnam (ACV). In the first quarter, the corporation reported negative VND800 billion ($34.78 million) of revenue and negative VND580 billion ($25.22 million) in profit. ACV forecast VND11.3 trillion ($491.3 million) in revenue and VND1.47 trillion ($63.9 million) in profit for the whole year, down VND10.2 trillion ($443.48 million) and VND9.3 trillion ($404.35 million) on-year.

In the transport sector, VietnamExpressway Development and Investment Corporation (VEC) expressed concerns about losing VND15 billion ($652,200) in revenue in the first three months due to the plunge in transport demand in the context of the pandemic. This damage may increase to VND140 billion ($6 million) if the epidemic lasts until the fourth quarter.

VND100 billion ($4.35 million) was the damage of Vietnam Railways Corporation (VNR) in the first three months. The figure is estimated to rise VND643 billion ($27.96 million) to VND935 billion ($40.65 million) by the end of this year.

Regarding the oil and gas sector, in the first quarter of this year, PetroVietnam saw a decline of VND13.2 trillion ($573.9 million) in revenue and VND4.58 trillion ($199.13 million) in after-tax profit against last year.

If the selling price of crude oil decreases to $55 or $30 per barrel, the total revenue of the group will drop by between VND23 trillion ($1 billion) and VND141 trillion ($6.13 billion).

Meanwhile, Petrolimex is concerned about a potential revenue loss of about VND12.5 trillion ($543.48 million) this year.

Despite the soaring demand for online working and learning due to the pandemic, telecommunications groups the providers of these services have not manged to escape the damage of the pandemic. Notably, VNPT forecast that its revenue may decrease by VND6.1 trillion ($265.2 million) while profit could drop by VND1.52 trillion ($66.1 million) against its initial expectations for the whole year.

https://www.vir.com.vn/state-owned-corporations-and-groups-may-lose-13 billion-due-to-covid-19-75375.html

 


Category: Business, Vietnam

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