State-owned enterprises’ overseas investments face losses

17-Oct-2020 Intellasia | DTI News | 6:02 AM Print This Post

Up to 47 overseas investment projects by Vietnam’s state-owned enterprises (SOEs) incurred losses of around USD1 billion by the end of last year.

The government has sent a report on state-owned capital use and management to the National Assembly.

According to the report, by late December last year, 27 SOEs had invested in 130 projects abroad, focusing mostly in the areas of telecommunications, petroleum, health and aviation.

Ten of 27 Vietnamese SOEs had recouped USD2.98 billion, or 45.72 percent of their total investment capital from their overseas projects. Among those, PetroVietnam recouped some USD2 billion, followed by Viettel with USD810 million.

In 2019 alone, 53 projects reported a combined profit of USD565 million, up USD39 million against 2018.

By the end of last year, 47 overseas investment projects of Vietnamese SOEs saw total losses of USD1.048 billion.

The report indicated that common reasons behind the underperformance was Vietnam’s limited ability in market forecasting, management capability, financial capacity and experience in making overseas investments.

http://dtinews.vn/en/news/018/70447/state-owned-enterprises overseas-investments-face-losses.html

 


Category: Business, Vietnam

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