Some places have huge profits, some places have losses of tens of thousands of billions.

EVN suffered heavy losses in the first 8 months of 2023, so many people are worried about the possibility of electricity price increases in the near future. Photo: EVN

Contrasting financial picture of some "big" state-owned enterprises

According to a report by the Ministry of Planning and Investment, by the end of 2022, Vietnam will have about 478 enterprises in which the State holds 100% of charter capital and about 198 enterprises in which the State holds controlling shares.

The report of the Ministry of Planning and Investment on the consolidated business results of 8 months of 19 corporations and general companies that are state-owned enterprises shows that the total revenue is estimated at 781,973 billion VND (equal to 114% of the yearly plan and up 5% over the same period).

Some enterprises with large total revenue, such as Vietnam Oil and Gas Group (PVN), Vietnam National Coal and Mineral Industries Group (TKV), Vietnam National Petroleum Group (Petrolimex). Enterprises with pre-tax profit of more than 3,000 billion VND, include: PVN, State Capital Investment Corporation (SCIC), Vietnam Airports Corporation (ACV), Vietnam Chemical Group (Vinachem).

PVN is one of the state-owned corporations with huge profits in the first 8 months of 2023. Photo: Nguyen Long

Total state budget contribution is estimated at 50,994 billion VND (equal to 126% of the annual plan and 111% compared to the same period). Enterprises contributing to the state budget are large such as Petrolimex, Southern Food Corporation, PVN, TKV, SCIC...

However, there are also some businesses with heavy losses such as Vietnam Electricity Group (EVN), losing tens of thousands of billions of VND, Vietnam Airlines losing more than 4,500 billion VND.

Notably, Vietnam Railways Corporation has had positive changes compared to previous years, with pre-tax profit reaching VND 143.9 billion (equal to 139.6% of the annual plan, equal to 193.7% compared to the same period in 2022).

"Due to objective difficulties, some corporations and general companies have negative profits, including large-scale enterprises with important roles (EVN, Vietnam Airlines,...), significantly affecting the total profits of the corporations and general companies," the State Capital Management Committee at Enterprises assessed.

Explaining EVN's huge loss

Talking to Lao Dong Newspaper about the financial situation of Vietnam Electricity Group (EVN), a representative of this group said that according to financial reports, in the first 8 months of 2023, EVN is expected to lose more than 28,700 billion VND. Thus, together with the loss of 26,500 billion VND in 2022, up to now, the parent company EVN has lost a total of about 55,000 billion VND.

The reason why EVN continued to suffer large losses in the first 8 months of 2023 was due to business below cost; input fuel prices increased sharply in the first few months of 2023 (although decreased compared to 2022).

Speaking with Lao Dong, Mr. Tran Viet Hoa - Director of the Electricity Regulatory Authority (Ministry of Industry and Trade) said that currently, the price of fuel for electricity production is still unfavorable for the electricity industry, although it has decreased compared to 2022, but the price is still high compared to previous years.

Specifically, the average imported coal price in the first 6 months of 2023 is about 210 USD/ton, lower than the average in 2022 (about 360 USD/ton), but still much higher than the average in 2019 - 2021 (about 92 USD/ton). The world HSFO oil price used to determine the market gas price in the first 6 months of 2023 is about 423 USD/ton, lower than in 2022 (522 USD/ton), but still much higher than the average in 2019 - 2021 (about 344 USD/ton).

"High fuel prices continue to affect electricity purchase costs in 2023.

Especially in the first 6 months of 2023, the weather was hot, the load increased, and at the same time, hydrology encountered many disadvantages, so the electricity output from hydropower plants was low, leading to the system having to mobilize maximum thermal power plants (coal, gas and oil)," said Mr. Tran Viet Hoa.

Talking about solutions to help EVN move towards financial balance, the Director of the Electricity Regulatory Authority said that in the past and present, EVN has implemented many solutions to contribute to financial balance such as launching a nationwide electricity saving movement and solutions on electricity saving.

"However, the above solutions are only supportive. To ensure financial balance, the most important thing is to reduce fuel prices sold for electricity from domestic suppliers, optimally mobilize power generation sources, use electricity economically and effectively, and allow electricity price adjustments to recover costs that have not been fully included in electricity prices," he said.

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