Passengers landing at Noi Bai International Airport make health declarations. The COVID-19 pandemic is hitting many enterprises hard (Photo: VNA) Hanoi (VNS/VNA) - Nineteen State-owned groups and corporations underthe Commission for the Management of State Capital at Enterprises (CMSC)incurred losses worth more than 3.7 trillion VND (160 million USD) in the firstquarter of this year due to the impacts of the COVID-19 pandemic.
According to a recent CMSC report sent to Prime Minister Nguyen Xuan Phuc, thetotal revenue of the 19 State groups and corporations fell an estimated 27.3trillion VND in Q1 compared to the same period last year.
If the pandemic continued and oil prices did not recover, their total revenuein 2020 would be 270 trillion VND lower than plans for the full year, thereport said. In addition, eight of them would suffer losses worth more than 26.3trillion VND and the sum contributed to the State budget would be 32.8 trillionVND lower than planned.
The CMSC pointed out that Vietnam Airlines Corporation was among thosesuffering the most from the pandemic, reporting a drop of 6.7 trillion VND inrevenue in Q1 and a loss of 2.3 trillion VND.
If the COVID-19 pandemic continued to the last quarter of this year, the corporation’srevenue was estimated to lose 72.4 trillion VND and its losses would amount tonearly 20 trillion VND.
The corporation has suspended all international routes and is only operatingdomestic routes at a minimum level while increasing operation of cargo flightsto facilitate trade and increase revenue.
The corporation was also thirsty for cash and must increase short-term loanswhich were estimated to amount to 3.5 trillion VND.
It has asked for Government support in terms of a loan package worth 12trillion VND to help ensure the corporation’s solvency.
The Airports Corporation of (ACV) also saw a drop of 800 billion VND in revenueand VNĐ580 billion in profit in Q1 over the same period last year. It forecastrevenue of 11.3 trillion VND for the full year and a profit of 1.46 trillionVND, 10.2 trillion VND and 9.3 trillion VND lower than its targets,respectively.
Revenue at the Vietnam Expressway Corporation was estimated to fall by 15billion VND in Q1 due to less travel. The corporation forecast a loss of 140billion VND if COVID-19 did not end until the fourth quarter.
The Vietnam Railway Corporation also suffered a loss of 100 billion VND in thefirst quarter. The loss could increase to nearly 900 billion VND for the fullyear.
The Vietnam Oil and Gas Group (PVN) has also suffered heavily from COVID-19 andthe tumbling oil prices. In the first three months of this year, PVN’s revenuefell by 27.3 trillion VND.
If the COVID-19 pandemic continues and oil prices do not recover, PVN’s revenuewould see a decline of 279.76 trillion VND compared to its target.
The CMSC has asked the State Bank of Vietnam to provide instructions for Stategroups and corporations to access a credit package worth 250 trillion VND. Italso urged the Ministry of Finance to allow postponements for tax and land usefee payments to support businesses.
State groups and corporations must come up with solutions to diversify sourcesfor production input as well as export markets, the CSMC said. In addition, iturged its groups and corporations to ensure adequate supplies of power, fueland food as well as smooth transportation services./.
VNA
