Đăng ngày: 28/05/2013

 State-owned firms are requesting government help to pay foreign debts

Since 2010, the laws has stated that debts incurred by state-owned enterprises are not the responsibility of the government. However, in fact, many SOE's that have suffered losses have received financial support from the government.

In 2010, SOEs' foreign debts guaranteed by the government accounted for 14.3% of the country's total foreign debts.

When Vietnam began economic reform in 1986, over 50% of banking resources went to state-owned sector. Though the rate has gone down in recent years, it is still around 30%.

The financial advantages enjoyed by SOEs also means that they are more highly leveraged than other firms. The ratio of debt to equity in the SOEs in 2009 was 2.52, 1.78 times higher than private firms and 1.39 times higher than FDI companies.

The report also showed that government backed SOEs during difficulties, taking over the huge debts.

For example, Vinashin's debts reached VND86 trillion (USD4.1 million), but the company was rescued with various support and stimulus packages.

In 2010, the Ministry of Construction also asked the Ministry of Finance to save several member companies under Song Da Group, who had hundreds of billions of VND in foreign debts.

According to many, SOEs are one of main causes for the state budget deficit, and to set off the deficit the state resorted to issuing bonds and increasing the public debt.

Meanwhile, the state-owned sector has not shown any improvement, with many enterprises seemingly going the way of Vinashin and Vinalines.