How are foreign investment projects profitable and losing?

In 2023, there will be 64 profitable projects, with total after-tax profit of 690.4 million USD, an increase of 120.85 million USD, equivalent to 21.22% compared to 2022.

In 2023, there will be 87 revenue-generating projects - Illustration photo by Duy Linh.

Of the 87 revenue-generating projects, 64 were profitable and 23 were loss-making, according to the performance report. investment, management and use of state capital at business nationwide in 2023, has just been sent by the Government to the National Assembly .

Authorized by the Prime Minister to sign this report, Deputy Prime Minister - Minister of Finance Ho Duc Phoc said that by December 31, 2023, there were 29 state-owned enterprises and enterprises with state capital making overseas investments in the form of direct investment and investment through level 1 and level 2 subsidiaries.

In 2023, the amount of foreign investment capital implemented was 52.64 million USD in 9 projects, mainly in projects of subsidiaries of the Vietnam Oil and Gas Group (PVN) (3 projects with a total investment capital implemented in the year of 49.21 million USD).

The total foreign investment capital of state-owned enterprises, state-owned enterprises and subsidiaries (state-owned enterprise sector) as of December 31, 2023 is 5,966.95 million USD (equal to 53.65% of registered investment capital).

Of which, PVN has the largest amount of overseas investment capital (3,373.1 million USD, accounting for 56.53% of total overseas investment capital), followed by Viettel (1,472.17 million USD, accounting for 24.67%); VRG ranked third (773.47 million USD, accounting for 12.96%). The total overseas investment capital of these 3 enterprises accounts for 94.16% of the total overseas investment capital of state-owned enterprises and enterprises with state capital.

The fields of foreign investment continue to be mainly in the following fields: oil and gas; telecommunications; rubber plantation and processing; and other fields (mineral exploitation; agriculture; construction, trade, air transport, etc.). Of which, the oil and gas sector, telecommunications sector, and rubber plantation and processing sector are the largest foreign investment sectors with foreign investment capital accounting for 95.92% of the total foreign investment capital.

According to the report, in 2023, the amount recovered is 261.88 million USD (of which the profit transferred to the country is 153.58 million USD); mainly from PVN projects with 106.94 million USD (profit transferred to the country: 29.32 million USD, other recovery 77.62 million USD). The amount recovered by Viettel is 87.05 million USD (profit transferred to the country is 71.84 million USD, recovery of principal and interest from shareholder loans: 15.14 million USD, other recovery 0.07 million USD). VRG recovers 30.34 million USD (profit transferred to the country is 28.88 million USD, recovery of principal and interest from shareholder loans is 1.46 million USD).

Accumulated to December 31, 2023, there were 76 overseas investment projects of 18 enterprises that generated recoveries (an increase of 4 projects compared to 2022), with a total accumulated amount of 3,702.83 million USD (of which profits transferred back to the country were 2,003.73 million USD, principal and interest from shareholder loans: 899.12 million USD, other recoveries: 799.98 million USD), equal to 62.06% of the total capital invested abroad.

PVN has the largest amount of recovered money, 2,379.2 million USD (accounting for 64.25% of the total amount recovered from state-owned enterprises, including profits transferred to the country of 1,084.85 million USD, principal and interest from shareholder loans: 549.12 million USD, other recoveries: 745.23 million USD), Viettel is second with 1,037.48 million USD (accounting for 28.02% of the total amount recovered from state-owned enterprises, including profits transferred to the country of 726.22 million USD, principal and interest from shareholder loans: 311.14 million USD, other income: 0.12 million USD). The amount recovered by these two enterprises accounts for 90.08% of the total amount recovered from overseas investment projects of state-owned enterprises and enterprises with state capital.

Regarding the production and business results of overseas investment projects, Mr. Phoc said that in 2023, there were 87 projects generating revenue with a total revenue of 9,569.54 million USD, down 1.2% compared to 2022. Of which: 64 projects were profitable, with a total profit after tax of 690.4 million USD (an increase of 120.85 million USD, equivalent to 21.22% compared to 2022). The profit distributed in the year to Vietnamese investors was 191.95 million USD (a decrease of 62.79 million USD, equivalent to a decrease of 24.65% compared to 2022).

Besides, also in 2023, there were 23 loss-making projects (6 projects less than in 2022) with a total loss of 133.21 million USD (loss decreased by 130.19 million USD, down 49.4% compared to 2022).

As of December 31, 2023, there were 43 projects with accumulated losses (43 projects in 2022) with a total accumulated loss of 1,322.86 million USD (a decrease of 118.21 million USD, equivalent to 8.2% compared to 2022), the Government informed.

Source