Vietnam state-owned companies invest $6.6 bln overseas

Oil and gas giant PetroVietnam has spent an accumulated $4 billion overseas, telecommunications Viettel $1.47 billion, and Vietnam Rubber Group $771 million, according to a recent government report.

This means projects in the industries of oil and gas, telecommunications and rubber account for 96% of state-owned-company investment abroad.

So far 30 companies have invested in 26 countries and territories in 137 projects, up six from 2020.

Last year, 88 projects recorded a total revenue of nearly $7.8 billion, up 40% from 2020. Among them 62 posted a combined post-tax profit exceeding $810 million, up 90% from 2020.

Vietnamese investors were distributed $282.82 million worth of profit, up 2.4 times from 2020. But only half of state-owned companies investing abroad were able to recoup their investment.

A total 62 out of 137 projects saw their investment recouped by a total $3.64 billion, with the majority (95%) from PetroVietnam and Viettel.

There were 44 projects with a total accumulated loss of nearly $1.34 billion, up 13.9% from the end of 2020.

Viettel posted the biggest loss last year with a nearly $247 million loss in Myanmar due to depreciation of the local currency.

It also posted a loss of nearly $44 million in Tanzania as the local government tightened management over subscriptions and increased taxes and fees.

Some projects are seeing high risks, like mining, gas and oil projects of PetroVietnam or a potash mining project in Laos of Vietnam National Chemical Group.

“Some state-owned companies have a limited ability to forecast and build investment plans, which affect project performance,” the report said.