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More than half of FDI businesses report losses

Tho Huynh Tuesday | 01/10/2023 09:29

Photo: VnEconomy

More than half of all the businesses reported losses in the report to the prime minister on the result of the synthesis and analysis of FDI financial statements for 2021.

More than half of all the businesses reported losses in the report to the prime minister on the result of the synthesis and analysis of FDI financial statements for 2021.

According to the Ministry of Finance, 14,293 FDI businesses reported losses, which represents 55% of all businesses and represents an increase of 11% from 2020 with a total value of VND168,334 billion ($7 billion).

In all, there are 16,258 businesses with accumulated losses, which represents 62% of all businesses and is up 8% from 2020 with a total value of VND706,146 billion ($30 billion). With a value of VND162,233 billion ($6.9 billion), 4,402 firms (17%) lost their equity, which is an increase of 15% from 2020.

In 2021, the financial situation of FDI enterprises has experienced specific growth: total assets were VND8,857,187 billion ($337 billion), up VND1,025,139 billion ($43.6 billion), up 13% from 2020; equity was VND3,640.86 billion ($155 million), up VND358,258 billion ($15.2 billion), up 12.3% from 2020; and liabilities were VND5,261,313 billion ($224 billion), up VND666,872 billion ($28 billion), up 14.7% from 2020.

The Ministry of Finance reported that even while assets grew in size, liabilities grew at a faster pace than equity, indicating that debts rather than capital from debt-source investors were more important in driving asset growth.

The Ministry of Finance also suggested that the Ministry of Planning and Investment continue implementing investment incentive policies in accordance with the scope of investment projects and socioeconomic regions. 

This recommendation was made in accordance with the guiding principle of "Proactively To Attract and Cooperating with Foreign Investment, Taking Quality, Efficiency, Technology, and Environmental Protection as the Main Evaluation Criteria."

Source: SGGP

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