Nov 25, 2012. The outlook for the State corporate sector is never so dreadful after a report sent by the Ministry of Finance to National Assembly deputies in Hanoi this week unveils the black hole of crippling debts that will likely push many State-owned groups to the verge of bankruptcy. The path to survival looks rocky, and is only to open up in case macro-economic stability is achieved in the coming time.
As covered in local media, the total liabilities of 91 State groups and corporations amounted to nearly VND1,300 trillion last year, or around US$63 billion, a staggering increase of nearly 19% from the previous year. Such an amount of debts, says Sai Gon Tiep Thi, was equivalent to 65% of the national gross domestic product (GDP) in 2011.
Topping the list of debtors is PetroVietnam with nearly VND287 trillion, followed by Vietnam Electricity Group with over VND257 trillion, reports Tuoi Tre.