The number of foreign-invested enterprises reporting losses, accumulated losses, and losses of equity has been increasing for many years. The value of accumulated losses has reached VND908,211 billion. Many enterprises have reported losses for many years but still expanded their investment capital...
Deputy Prime Minister Bui Thanh Son recently requested ministries, branches and localities to study the report and recommendations of the Ministry of Finance after synthesizing and analyzing the 2023 Financial Reports of foreign-invested enterprises (FDI). From there, proactively take appropriate measures and report to the Prime Minister on issues beyond their authority.
The 2023 financial statements of FDI enterprises are built on the basis of combining tax sector data provided by the General Department of Taxation and data compiled by the Departments of Finance in the 2023 financial statements, and import-export data provided by the General Department of Customs.
The number of foreign-invested enterprises with complete financial statement data for analysis is 28,918 enterprises.
16,292 FDI enterprises reported accumulated losses
Statistics of the Ministry of Finance on the situation of enterprises with accumulated losses and loss of equity in 2023 show that: As of December 31, 2023, the number of enterprises reporting losses was 16,292, an increase of 21.2%; the number of enterprises with accumulated losses was 18,140, an increase of 15%; the number of enterprises with loss of equity was 5,091, an increase of 15.2%; the loss in 2023 was VND 217,464 billion, an increase of 32%;
Accumulated loss value is 908,211 billion VND, up 20%; negative equity value is 241,560 billion VND, up 29%.
“The number of enterprises reporting losses, accumulated losses, and losses of equity has been increasing for many years,” the Ministry of Finance noted.
As of December 31, 2023, the total assets of enterprises with foreign investment capital are more than VND 9,957,039 billion (up 6.8% compared to 2022), equity is VND 4,192,339 billion (up 5.5%); of which the owner's investment capital is VND 3,040,282 billion (up 11.5%), accumulated undistributed profit is VND 890,603 billion (down 15.3%).
According to the Ministry of Finance, the production and business performance of FDI enterprises in 2023 will decrease compared to 2022.
Specifically: Revenue is 9,416,102 billion VND, down 4.3%, profit after tax is 337,027 billion VND, down 15.7%, leading to a slight decrease in the amount paid to the State budget from 197,087 billion VND in 2022 to 193,238 billion VND in 2023.
“Many enterprises have reported losses for many consecutive years but still expanded their investment capital and production and business activities, focusing on the following areas: Processing and manufacturing industry; Wholesale, retail, repair of cars, motorbikes, motorbikes and other motor vehicles; Professional activities, science and technology.
Many enterprises have large investment capital, high revenue, and large pre-tax profits, but their contribution to the state budget is modest compared to other enterprises with lower investment capital and business results," the Ministry of Finance noted.
Strengthening inspection and supervision of FDI projects
Based on the assessment of the financial situation of FDI enterprises in 2023, the Ministry of Finance recommends that the Prime Minister direct ministries, branches and localities to review investment mechanisms and policies to propose the Government to amend or promulgate timely and effective investment policies.
Develop investment efficiency indicators as a basis for assessing the impact of FDI enterprises' projects on the economy, society, and environment in order to promptly manage and prevent possible risks.
This agency also proposed to strengthen the coordination between ministries, branches and localities in connecting, exploiting and cross-checking information to combat transfer pricing and tax evasion, effectively managing revenue sources arising from production and business activities of FDI enterprises, preventing revenue erosion, and increasing revenue for the State budget...
"Strengthening the review, inspection and examination of operating projects; stepping up management measures for FDI enterprises with ineffective operations or signs of violations, causing damage to the State budget revenue, and negatively impacting the environment and socio-economy," the Ministry of Finance stated its viewpoint.
Source: https://vietnamnet.vn/doanh-nghiep-co-von-ngoai-tai-viet-nam-lo-gan-trieu-ty-dong-2372252.html
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