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Property

Major State real estate enterprises face heavy losses

Released at: 16:17, 26/08/2021

Major State real estate enterprises face heavy losses

Photo: Illustration

Audit reveals losses incurred, tardy project implementation and operation, and questionable land use.

by Phuong Hoa

State Audit of Vietnam (SAV) has reported on financial activities and activities relating to the management and use of State capital in 2019 by 160 enterprises of 17 State-owned groups and corporations in Vietnam.

Many large enterprises in the field of construction and real estate faced heavy losses. Specifically, eight units with a capital contribution from the Hanoi Construction Corporation (Hancorp) lost VND289.05 billion ($12.65 million) in 2019, while the Hanoi Housing Development and Investment Corporation (Handico) lost VND60.99 billion ($2.66 million) invested in Handico 68, etc.

As of the time of the audit, some real estate investment units had completed construction work but had not yet sold or put the project into operation, reducing the efficiency of capital use. Apartment blocks still have many empty apartments, and there are other projects that were not completed on schedule and others that were completed but have not operated effectively.

In addition, many units have large unused or inefficient land areas. For example, the PetroVietnam Oil Corporation (PVOil) has a land area of 29.34 ha, the Saigon Real Estate Corporation (Resco) 6.3 ha, and the Gia Lai Electricity JSC (GEC) 0.54 ha. Cases of land use for improper purposes still exist, such as the Central Power Service Company (CPSC) with a land area of 0.14 ha and PVOil with 13.12 ha, etc. There are also many land plots without legal documents.

Many units, such as PetroVietnam Power (PVPower), the Ho Chi Minh City Power Corporation (EVNHCMC), PVOil Saigon, PVOil Thai Binh, and the Saigon Water Supply Corporation (Sawaco) have not fully completed their financial obligations relating to land with the State. Through the audit, SAV has determined that the additional land rentals and land use taxes payable by SAWACO total VND145.58 billion ($6.36 million), the Urban Infrastructure Development Investment Corporation (UDIC) VND47.05 billion ($2.05 million), the Saigon Transportation Mechanical Corporation (Samco) VND23.16 billion ($1.02 million), Resco VND4.32 billion ($118,860), and EVNHCMC VND5.09 billion ($222,500).

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