|
High costs hit firms' profits
Several enterprises failed to reach their targets this year and face reduced growth in 2012 due to high production costs, inventory levels and interest rates.
The Southern Rubber Industry JSC (Casumina) earned a revenue of only VND2.2 trillion (US$105 million) in the first nine months of the year, accounting for 66 per cent of its earnings in the same period last year.
The company's post-tax profit in the nine-month period was VND17 billion ($809,000), a decrease of 82 per cent.
Casumina Deputy General Director Le Van Tri said that the company could not complete its business plans due to the global financial crisis.
Tri added that the company's market share would reduce in the upcoming time because of competition with mailand China and Taiwan.
The company had to spend VND47 billion ($2.2 million) on interest rate payments during the period, accounting for 88 per cent of last year's total.
A representative from Truong Thanh Furniture Group said that the company last year earned VND2.2 trillion ($105 million) on 70 per cent exports to Europe, the US, Japan and Australia, with the remainder earned on the domestic market.
She said that the group's profit had reduced against the last three years because of increasing debts sustained in meeting large orders.
The group spent VND200 billion ($9.5 million) on financial costs this year, VND29 billion ($1.4 million) higher than last year.
She said that although revenues could hit VND2.4 trillion ($114 million) this year, the group would still face a resolving inventory mounting to VND1.6 trillion ($76 million).
The situation has been similar in the steel sector.
Chairman of the Viet Nam Steel Association Pham Chi Cuong said that steelmakers would face tough times during the fourth quarter because world steel prices had decreased against increased currency exchange rates.
Cuong said that 20 per cent of the country's steel businesses were faced with bankruptcy.
Chairman of the Pomina Steel JSC Do Duy Thai said that profit targets of VND612 billion ($29 million) this year would remain out of reach because of losses incurred via currency exchange. The company managed to meet 30 per cent of national steel demand via 70 percent of imports.
vietnamnews
|
