JavaScript is off. Please enable to view full site.

​​Vietnamese beer giant makes great losses using government fund

Sunday, April 01, 2018, 10:01 GMT+7
​​Vietnamese beer giant makes great losses using government fund

The corporation made investment forays into many territories outside its specialty

The largest alcoholic beverage manufacturer in Vietnam has been held accountable for issues concerning its distribution of profits and generation of significant financial losses after using the government budget to invest in various domestic businesses.

The State Audit Office of Vietnam, the organ examining the use of public finance and property, has submitted a report to the Ministry of Industry and Trade, in which it mentioned the ineffectiveness in investment by Saigon Beer-Alcohol-Beverage Corporation, otherwise known as Sabeco, which is partially owned by the government.

The auditing administration said that Sabeco used the state capital in 2016 but is incurring a loss at the present.

Therefore, the firm has had to make a VND444.7 billion (US$19.5 million) worth of provision offset any potential losses.

This amount of expenditure accounts for 77.8 percent of the value of investments originally used.

Most of the corporation’s ventures are in banking and stocks, which are remotely related to its core field, beverage production.

The three largest investment projects of VND154.1 billion ($6.8 million), VND126.8 billion ($5.6 million) and VND39.3 billion ($1.7 million), respectively, went to Orient Commercial Bank, DongA Bank, and PVI Saigon – an insurance business. 20

Sabeco has been discovered making a loss investing over VND20.8 billion ($913,000) in Vinashin, a state-owned shipping building enterprise whose name was recently sullied with infamous illicit practices by its former leaders.

The auditing administration proposed conducting an investigation into causes for the investment losses and people to blame for the situation at Sabeco.

It also required the Ministry of Industry and Trade to point out who amongst the ministry’s personnel failed to ensure that the beer giant’s dividends – profits for shareholders – accumulated from 2016 backwards were distributed to the government, the major owner of nearly 90 percent of the company’s shares back to the end of the year.

The auditing body said the government should have received VND2.5 trillion ($110 million) in dividends.

It wanted to ascertain who stood behind the excessive reward to the company’s chief executive officer, general director, head of control and chief accountant in fiscal 2015.

The officials were collectively paid more than VND15 billion ($659,000), which is VND12.7 billion ($527,000) higher than the allowed level.

Sabeco, with the catchphrase “Vietnam’s pride,” used to be a business nearly completely owned by the government before a Thai magnate bought more than half of its shares in December 2017.

TUOI TRE NEWS

More

Read more

Vietnam launches campaign to combat drunk driving

Attempting to encourage awareness of traffic safety and reduce traffic accidents, the National Traffic Safety Committee has launched a three-month campaign to tighten control over the amount of alcohol drivers can drink

6 years ago
;

Photos

VIDEOS

Experience summer sand-boarding in Mui Ne

Sand-boarding, a popular activity amongst local children in the coastal tourism town of Mui Ne in south-central Vietnam, is attracting hundreds of tourists to the Red Sand Dunes

Young maple trees given better protection as Hanoi enters rainy season

The trees are currently growing well, with green leaves and healthy branches.

Hunting skinks for food in southern Vietnam

Skink meat is known to be soft, tasty, and highly nutritious.

Vietnamese-made app allows people to grow real veggies via smartphone

Nguyen Thi Duyen, a young engineer in Hanoi, developed the app and its related services to help busy people create their own veggie gardens.

Chinese tourists hit by Vietnamese over dine and dash

Four Chinese were reportedly injured, with one having a broken arm.

Latest news

Irish court approves extradition over Vietnamese truck deaths

The UK authorities, citing mobile phone analysis, cell tower data, and CCTV footage, allege that Harrison delivered the trailer in which the people were found to a Belgian port before its onward journey to Britain, a lawyer for the Irish state said last month