Updated  
May, 17 2012 09:04:00

Firms forced to cut costs to remain afloat

HA NOI — As many as 83 major companies and four banks in the country have registered to cut operational costs by some VND13 trillion (US$624 million) in a bid to stay afloat in the economic downturn, the Ministry of Finance said.

The companies have announced their intent to cut management costs by VND3 trillion ($144 million) and other input costs like raw materials and energy by VND9.4 trillion ($451 million), accounting for 24.7 and 75.3 per cent of the total savings, respectively.

Four leading banks, Vietcombank, Vietinbank, Agribank and BIDV will cut a combined VND735 billion ($35 million) of their operational costs. Mekong Housing bank (MHB) has also pledged to cut costs, but has not revealed a figure yet, according to the ministry.

The Government in January asked most State-owned companies and corporations to cut down on costs and lower product prices to improve their competitiveness in the economic downturn.

BaoViet Insurance Group in February was the first firm to register to cut costs by VND145 billion ($6.8 million), while still maintaining its planned annual revenue. Other firms followed such as Viet Nam National Textile and Garment Group (Vinatex) with VND1.1 trillion, Electricity of Viet Nam (EVN) with VND1.8 trillion, House and Urban Development (HUD) with VND125 billion and Viet Nam National Shipping Lines (Vinalines) with VND105 billion. The State Bank of Viet Nam last month ordered five major banks in the country to cut costs by 5 to 10 per cent in order to bring interest rates down. — VNS

Send Us Your Comments:
Name:
Your E-mail address:
Title:
 

VietNamNews may edit your comments and not all emails will be published.

Highlight

Mekong summit calls for greater riparian co-operation Mekong summit calls for greater riparian co-operation

Mekong River riparian countries have improved co-operation since the first Mekong River Commission (MRC) summit held in Thailand four years ago, a senior Vietnamese official has said.

Viet Nam attempts to hold back deadly measles strain Viet Nam attempts to hold back deadly measles strain

The head of Viet Nam's General Department of Preventive Medicine, Tran Dac Phu, announced on Tuesday that the department would work to contain the outbreak of measles over the coming months.

Da Nang plans a greener future Da Nang plans a greener future

The central city of Da Nang will have a face-lift as it becomes a green city following the Prime Minister's decision on the city's adjusted master urban plan for 2030 and 2050.

Delta households face water shortage Delta households face water shortage

More than 377,000 people in the Cuu Long (Mekong) Delta face a fresh water shortage because of saline water intrusion in the area, according to the National Centre for Rural Clean Water Supply and Environmental Sanitation.

Ha Noi to host National Shooting Cup 1    Ha Noi to host National Shooting Cup

The National Shooting Cup is scheduled to take place in the Ha Noi-based National Sports Training Centre from April 16 to 24.