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.

SEE ALSO

Hightlight

Disabled speaker inspires audience Disabled speaker inspires audience

More than 2,500 people attended a talk by Nick Vujicic, an inspirational speaker without arms and legs, at the White Palace Conference Centre in HCM City's Tan Binh District yesterday.

Crane accident leads to major power cut Crane accident leads to major power cut

A two-hour power failure caused by an incident on the 500kV north-south transmission line hindered road traffic in many southern provinces and HCM City yesterday afternoon.

Spread of hand-foot-mouth disease concerns hospitals Spread of hand-foot-mouth disease concerns hospitals

Hand-Foot-Mouth disease (HFMD) is now at its peak, having infected a total of 796 children in HCM City in April, an increase of 127 per cent against the same period last year.

US steel producers make dumping claim US steel producers make dumping claim

After welded steel pipes and steel wire garment hangers, now welded stainless pressure pipe from Viet Nam continue to face charges of dumping in the US.