National
Assembly members and economists are suggesting that Vietnam equitizes large
state groups and reduces loan guarantees to state owned firms in an effort to
prevent financial resources being squandered on loss making businesses.
During the ongoing NA session, many deputies
have expressed concern over the ineffective operation of many state-owned
firms.
They have proposed a stop to preferential
policies for state-owned firms and the closure of those that are making losses.
Recent statistics compiled by the Ministry of
Investment and Planning show that around 12 percent of state-owned firms are
making losses every year.
Deputy Mai Thi Anh Tuyet from the southern
province An Giang suggested “pushing the process of equitizing state firms to
use state budget more effectively and to stabilize the macro economy.”
Tuyet said the process needs the government to
restructure public investment and the banking sector as well.
Be Xuan Truong from the northern province of
Bac Kan also called for a stop to loss-making state firms.
“State corporations which have made losses for
many years should announce bankruptcy and a stronger group chosen to replace
them,” Truong said.
Several deputies said the government should
manage its loan guarantees better so that it is not saddled with huge losses
made by mismanagement of state owned firms like shipbuilder Vinashin.
Deputy Truong Thi Hue from the northern
province of Thai Nguyen said the government should set up measures to better manage
state owned firms that are receiving loan guarantees worth a total of VND412
trillion ($19.65 billion) this year and VND532
trillion ($25.38 billion) next year.
She asked the government to publish the list
of firms that receive guarantees every year so that the National Assembly can
supervise their operations.
Hoang Dang Quang of the central region’s Quang
Binh Province said “The government should minimize their loan guarantees to
state firms.”
Quang said the government should carry out a
review to find out which state-owned enterprises are making losses in order to
make them focus on their main business or to turn them into private firms.
In a report sent to deputies over the weekend,
the NA Economy Committee also said that it’s time the government stops placing
state firms in a position of priority.
The report suggested that a more level field
be created for state and private sectors, in which the former will have to
publish details of all their operations under the same set of requirements used
for all listed firms.
Also, the state firms should be cut from all
preferential treatment such as special funds, special access to natural resources,
planning investment, special contact with policy makers, and long-term loans,
it said.
The committee also called for opening up
several markets currently occupied exclusively by state firms, in order to
create a more competitive environment.
By Bao Cam, Thanh Nien News
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Consulting, Investment and Management, focusing three main economic sectors: International PR; Healthcare & Wellness;and Tourism & Hospitality. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programs. Sign up with twitter to get news updates with @SaigonBusinessC. Thanks.
No comments:
Post a Comment