Vietnam should withdraw capital from
state-owned enterprises (SOEs) in non-core sectors such as coffee, rubber and
tourism to better manage public debt in the economic downturn, said Dr Vo Dai
Luoc, former head of the Institute for World Economy and Politics.
Luoc
made this statement at the international workshop on restructuring the economy
that wrapped up in Ha Noi yesterday.
He
urged the Government to reduce the percentage of SOEs in GDP from current the
35 percent to 15-20 percent, a rate comparable to other economies.
Luoc
said SOEs should stop non-core business activities, especially in restaurants,
hotels and stock market sectors.
"The
country should also develop private enterprises to replace SOEs in some
areas," he added.
Experts
participating in the event agreed that the public debt crisis in Europe would
put the world's economy on a downward spiral this year.
They
said Vietnam would be hard pressed to promote trade with Europe since foreign
direct investment from the area would be decreased this year.
Dr
Nguyen Thang, vice director of the Institute of Social Sciences and Humanities,
said restructuring should be implemented first at businesses that took
advantage of financial mechanisms to reach a high debt ratio on ownership
capital.
Thang
said the restructuring process should be transparent and information about SOEs
should be published, including the production situation, finances, business
targets and profits according to standards for listed companies in stock
market.
He said
the Government needed to remove preferential treatment for SOEs regarding
access to credit sources.
He
added that SOEs would not extend their debts while the country would continue
to open the market for monopoly sectors to create competition.
"The
Government should restructure the electricity and petroleum industries to
reduce prices and increase effectiveness."
VNA
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