Vietnam to have only 5-7 state-run groups: Minister

Sep 6th at 13:16

06-09-2012 13:16:39+07:00

The number of state-run economic groups is set to be reduced from the current 11 to only five to seven in the near future, Vu Duc Dam, Minister-Chairman of the Government Office told reporters at the government’s regular meeting Wednesday.

The statement was made after reporters questioned Dam about whether or not the state-owned Housing and Urban Development Holdings (HUD) and Song Da Group will be restructured.

“The government’s meeting did not directly discuss this issue,” said Dam.

“But the Prime Minister and the government have closely considered the restructuring of state-run enterprises and plan to reduce the number of state economic groups.”

Dam said the Prime Minister will have better and more responsible management over five to seven state-run institutions than the current 11.

“The [state-run] groups do not necessarily have to be major ones, but those that pose significant roles in the national economy such as oil and gas, power, and telecommunication,” he said.

Relevant ministries will be assigned to manage the remaining groups after the number reduction process, he added.

Regarding the case of HUD and Song Da Group, Dam said: “The government is considering.”

On-track growth

The government office chairman also announced at the meeting that Prime Minister Nguyen Tan Dung and other government members have reached a consensus that the country’s eco-social development in August and the first eight months of the year has positively improved, as earlier expected and directed.

Inflation is foreseen to stand below 7 percent, though the target GDP growth of 6 percent may not be met, said Dam.

“The growth is expected to be only 5 – 5.5 percent due to economic difficulties,” he elaborated.
In concluding the meeting, the Prime Minister said all relevant ministries and agencies should stay firm in fulfilling their duties in the last four months of the year.

They are also required to start developing plans for eco-social development next year, with the general targets focusing on macro-economy stabilization, cooling inflation, and reasonable economic growth.

“Another important task is to practice thrift in public spending, and pay attention to solutions to mobilize more forces for investment and development,” the Prime Minister emphad.