Experts present solutions to restructure State enterprises
Experts present solutions to restructure State enterprises
The Central Institute for Economic Management (CIEM) and a number of experts have presented their views on the role of the State economic sector and proposed solutions for the restructuring of State-owned firms by 2030 to improve socioeconomic growth, heard attendees at a conference today, September 23.
Speaking at the conference, within the framework of the “Australia supports Vietnam’s economic reform” program (Aus4Refrom), to publish the results of research on the State economy and the restructuring of State-owned firms, CIEM Vice President Phan Duc Hieu stated that it is necessary to set out directions, goals and solutions for the restructuring of State-run enterprises in the next planning term.
Some 90% of 103 State-owned enterprises are expected to be transformed into joint stock companies by 2025, VietnamPlus news site reported, citing a report by CIEM.
According to the report, by 2030, three to five State firms will list on international stock exchanges and at least one firm will be ranked among the world’s 500 largest firms.
At the conference aimed at presenting solutions to enhance the restructuring of State firms to build a plan for 10-year socioeconomic growth in the 2021-2030 period, experts also analyzed the restructuring of State firms in the 2011-2020 period.
Dr. Nguyen Dinh Cung, an economic expert and director of Aus4Reform, remarked that the restructuring of State-owned enterprises under the plan for socioeconomic growth needs more focus on key sectors and localities.
State firms should also operate in economic sectors that other economic groups have yet to consider and foster equitization activities, Cung noted, adding that it is necessary for State firms to separate the mission of production operations from the role of politics and public benefits.
Cung stressed that it is vital to separate the role of asset owners, State capital, the State management function and the function of business management at a State enterprise.
Setting up a specialized agency to act as representative of State ownership at State firms is necessary to ease the burden on ministries and local governments.
CIEM was appointed by the Ministry of Planning and Investment to conduct research activities to develop the plan, Hieu told the conference.
The purpose of the research was to summarize and assess the role of the State economy and the restructuring of State-owned enterprises between 2011 and 2020, Hieu said.
At the conference held by CIEM, Pham Duc Trung, head of the CIEM's Corporate Development and Reform Department, noted that the restructuring of State firms is aimed at streamlining the main role of the State economic sector, mainly through equitization and divestments.
From 2011 to 2020, the transfer of ownership rights in 750 State-owned enterprises through equitization will be completed.
The competent agencies transferred VND185 trillion from the equitization and divestments of State firms to the budget from 2016 to June this year, meeting 74% of the target.
However, State firms have faced many difficulties, including the low efficiency of State capital investment, job creation and budget collection.
