NA asks Gov’t to quicken rearrangement of SOEs

VGP – The NA on Friday approved a Resolution on improving validity and efficiency of policies relating to the use of State capital and properties in State-owned enterprises (SOEs).

November 27, 2009 10:32 AM GMT+7

The NA approves a Resolution on improving validity and effectiveness of policies relating to the use of State capital in State-owned enterprises, Hà Nội, November 27, 2009

Under the resolution, SOEs are allowed to involve in different business fields but focusing on their main areas assigned by the Government.

The NA asked the Government to issue specific regulations on conditions, criteria, and scope on which SOEs can penetrate in other fields. The Government should also speed up the rearrangement and renovation of these backbone economic entities.

In its resolution, the legislative body urged the Government to take resolute actions against poorly performed groups or corporations, even dissolving them.

To maximize the efficective use of State capital and properties in SOEs, the related legal documents must be reviewed, revised and supplemented comprehensively soon.

Regulations on reporting and publicizing SOEs’ performance must also be enacted to facilitate the State’s inspection and supervision over these players.

The model of the State Capital Investment Corporation (SCIC) needs to be reviewed and the Government must design legal documents to regulate this specific entity.

According to reports released by the NA Standing Committee, 90 SOEs owned VND 1,241 trillion (until December 31, 2008).

Last year alone, SOEs contributed nearly 40% of the country’s gross domestic product (GDP), 39.5% of industrial production value, over 50% of export turnover, and 28.8% of total domestic earnings (excluding crude oil and import-export tax).

By Hải Minh