State-owned enterprises (SOEs) should develop further in accordancewith market mechanisms, said experts at a conference in the capitalcity.
After more than 10 years of implementation of the Party'sresolutions on SOEs, the sector has made significant contributionstowards the national economy, said Vuong Dinh Hue, Chairman of the PartyCentral Committee's Commission for Economic Affairs on June 6 in Hanoi.
Speaking at a conference entitled Promoting the role of SOEs ina socialist-oriented market economy, co-organised by the Party CentralCommittee's Commission for Economic Affairs and the Party Committee ofCentrally-run Business Bloc, he said the SOE sector had contributed 32.4percent to the national GDP in 2013.
The system of SOEs hadbeen restructured and renewed to improve their business efficiency, hesaid. In 2013, 17 out of 18 largest State-owned corporations postedprofits, with a return on equity rate (ROE) of 16.13 percent and debt toequity ratio of 1.3.
He also said that SOEs, particularly largecorporations, played dominant roles in many key economic sectors and hadmade great contributions towards socio-economic development. Many ofthem played crucial roles in stabilising the macro economy, carrying outnational defence and security tasks, implementing social welfarepolicies and remedying natural disasters.
However, he said thatSOEs had many shortcomings and weaknesses and, in fact, had not yetplayed their key role in the State economic sector, reportedchinhphu.vn.
It was required that the key role of SOEs must bedemonstrated by their competitiveness, their contributions to theeconomy and their influence on other economic sectors.
Theirsuperiority in technology innovation, plus management skills and humanresource quality were also issues they needed to address, he noted.
Heasked SOEs to continue their restructuring and equitisation process topromote their key role in the national economy, and to only focus onmajor and essential sectors in strategic areas such as national defenceand security.
Hue said that the key role of State-ownedenterprises (SOEs) in the national economy should be institutionalisedand realised in accordance with market mechanisms.
Nguyen ThiKim Ngan, Deputy Chairwoman of the National Assembly said that toimprove efficiency in operation, the SOEs must innovate and restructurethemselves, including promoting of technology applications.
Theenterprises should also promote withdrawal of their capital fromnon-core businesses and this should finish before the deadline ofDecember 31, 2015. Additionally, these enterprises should improveefficiency in enterprise management and increase transparency in theiroperations.
Meanwhile, to enhance the performance of SOEs, HoangNguyen Hoc, Deputy General Director of the company's capital investmentbusiness (SCIC), said there was a need to improve the mechanism ofattracting foreign investors in SOEs, and make more room for them toinvest.
According to the current regulations, a foreign investorcould hold 49 percent of shares at a SOE at the maximum, Hoc said, butnot all sectors need the State's control so all shares at some SOE ofsome sector should be sold to foreign investors.
A representativeof Vietnam Petroleum Corporation (Petrolimex) said it was necessary toresolve the conflict between public goals and interest of enterprises toensure profits for shareholders. Support for the macro economy andensuring social security of SOEs, should be replaced by orderingmechanisms of the State and payment according to the market mechanism.
NguyenDinh Cung, Director of the Institute of the Central Economic Management(CIEM), agreed with that proposal and also said that when sufferinglosses in business, the SOEs should not propose to reduce tax and delaypayment of tax or other preferential things. All problems while doingbusiness would be resolved under market rules.-VNA
After more than 10 years of implementation of the Party'sresolutions on SOEs, the sector has made significant contributionstowards the national economy, said Vuong Dinh Hue, Chairman of the PartyCentral Committee's Commission for Economic Affairs on June 6 in Hanoi.
Speaking at a conference entitled Promoting the role of SOEs ina socialist-oriented market economy, co-organised by the Party CentralCommittee's Commission for Economic Affairs and the Party Committee ofCentrally-run Business Bloc, he said the SOE sector had contributed 32.4percent to the national GDP in 2013.
The system of SOEs hadbeen restructured and renewed to improve their business efficiency, hesaid. In 2013, 17 out of 18 largest State-owned corporations postedprofits, with a return on equity rate (ROE) of 16.13 percent and debt toequity ratio of 1.3.
He also said that SOEs, particularly largecorporations, played dominant roles in many key economic sectors and hadmade great contributions towards socio-economic development. Many ofthem played crucial roles in stabilising the macro economy, carrying outnational defence and security tasks, implementing social welfarepolicies and remedying natural disasters.
However, he said thatSOEs had many shortcomings and weaknesses and, in fact, had not yetplayed their key role in the State economic sector, reportedchinhphu.vn.
It was required that the key role of SOEs must bedemonstrated by their competitiveness, their contributions to theeconomy and their influence on other economic sectors.
Theirsuperiority in technology innovation, plus management skills and humanresource quality were also issues they needed to address, he noted.
Heasked SOEs to continue their restructuring and equitisation process topromote their key role in the national economy, and to only focus onmajor and essential sectors in strategic areas such as national defenceand security.
Hue said that the key role of State-ownedenterprises (SOEs) in the national economy should be institutionalisedand realised in accordance with market mechanisms.
Nguyen ThiKim Ngan, Deputy Chairwoman of the National Assembly said that toimprove efficiency in operation, the SOEs must innovate and restructurethemselves, including promoting of technology applications.
Theenterprises should also promote withdrawal of their capital fromnon-core businesses and this should finish before the deadline ofDecember 31, 2015. Additionally, these enterprises should improveefficiency in enterprise management and increase transparency in theiroperations.
Meanwhile, to enhance the performance of SOEs, HoangNguyen Hoc, Deputy General Director of the company's capital investmentbusiness (SCIC), said there was a need to improve the mechanism ofattracting foreign investors in SOEs, and make more room for them toinvest.
According to the current regulations, a foreign investorcould hold 49 percent of shares at a SOE at the maximum, Hoc said, butnot all sectors need the State's control so all shares at some SOE ofsome sector should be sold to foreign investors.
A representativeof Vietnam Petroleum Corporation (Petrolimex) said it was necessary toresolve the conflict between public goals and interest of enterprises toensure profits for shareholders. Support for the macro economy andensuring social security of SOEs, should be replaced by orderingmechanisms of the State and payment according to the market mechanism.
NguyenDinh Cung, Director of the Institute of the Central Economic Management(CIEM), agreed with that proposal and also said that when sufferinglosses in business, the SOEs should not propose to reduce tax and delaypayment of tax or other preferential things. All problems while doingbusiness would be resolved under market rules.-VNA
