Prime Minister Nguyen Tan Dung on Monday requested that the Ministry ofFinance release the business results of State-run corporations andeconomic groups.
At the second session of the 13th NationalAssembly, which started on October 20, Dung called on all State-ownedenterprises to focus on their core businesses while planning to divestfrom non-core businesses.
The Government also asked relevantbodies and ministries to set up plans on restructuring SOEs that havesuffered losses and rearrange organisational structures and corporategovernance in wholly State-invested companies.
In addition, theGovernment promised to create an equal playing field across all sectors,putting all enterprises into a competitive business environment whilealso vowing to publicise the business results of SOEs.
At aseminar held by the Academy of Finance under the MoF in Ha Noi onNov.15, Nguyen Ngoc Tuyen, director of Institute for Finance andEconomics, said that while SOEs were given priority in areas such asnatural resources, land and capital, they operated less effectively thanother sectors.
According to the Central Institute for EconomicManagement, as of 2011, State-run corporations and economic groupspossessed total assets worth 1,500 trillion VND (71.77 billion USD) witha total equity on 572 trillion VND(27.37 billion USD). Of this, SOEsoperating in processing industries, electricity production anddistribution, gas, water, transport, logistics, telecoms, mining andbanking and finance hold about 80 percent of the total equity.
Asurvey conducted by the General Statistics Office showed that SOEs'returns on invested capital during 2007-09 were quite low, ranging from3.5 to 4.3 percent compared to those of foreign invested enterprises at9.1 to 11.7 percent.
Tuyen said unhealthy monopolies had alsobeen established by several major SOEs such as Petrolimex (accountingfor 60 percent of the petrol market shares), Electricity of Viet Nam(accounting for all power distribution) and the Viet Nam National Coaland Mineral Industries Holdings Corporation Ltd. Such monopolies haddistorted the domestic market while hurting the country and consumers'benefits and restraining the competitiveness.
He added thatduring the past years, many SOEs had poured too much money into non-corebusinesses such as securities, banking, insurance and real estate,causing huge losses.
Representative Pham Tien Dat from theAcademy of Banking suggested that SOE restructuring plans should becarried out based on State support, while certain vital sectors such aselectricity, petroleum exploitation and posts and telecoms should remainas Government monopolies.
At the seminar, participants said SOEs' restructuring schemes should be carried out during the 2012-15 period./.
At the second session of the 13th NationalAssembly, which started on October 20, Dung called on all State-ownedenterprises to focus on their core businesses while planning to divestfrom non-core businesses.
The Government also asked relevantbodies and ministries to set up plans on restructuring SOEs that havesuffered losses and rearrange organisational structures and corporategovernance in wholly State-invested companies.
In addition, theGovernment promised to create an equal playing field across all sectors,putting all enterprises into a competitive business environment whilealso vowing to publicise the business results of SOEs.
At aseminar held by the Academy of Finance under the MoF in Ha Noi onNov.15, Nguyen Ngoc Tuyen, director of Institute for Finance andEconomics, said that while SOEs were given priority in areas such asnatural resources, land and capital, they operated less effectively thanother sectors.
According to the Central Institute for EconomicManagement, as of 2011, State-run corporations and economic groupspossessed total assets worth 1,500 trillion VND (71.77 billion USD) witha total equity on 572 trillion VND(27.37 billion USD). Of this, SOEsoperating in processing industries, electricity production anddistribution, gas, water, transport, logistics, telecoms, mining andbanking and finance hold about 80 percent of the total equity.
Asurvey conducted by the General Statistics Office showed that SOEs'returns on invested capital during 2007-09 were quite low, ranging from3.5 to 4.3 percent compared to those of foreign invested enterprises at9.1 to 11.7 percent.
Tuyen said unhealthy monopolies had alsobeen established by several major SOEs such as Petrolimex (accountingfor 60 percent of the petrol market shares), Electricity of Viet Nam(accounting for all power distribution) and the Viet Nam National Coaland Mineral Industries Holdings Corporation Ltd. Such monopolies haddistorted the domestic market while hurting the country and consumers'benefits and restraining the competitiveness.
He added thatduring the past years, many SOEs had poured too much money into non-corebusinesses such as securities, banking, insurance and real estate,causing huge losses.
Representative Pham Tien Dat from theAcademy of Banking suggested that SOE restructuring plans should becarried out based on State support, while certain vital sectors such aselectricity, petroleum exploitation and posts and telecoms should remainas Government monopolies.
At the seminar, participants said SOEs' restructuring schemes should be carried out during the 2012-15 period./.
