Gov’t urges SOEs to push growth rate to 15%

PM Nguyễn Tấn Dũng (standing) addresses the meeting between the Cabinet members and leaders of 22 State-owned enterprises, Hà Nội, February 15, 2011 – Photo: VGP

The Government chief mentioned this at a meeting between the Cabinet members with leaders of 22 State-owned corporations and groups to review the enterprises’ 2010 performance and discuss ways to implement their tasks in 2011.

Leading role

Report shows that total capital value of 21 SOEs reaches VND 540,701 billion, an increase of 11.75% against 2009, of which Vinacomin and Viettel registered the quickest growth at around 44-53%. Meanwhile, all the SOEs’ debt basically have been put under control.

Total revenue of those enterprises is estimated at VND 1,173,489 billion last year, or 22% above the preset target and 36% higher compared to 2009.

Of the 21 SOES, 20 gained pre-tax profits of VND 70,778 billion and contributed some VND 173,549 billion to the State budget, an increase of 31% against 2009.

Besides, the re-arrangement and consolidation of the SOEs have been strengthened. By July, 2010, the PM signed decisions to transform all the main SOEs, except the Việt Nam Steel Corporation, into one-member limited liability companies.

Many of them began reviewing their business policies to overcome scattered and ineffective investment, the report says.

Data show that the public sector accounts for nearly 40% of the country’s gross domestic product, significantly making Việt Nam one of the world top ten economies with strongest growth rates.

PM Nguyễn Tấn Dũng (second, R) talks with leaders of the SOEs on the sidelines of the meeting, Hà Nội, February 15, 2011 – Photo: VGP

Solutions for attaining 15% growth rate

To achieve the growth rate of 15%, PM Dũng highlighted the following four issues that the SOEs must focus on:

Firstly, key projects and works, particularly on infrastructure, transport, electricity, and supporting industries, must be accelerated.

Secondly, SOES must develop plans for continued equitization, focus on their main business functions. This is considered an important move in the process of economic restructuring.

Thirdly, the Government chief asked SOEs to boost internal inspection to mitigate financial risks.

Fourthly, SOEs are required to strictly follow the roadmap for price adjustment and inflation curbing.

Moreover, PM Dũng also reminded Vinashin to continue seriously reviewing and repairing their subjectivism and ill-management, and stressed that the group needs to speed up restructuring plan.

The Government chief assigned ministries to work out measures in order to form SOEs that are strong enough to compete with regional partners.

Regarding some key commodities, the PM pointed out that the prices of electricity, coal, and petrol will be gradually decided by the market rules, citing the need for the SOEs to re-arrange their strategies and replace out-of-date technologies with more modern ones.

By Hải Minh