PM clarifies economic restructuring orientations

PM Nguyễn Tấn Dũng  - Photo:VGP

As planned, the country’s economic restructuring will cover three fields of investment, State-owned enterprises,  and commercial banks.

Investment restructuring

To stablize marco-economy, it is neccesary to curb inflation and improve the efficiency of public investment, at the same time, mechanisms and policies shall be developed to mobilize resources from different economic sectors for infrastructure development.

PM Dũng said the Government is focusing on addressing scattered investment situation and reviewing investment decentralization to make sure that each project is verified before starting work.

The Government will quickly perfect institution to create favorable conditions for attracting economic sectors to pour investment in infrastructure through the models of BT, BOT, BTO, PPP, according the Government chief.

Policies will also be amended to further boost foreign direct investment inflows to supporting industries, industries backing agriculture, high value-added service sectors, and inftrastructure deveopment.

The Government will not encourage projects with low salaries, high levels of energy consumption.

PM Dũng reiterated that investment restructuring is a central task of all country, levels and business community. The Government will quickly prepare a draft law on public investment and propose amendments to the Law on State Budget to submit to the NA soon.

SOEs restructuring

The restructuring of State-owned enterprises will center on economic groups and corporations in order to improve the efficiency of these enterprises.

Under the above direction, PM Dũng said the Government is working on the following issues.

Firstly, clearly define State’s role and SOEs in our country’s socialist-oriented market economy, and ratify a master plan for restructuring the SOEs and the restructuring process would begin right in 2011.

Secondly, speed up equitization and encourage multi-ownership of the SOEs. The State will only hold a limited number of necessary enterprises.

Thirdly, all SOEs were asked to focus on their main business lines and the deadline for the SOEs to finish the withdrawal of State capital from the areas that are not their main business lines will be by 2015.

Fourthly, the Government will determinedly address enterprises with inefficient performance through equitization, mergence, dissolving, selling...

Fifthly, operations of SOEs will be made public and the SOEs will be placed in an equal competition with other economic sectors.

Restructuring of commercial banks

The objective of restructuring of commercial banks is to have a well-administered and effective banking system with diverse services.

Accordingly, the Government is focusing on the following aspects.

Firstly, review and precisely evaluate the management and operations of the commercial banks and credit organizations, then draft a master plan for restructuring the whole system.

Secondly, introduce new administration standards in accordance with the world’s ones, and enhance the central bank’s supervisory role in implementing these standards.

Third, the Government encourages commercial banks to increase capital ratio for agriculture and rural development.

Fourthly, equitize State banks with an aim to raise financial capacity, management skills and competitiveness.

Fifthly, develop specific plans to quickly reduce inefficient banks.

Sixthly, besides, it is necessary to develop others like securities, bond, ensurance markets as well as investment funds to meet the demand of the economy. The markets and funds will subject to close inspection.

PM Dũng said the Government will submit a master plan for economic restructuring to the NA at its next working session.

By Hải Minh