Vietnam to Continue Financing SOEs Next Year
Vietnam’s National Assembly, the country’s highest legislative body, yesterday approved central state budget estimates for next year, with more funds to be poured into five state-run corporations and groups.
Under the plan, Vietnam will allocate VND3.5 trillion ($179.48 million) for Vietnam Oil and Gas Group (PetroVietnam) to carry out its projects next year. Vietnam Railway Corporation (VRC) will receive VND1.42 trillion to upgrade its railway items.
Electricity of Vietnam (EVN), Vietnam National Shipping Lines (Vinalines) and Vietnam Post and Telecommunication Group (VNPT) will get VND215 billion, VND71 billion and VND50 billion, respectively.
The government will issue VND45 trillion worth of bonds to raise funds for projects belonging to a list announced by the National Assembly’s Standing Committee.
Number of SOEs has been reduced to 1,500 from 12,000 over the past 20 years, but efficiency is questionable. The growth rate of SOEs is always lower than other economic sectors and even lower than the national average.
Experts have urgently urged Vietnam to overhaul and restructure SOEs in move to enhance the efficiency of capital use at the firms expanding their operations into non-core business activities. (Pioneer)
Vietnamese
