Prime Minister Nguyen Tan Dung recently hosted a meeting with leading State-owned enterprises (SOEs) to discuss operating plans and tasks for 2011.In 2010, revenues beat annual plan by 22 %.
According to a report released at the meeting, total owner’s equity of 21 SOEs (set up according to the Decision 91 of the Government, commonly referred as Corporation 91) reaches VND 540.7 trillion, an increase of 11.75 % against 2009. Vietnam National Coal, Mineral Industries Holding Corporation Limited (Vinacomin) and military-run Viettel Group registered the quickest growth at around 44-53 %.
Meanwhile, all the SOEs’ debts basically have been put under control. Total revenue of those enterprises is estimated at over VND1,170 trillion last year, or 22 % above the preset target and 36 % higher compared to 2009.
Of Corporation 91s, 20 gained pre-tax profits of VND70,78 trillion and contributed some VND173,5 trillion 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 Vietnam Steel Corporation, into one-member limited liability companies.
Many of SOEs began reviewing their business policies to overcome scattered and ineffective investment.
Four solutions for attaining 15 % growth rate in 2011
To achieve the growth rate of 15 %, Prime Minister Nguyen Tan Dung 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 equitisation to reduce the number of affiliated companies with State-controlling interests and restructure affiliates, and focus on their main business functions. This is considered an important move in the process of economic restructuring.
Thirdly, SOEs need to focus on building internal inspection to mitigate financial risks.
Fourthly, SOEs are required to strictly follow the roadmap for price adjustment and inflation curbing. They are also asked to adopt measures to boost business performance and expand markets.
Moreover, Prime Minister Nguyen Tan Dung also reminded the Vietnam Shipbuilding Industry Group (Vinashin) to continue seriously reviewing and repairing their subjectivism and ill-management, and stressed that the group needs to speed up restructuring plan.
Prices of key commodities to gradually base on market regime
In response to proposals for key input prices, exchange rate and lending regimes, the Prime Minister highlighted that the Government will create best conditions for companies to do business.
However, he pointed out that the prices of electricity, coal, and petroleum 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.
In affirming to consider requests to help SOEs handle difficulties, he noted that SOEs might be granted more autonomy and born more responsibility.
The Prime Minister assigned ministries to review investment projects and capital arrangements for SOEs to ensure feasibility and prevent scattered investment. (VGP)
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