Equitisation of State-owned enterprises discussed | Halong Bay Airport

Equitisation of State-owned enterprises discussed

Breakthrough measures are needed to boost the equitisation of State-owned enterprises (SOEs), especially those proven ineffectual, said participants at a June 30 seminar in HCM City.

Professor Le Quoc, Deputy Director of the Ho Chi Minh National Academy of Politics and Public Administrations (HCMA), emphasized that SOE restructuring should pay attention to operation of different sectors and businesses, with a focus on economic groups, adding they should strictly prohibited from expanding beyond their core business areas.

According to a Government Decree issued in May 2014, SOEs are subjected to strict scrutiny in order to monitor law enforcement. The freshly issued decree aims to help SOE owners and managers grasp accurate information on real situation of their business operation.

However, many experts raised concerns over the implementation of the Decree, saying that it is essential to inspect business operations, take active role in preventing risks, and map out appropriate solutions for ineffective businesses.

Dr. Nguyen Thi My Dung from Financial University said the SOE equitisation process from 2014– 2015 is facing numerous challenges due to weaknesses in major State corporations and groups’ operations and the strong impact from the removal of tax barriers created by free trade agreements.

She stressed the need to make thorough preparations for SOE equitisation to raise competitiveness against imported products.

Other delegates at the seminar suggested mobilizing social sources for economic development and enhancing people’s role in building and mastering the economy might be a workable solution.

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