More SOEs to be sold

by P.V15 November 2016 Last updated at 14:02 PM

VTV.vn - Prime Minister Nguyen Xuan Phuc has said state-owned enterprises facing long-term losses will be sold. This move is seen as a key task for the government in improving the operation of state-owned enterprises.

The $358 second-phase expansion of Thai Nguyen Iron and Steel Plant is a decade behind schedule. The operation of the $313 Dinh Vu Polyester Fibre Factory has been suspended. According to many NA deputies, these inefficient investments should be canceled or the firms should be allowed to go bankrupt.

“This is a political responsibility we have to rapidly implement. However, we're still delaying this process”, said Tran Hoang Ngan - National Assembly Deputy.

Apart from allowing state-owned enterprises to go bankrupt, the government also intends to boost the selling process of these enterprises. Two-thirds of the state-owned enterprises have been sold during the 2010-2015. But some 600 state-owned enterprises still await being sold. The policy is supposed to strengthen the transparency of state capital as well as reduce the burden on the public investment.

“When the private companies are supported by the state-owned capital, they are able to change the way the firms operate”, said Tran Dinh Thien – Head of Vietnam Institute of Economics.

“We can't keep maintaining the model that the state owns sizable properties. Meanwhile, we have to borrow money to maintain such properties”, said Nguyen Xuan Thanh – Director of Fulbright Economics Teaching Program.

In 2015, state-owned enterprises accumulated outstanding loans of 67 billion USD. According to many experts, this is an inefficient investment.

After being sold, the state-owned enterprises have to be listed on the stock market. In addition the draft law for support to small and medium-sized enterprises was discussed at the session of the 14th National Assembly. The draft law contains provisions to support firms to get bank loans, technology, to expand operations and invest in human resources.

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