State-owned firms urged to target 15% growth rate

Prime Minister Nguyen Tan Dung asked State-owned groups and corporations to build thorough production, business and investment plans in order to reach an average growth rate of 15 per cent this year.

In a meeting yesterday, Dung asked the groups and corporations to expedite project timelines, allocate capital for the completion of key projects, especially infrastructure for electricity, transportation and support industries, as soon as possible.

The enterprises were also requested to focus on renewing themselves by equitising, which would help reduce State-owned stake in the groups, as well as concentrate on major businesses and avoid massive investment in unrelated sectors.

“This is deemed as a mission to contribute to the economic restructuring”, Dung stressed.

The Prime Minister also required the groups and corporations to build management, organisation and co-operation mechanisms to be used between parent companies and their subsidiaries, along with internal supervision controls, especially related to financial control in order to reduce risk.

The enterprises must efficiently implement the price adjustment road map decided by the Government to curb inflation, focus on measures to improve productivity, raise competitiveness and reduce production costs, he said.

State-owned groups and corporations earned total revenue of VND1,173 trillion (US$58 billion) last year, 22 per cent higher than the year’s set target and 36 per cent higher than the 2009 figure.

Four groups including the Viet Nam National Oil and Gas Group, Viettel, the Viet Nam National Post and Telecommunications Group, and the Viet Nam Rubber Group accounted for 80 per cent of the total profits.

Their contribution to the State budget was VND173 trillion ($8.7 billion), an increase of 31 per cent on 2009.

The near-bankrupt Viet Nam National Shipbuilding Industry Group (Vinashin) must draw lessons from the weaknesses it experienced in managing equity and wrongdoing, Dung noted. The shipbuilder must also make efforts to complete unfinished ship-building projects and seek new contracts in order to return to stable operation quickly, he stressed.

The Government would create favourable conditions for Vinashin to overcome difficulties and stabilise production, Dung affirmed.

In the meeting, State-owned groups and corporations suggested the Government to adjust a few financial, investment and energy policies to facilitate their efficient operations. — VNS

Tags: Vietnam companies, Vietnam enterprises, Vietnam SOEs