Need to urgently tackle inventories and bad debts stressed
Recently, the government’s periodical meeting July 2012 chaired by the prime minister Nguyen Tan Dung took place in Hanoi on 30 and 31 July.
Accordingly, the urgent tasks for the ending months would include easing burdens on businesses, inflation mitigation, macroeconomic stabilisation and the like.
Specifically, it is vital to tackle huge inventories and surging bad debts; boost up disbursement funded by the state budget; protect and develop the domestic market. Also, preventive measures against smuggling and fake commodities and tight control over goods temporarily imported for re-exported together with relevant prices and fees that could drive up their selling prices should be further strengthened.
The State Bank of Vietnam is required to conduct the banking restructuring process on schedule as in the approved scheme as well as get rid of current bad debts and timely deal with feeble banks so as to make the system healthier. Moreover, flexible interest rate management along with appropriate credit growth stimulus would be needed in order to bolster economic growth.
In addition, disbursement of capital funded by the state budget and credit particularly in the infrastructure investment and counter capital for ODA projects should be accelerated. Monetary and fiscal policies should be flexibly combined. Exports should be further promoted with favourable credit conditions given to major export items particularly in the agriculture sector and seafood raising.
Another important task is to review and restructure state-owned enterprises (SOEs) for enhanced productivity and develop appropriate regulations on financial and capital management at these firms.
Presently, there are some 1,300 100 percent state-owned enterprises, of which 53.6pct are managed by localities, 27.1pct by ministries and branches and 19.3pct by state groups and corporations. SOEs in the public-interest field account for 34.5pct and those in business sectors make up 65.5pct of the total number of SOEs.
However, low operational efficiency that fails to correspond to allocated resources and poor governance that falls behind the requirements of the market economy remain popular at these firms.
Some have failed to fulfil the role of the locomotive for economic and social development, even incurred losses, broken the law and seen inefficiency in utilisation of the state capital, assets and land.
Recently, the prime minister released the Decision 929/QĐ-TTg on 17 July giving the green light to the scheme on state-owned enterprise restructuring with concentration on large economic groups and corporations for the period 2011-2015.
Ongoing revision and completion would continue in terms of financial management, state capital utilisation, monitoring of corporate finance, investigation of operational efficiency assessment as well as the selection and appointment of appropriate managers, general directors, and CEO and management board members.
Category: Economy
