State-owned enterprise restructuring discussed

The Hanoitimes - A workshop o­n renewing financial mechanisms and policies to assist the restructuring of State-owned enterprises (SOEs) was held in Hanoi o­n May 31 by the Ministry of Finance and the Asian Development Bank (ADB).

The workshop was to create an opportunity for policy dialogues between the Ministry of Finance, State management agencies and SOEs, Deputy Finance Minister Tran Van Hieu said.

The dialogues aimed to clarify difficulties in implementing SOE restructuring and new or o­ngoing financial policies for businesses in order to propose solutions o­n financial mechanisms and policies for future study, he said.

The official affirmed that the SOE system has expanded, modernised and operated in accordance with the market mechanism, ensuring production and the provision of essential products, goods and services for the economy. It also plays a key role in the State’s macro-economic regulation, to ensure economic stability and social welfare.

However, there are shortcomings in the SOE system, such as low effectiveness and competitiveness and risks of financial imbalance, as well as significant losses at some groups, corporations and SOEs.

According to Dang Quyet Tien, Deputy Director of the Ministry’s Business Finance Department, the main goal of SOE restructuring is to help these enterprises become stronger for their role as the core element in the State economy.

The restructuring should be implemented in both macro and micro aspects and connected with economic restructuring, growth model renewal and macro-economic stability, he said.

He suggested the restructuring process implement all the solutions at the same time, including accelerating equitisation, renewing and improving capacity and effectiveness of business governance at each SOE as well as increasing State supervision of SOEs