State enterprises need restructure

Workers of the Electricity of Viet Nam check the Viet Tri Transformer Station in Phu Tho Province. State-owned groups, like EVN, must raise their operational efficiency. — VNA/VNS Photo Ngoc Ha

HCM CITY — Experts discussed measures to improve the operational efficiency of State owned groups (SOGs) at a seminar organised by the National Economics University and the University of Economics of HCM City yesterday.

Delegates said SOEs account for around 50 per cent of state-funded investment, 60 per cent of bank credit and 70 per cent of official development assistance, but their return on investment was quite low, with some incurring big losses.

The ineffective use of the State's resources by SOGs affects the quality of growth, development and competitiveness of the economy, they said.

Professor Tran Ngoc Tho said the country should reduce the number of SOGs by liquidating sections of SOGs or even SOGs as a whole if their operations are ineffective.

SOGs must be restructured so that in the next three to five years, the country only has a few of them left to implement tasks that cannot be done by other sectors, he said.

Nguyen Dong Phong, rector of the University of Economics HCM City, said the role of SOGs in the economy as well as their achievements and shortcomings should be reassessed so as to map out development orientations for the future.

He said changes are necessary to improve the management and efficiency of SOGs and ensure greater transparency and higher competitiveness.

The Government should also have regulations to limit investment by SOGs in non-core sectors, he added.

Delegates at the meeting also agreed that the current "priority mechanisms" favouring certain sectors should be removed to create a fair and competitive business environment and make SOGs more competitive. — VNS