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VietNamNews

State audit expected to speed up economic restructuring process

Update: December, 06/2013 - 09:01

The State Audit of Viet Nam (SAV) will examine economic restructuring in two key fields of public investment, State-owned enterprises and commercial banks, said SAV's general auditor, Nguyen Huu Van.— Photo tapchitaichinh

HA NOI (VNS) — The State Audit of Viet Nam (SAV) will examine economic restructuring in two key fields of public investment, State-owned enterprises and commercial banks, said SAV's general auditor, Nguyen Huu Van.

Van said that to assist the National Assembly in supervising the economic restructuring process during the next few years, the State audit would work on projects of infrastructure development or public procurements, especially those using Government bonds.

He also said that based upon a resolution of the Party Central Committee concerning Viet Nam's economic restructuring, projects on restructuring credit institutions and State-owned enterprises by 2015 were launched, but their progress remains slow.

In general, measures failed to create breakthroughs to improve resource allocations and the restructuring plans of localities has yet to make use of their advantages, Van said while addressing a workshop co-organised by SAV and the Association of Chartered Certified Accountants on Tuesday.

Pro Dr Tran Dinh Thien, director of the Viet Nam Economic Institute, said that public investment was largely taken from the State budget, and for many years accounted for 40 per cent of the budget.

Although during past years, overspending of the State budget was primarily caused by public investment, while data about safe levels of public debts remained vague, he said.

Meanwhile, about 70 per cent of funding that the Government allocated to localities was distributed to hundreds of districts without properly considering about real needs, he said, blaming this for ineffective and scattered investment during the past.

Further, economist Pham Chi Lan said restructuring State-owned enterprises would be a difficult journey, as these enterprises did not want to lose their incentives.

She noted that if enterprises made restructuring plans by themselves, she questioned whether the drastic reforms they proposed might, in fact, hurt them.

At this time, enterprises face increasing difficulties because of reduced funding, she added.

Additionally, Head of the Business Development Institute Le Xuan Nghia said that bank cross-ownership or family-run commercial banks often cornered financial markets.

"To curb this problem, auditors must target ownership structures at commercial banks and deliver proper punishments," he said.

Meanwhile, other experts said it was crucial to supervise and improve the transparency and discipline of commercial banks, especially in their compliance with accounting practices and maintaining financial statements. — VNS

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