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VietNamNews

SOEs slash costs by $638.5 million under gov't plan

Update: August, 16/2014 - 09:03
The Government required SOEs to make commitments to cut management costs and other spending on materials and energy. — File Photo

HA NOI (VNS)— State-owned enterprises (SOEs) cut their operating costs last year by more than VND13.6 trillion (US$638.49 million).

According to People's Police newspaper, it was in a Ministry of Finance's report to the Prime Minister on the result of implementing a plan requiring SoEs to cut management costs in 2013.

The ministry's data was based on reports from eight ministries, People's Committees of five provinces and cities, 108 State-owned groups and corporations, and 7 joint stock groups and corporations in which the State holds dominant stakes.

The Government, early last year, launched a programme that required SOEs to make commitments to cut management costs and other spending on materials and energy by 5 to 10 per cent. At that time, the SOEs assured a slash in their expenses by over VND12.145 trillion ($570.18 million).

Many CEOs from these SOEs said that the activity would not only help raise production and make businesses become more efficient, but would also reduce the burden on the State budget and create more financial sources that could be invested in social welfare.

The activity was one among the Government's premier tasks to restructure the economy as well as focus on public investment, SOEs and the financial system, and to increase the efficiency and competitiveness of the economy. It was said more should be done to promote the role the State economic sector plays and SOEs must contribute to sustainable economic development. — VNS

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