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Restructuring efforts yield limited results

Update: January, 09/2015 - 09:13
However, the service and agriculture sectors have not developed well, and there was still no support industry to encourage domestic production, experts said. — Photo dangcongsan

HCM CITY (VNS) — The economic re-structuring process has been implemented with "strong determination" but has had few results, the head of the Viet Nam Institute of Economics, said at a conference held yesterday in HCM City.

Tran Dinh Thien said the scale of bad debt was still high and increasing, and the plan to equitise State-owned companies would not reach the goals for the 2014-15 period, as only 126 companies, or 58 per cent, were equitised in 2014.

The conference, organised by the Viet Nam Institute of Economics and International Business Knowledge Corporation, was attended by more than 150 economic experts and businesspeople, many of whom noted that the 2011 Party Resolution 13 on the re-structuring process had been carried out in many sectors, including banking, public investment and the state-owned economy.

However, the service and agriculture sectors have not developed well, and there was still no support industry to encourage domestic production, experts said.

In addition, more than 60 per cent of foreign direct-invested companies announced losses for long periods. However, FDI was the sector with the biggest increase in investment, Thien said.

Other experts said that many people and businesses carrying out the re-structuring process did not understand it.

"They don't know what re-structuring is, as well as how to and what to re-structure, so they were wrong from the beginning," an expert said.

To improve re-structuring, experts recommended new solutions and suggested that leaders take new approaches.

An expert said that companies should make better use of talented human resources who have high productivity.

A businessmen at the meeting noted that the Government should develop the private sector and not just join in projects and jobs that the private sector cannot do.

He emphasised that the private sector must be the core of the economy.

Meanwhile, a businesswoman from the fisheries sector suggested strengthening the role of business associations.

She said that associations could represent companies and fight for them, but the leaders of the associations should not be members of state-owned agencies.

Other restructuring solutions included the study of other countries' experiences and development of long-term plans. — VNS

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