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Restructuring efforts see results

Update: June, 27/2014 - 09:13

Efficient enforcement and financial administration are key in successful restructuring of public investment projects, Truong Van Vo, a NA deputy, tells Thoi bao Kinh te Viet Nam (Viet Nam Economic Times).

The restructuring of public investment projects has achieved a certain amount of success, but National Assembly deputies hope to see much more. What do you think?

I agree that we need some breakthroughs in the process. This must go hand in hand with institutional reform.

I also believe there should be three "no's". Firstly, there should be no budget allocation for projects that have not yet completed administrative procedures. Secondly there should be no approval of high-deficit budgets under the National Assembly resolution.

And finally, the allocation of resources and how to use them must be based on enhancing the advantages of each economic region.

Who takes responsibility for any poor performances in public-investment projects?

It is important to differentiate the rights and obligations of people and organisations involved in them, from central to local level. This creates a foundation for evaluating and defining responsibilities to avoid financial losses or projects running over time. At the same time, it helps ensure that investments cover economics, society and environment protection.

The rights and obligations of those with most power in projects, from central down to local level, must be regulated by law. In addition, if necessary, there must be a mechanism to penalise project consultants and people who approve and appraise projects.

Whenever the topic of public investment is raised at full house meetings, deputies talk on and on about parcel investments and the shortage of money to invest in public projects. I think it is high time to take actions to put things in order.

What about stories of provinces vying against each other to build airports and sea ports?

A guiding principle in public investment projects is that they must base their master and strategic plans on socio-economic development. However, in my opinion, besides this principle, provinces should pay attention to regional economic planning, particularly projects requiring the approval of the National Assembly, Government or ministries.

This is important to avoid competition between provinces seeking to build airports and seaports and to overcome the problem of scattered investment. What's more important is that we can eliminate the "ask and give" mechanism.

What do think of the restructuring in agriculture and State-owned enterprises?

I have to concede that during our meeting, NA deputies expressed anxiety about agricultural restructuring. Many provinces are waiting for Government instructions on how and what to do.

In my opinion, the Ministry of Agriculture and Development should be the "conductor" in this process. They should come up with specific policies, such as the one that encourages enterprises to invest in agriculture and rural areas in line with the Government's Decree 210 and the PM's Decision 62.

Regarding of restructuring State owned enterprises (SOEs), we have achieved some initial success. However, there are still many challenges, particular the SOE equitisation campaign and orders for them to withdraw investment from non-core business. — VNS

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