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Renovation of state enterprises in Viet Nam
2/11/2012 10:30' Send Print

During the renovation process, state enterprises were restructured which resulted in their reduced number. Some of them have maintained their positions in the market and enhanced their role in the economy. Nevertheless, in general the quality, effectiveness and competitiveness of the remaining state enterprises are low. The weakness of state-owned corporations and groups which have used a large amount of state resources has been a great concern of the public. Thus, the Ministry of Finance submitted to the Government a programme to restructure the state enterprises focusing on state-owned economic groups and corporations.

To enhance the effectiveness and competitiveness of state-owned groups and corporations, the author made the following recommendations:

- It is not advisable to name them state-owned enterprises but enterprise using state capital to remove the difference of state-owned enterprises with other enterprises. This means all enterprises are equal as stipulated by the Law of Enterprises.

- The role of state-owned enterprises must be perceived correctly as stipulated by Party’s documents. The role of enterprises as a capital power which helps the State operate macro-economy must be separated from the their role of as businesses

- Concern should be given to control the operation of state enterprises and groups and responsibility of organizations and individuals.

- No preferential assistance in the form of subsidy or protection is given to state economic groups and corporations. Policies will be developed to facilitate appropriate environment, self-reliance and transparency for enterprises.

- It is advisable to continue changing ownership and restructure of state enterprises.

- Creating synergy by Building economic and technological alliance among state enterprises with enterprises of all economic .

- Developing business, product and branding strategies to enhance administration capacity in state enterprises./.

Ngo Quang Minh,