Preventing scattered investment, increasing non-state capital sources, and restructuring the economy

(Baonghean.vn) - On the afternoon of December 16, comrade Nguyen Xuan Duong - Deputy Secretary of the Provincial Party Committee, Chairman of the Provincial People's Committee chaired a meeting to listen to and give opinions on the report on the implementation of the economic restructuring project associated with growth model conversion and investment restructuring of Nghe An, period 2014-2016, tasks and solutions until 2020. Also attending were the Vice Chairmen of the Provincial People's Committee, leaders of departments and branches.

Comrade Nguyen Xuan Duong chaired the meeting.

Implementing Decision 339 of the Prime Minister on approving the overall project of economic restructuring associated with growth model transformation in the period 2013-2020, the Provincial People's Committee issued Decision No. 3278 promulgating the action program. After 3 years of implementation, Nghe An has achieved important results.

Reporting at the meeting, comrade Nguyen Van Do - Director of the Department of Planning and Investment said that in the period of 2014-2016, implementing the Government's policy on investment restructuring, focusing on restructuring public investment, investment management from the state budget and government bonds was increasingly improved, policies to attract and mobilize other capital sources for investment were focused. The results showed that it had prevented widespread investment and strictly managed the issuance of public investment policies.

Comrade Nguyen Van Do - Director of the Department of Planning and Investment reported on the implementation of the project on the economic structure of Nghe An province in recent years.

In the period of 2014-2016, implementing Resolution 11/NQ-CP of the Government, Directive 1792 of the Prime Minister, Law on Public Investment, the Provincial People's Committee as well as localities have postponed and extended the progress of many ineffective works and projects, which are not feasible in terms of capital sources, to focus capital on completed projects put into use, key and urgent projects.

Regarding the mobilization of social investment capital, increasing the proportion of non-state capital; innovating and changing the principles and criteria for allocating and implementing investment capital from the State budget and Government bonds. The results of mobilizing social investment capital and innovating the allocation in the 2014-2016 period have significantly changed the province's socio-economic infrastructure connection system.

Comrade Nguyen Huy Cuong - Deputy Director of the Department of Industry and Trade said that after restructuring, the province has strongly innovated to attract investment and proactively and promptly adjusted project works.

The project of economic restructuring associated with growth model transformation and investment restructuring of the province in the period of 2014-2016 focuses on restructuring the banking system (including the system of grassroots people's credit funds in the area and Bac A Commercial Joint Stock Bank), restructuring state-owned enterprises; restructuring the internal economic sectors towards rapidly increasing added value and competitiveness of products; and continuing to restructure economic zones reasonably, strengthening linkages between regions.

In a supplementary statement on the report, Ms. Hoang Thi Le Dung - Deputy Director of the Department of Finance, said that the project's objective is to reduce state budget expenditures, but local policies from the budget source for project works are numerous, so it is necessary to clarify the effectiveness after restructuring public investment. Regarding the restructuring of banks, it is mainly at the central level, however, to avoid mergers, many banks are restructuring and "rearranging" bad debts, so banks must have substantive reports to clearly understand the effectiveness.

Ms. Nguyen Thi Thu Thu - Director of the State Bank of Vietnam, Nghe An branch, said that the task of restructuring banks is very broad, but in the province, there is only the task of restructuring the Credit Fund and Bac A Bank. Ms. Thu also added that Nghe An is currently one of the provinces with low bad debt, under 1%.

Deputy Director of the Department of Industry and Trade Nguyen Huy Cuong affirmed that after restructuring, the province has strongly innovated to attract investment and proactively and promptly adjusted project works. However, due to limited resources, many infrastructure works have had to extend the construction time; many investment works have not been effective, some enterprises after restructuring are facing many difficulties, in which the processing industry is facing difficulties in raw material sources, such as processing sugar, sugarcane, and pineapple.

“We need to focus more on industrial cluster infrastructure, invest in developing supporting industries, and prioritize modern trade. The province's exhibition center to connect supply and demand of goods has been "conceived" for a long time but has not been able to be implemented. We suggest that the province pay attention" - Deputy Director of the Department of Industry and Trade suggested.

Western Nghe An transport infrastructure is receiving investment attention.

Concluding the meeting, Chairman of the Provincial People's Committee Nguyen Xuan Duong affirmed that this is an important project, therefore, he requested the Department of Planning and Investment to complete the document in the direction of focusing on reviewing and properly evaluating the effectiveness of programs and projects for the entire period. Based on the program, he pointed out some key tasks to implement the tasks in restructuring the economy, public investment, finance, and banking in a safe and healthy direction. Some contents related to equitization and restructuring of state-owned enterprises, especially agricultural and forestry farms, must be more specific and in-depth.

In addition, the work done related to the investment environment, production and business stability, and implementation of Resolution 26 of the Politburo has not been summarized in the report, so it needs to be supplemented. The tasks related to the implementation of the three strategic breakthroughs including administrative reform, perfecting the market economic institution, developing a synchronous and modern socio-economic infrastructure, and developing human resources must be presented with specific examples. In particular, the solutions must be detailed, closely following the policy, avoiding general statements.

Regarding the issue of economic restructuring, the Chairman of the Provincial People's Committee requested to promote agricultural restructuring in association with new rural construction. Prioritize the development of processing, manufacturing, and construction materials industries, attract high-tech industrial projects, information technology industries, and supporting industries, and improve product quality.

Thu Huyen