Viewed from the perspective of… debt
The total debt of state-owned enterprises (SOEs) amounts to 1,008,000 billion VND. This figure has attracted public attention in the context of the ongoing SOE restructuring.
The total debt of state-owned enterprises is 1,008,000 billion VND, while their equity is only 790,000 billion VND. This figure was confirmed by Minister of Planning and Investment Bui Quang Vinh in a program."The people ask - the minister answers"In early July, this further fueled public doubts about the debt repayment capacity of the state-owned enterprise sector.
The plan for restructuring state-owned enterprises (SOEs), focusing on state-owned economic groups and corporations, for the period 2011-2015 was approved by the Prime Minister under Decision 929/QD-TTg. However, the process of equitizing SOEs remains very slow.
According to Dr. Nguyen Dinh Cung, Deputy Director of the Central Institute for Economic Management Research, the reason for the slow pace of equitization is the lack of motivation and pressure to force state-owned enterprises and their managers to calculate and consider opportunity costs. The fear of risk, waiting, or procrastination still outweighs efforts, innovation, and the swift divestment of non-core investments to focus on core business activities. Dr. Cung stated:"If the goal of privatization is to raise capital, then there's not much hope for the coming years.".
According to the Steering Committee for Enterprise Reform and Development, in 2012 and the first five months of 2013, 28 proposals on mechanisms and policies to support the restructuring and reform of state-owned enterprises were submitted to the Government. |
Reforming state-owned enterprises (SOEs) is an essential requirement, but the price to pay is not small. This involves resolving the enormous debts of large corporations such as Vinashin, Vinalines, and Song Da, as well as the bad debts of all SOEs, which account for approximately 50% of the total bad debts in the entire system. This directly impacts vested interests. The divestment of state-owned corporations and enterprises from securities, investment funds, insurance, banking, and real estate is facing many difficulties, despite the government's requirement that divestment in these "sideline" sectors be completed before December 31, 2015.
State-owned enterprises (SOEs) have a very significant impact on the banking system and total public investment. Because Vietnam's public investment comes from the state budget and bonds, investment in SOEs accounts for a considerable proportion, with budget investment alone representing 19% of GDP. Therefore, without reforming SOEs, the country will continue to suffer from poverty. Without strong political will and the right vision, restructuring SOEs cannot be achieved.
Vietnam's growth is slowing down; in the first half of 2013, GDP increased by only 4%."Vietnam's long-term growth will be affected by the slow and ineffective implementation of reforms, including the restructuring of state-owned enterprises."- Dr. Deepak Mishra, Chief Economist of the World Bank in Vietnam, warned.
According to baocongthuong - PH
