Permanent Deputy Prime Minister: If a project cannot be recovered, it must be declared bankrupt and dissolved.

Permanent Deputy Prime Minister Truong Hoa Binh speaks at the meeting. Photo: VGP/Le Son

Attending the meeting were Chairman of the State Capital Management Committee at Enterprises Nguyen Hoang Anh; leaders of relevant ministries, branches and corporations.

Speaking at the opening of the meeting, Deputy Prime Minister Truong Hoa Binh stated: The 9th meeting of the Steering Committee discussed the situation and progress of handling slow-progressing and ineffective projects and enterprises in the Industry and Trade sector, thereby assessing and clearly identifying difficulties and problems and proposing solutions for each project and enterprise in 2020.

Therefore, the Permanent Deputy Prime Minister requested the members of the Steering Committee to frankly clarify major issues such as specific results, the most current difficulties and obstacles of each project, enterprise and solutions, especially legal problems related to EPC general contractors and financial and credit solutions. The general spirit is to respect the principle of autonomy and self-responsibility of enterprises. Handling disputes between investors and contractors, general contractors, foreign elements, investments that are no longer suitable in terms of technology, law in handling procedures... Thereby, it is necessary to clarify which agency is responsible for what, what is the mechanism?

Regarding the specific handling direction for each project and enterprise, the Deputy Prime Minister pointed out: The Prime Minister has approved Project 1468, however, through the report of the State Capital Management Committee at enterprises, some options have completed the initial handling direction but the next implementation step is no longer suitable and feasible, some options offer many implementation options depending on the situation so the progress and handling deadline have not been determined, so now it is necessary to decide on a plan to handle it completely.

In that spirit, the Deputy Prime Minister asked the delegates to give their frank and direct opinions on the handling of each project as proposed by the State Capital Management Committee at Enterprises, and to assess whether such handling is really feasible, optimal and consistent with the direction of competent authorities, and whether it ensures the highest interests of the State, the interests of workers, and stabilizes the production and business environment of enterprises. Which projects need to continue to be restructured for recovery, and what measures can the State support to have a feasible plan? Which projects need to be urgently and resolutely handled, suspended, or bankrupted to avoid causing damage to the State?

According to the Permanent Deputy Prime Minister, the consistent viewpoint of the Politburo and the National Assembly is to resolutely not provide additional capital to these projects and enterprises. However, the handling process will inevitably require costs to handle the project, restructure and recover... So what is the solution to this problem?

"Any project that cannot be recovered must be resolutely dissolved or declared bankrupt. Do not say in general that it is getting better but in reality it is still losing money, sometimes even losing heavily. The more we handle it, the more capital we lose," the First Deputy Prime Minister emphasized.