Economic restructuring 2016 - 2020: Resolutely handling loss-making state-owned enterprises

(Baonghean.vn) - This afternoon (November 8), with 82.39% of votes in favor, the National Assembly passed a Resolution on the economic restructuring plan for the 2016-2020 period, which clearly stated that it would thoroughly handle loss-making state-owned enterprises and ineffective investment projects of state-owned enterprises.

Accordingly, the goal of the economic restructuring plan in the coming period is to gradually reduce the state budget deficit to below 3.5% of GDP by 2020. The scale of annual public debt in the 2016-2020 period will not exceed 65% of GDP, government debt will not exceed 54% of GDP and the country's foreign debt will not exceed 50% of GDP.

Improve the quality of public investment management institutions to reach the quality level of the four most developed ASEAN countries (ASEAN-4). The proportion of state investment is about 31 - 34% of total social investment.

Overview of the meeting. Photo: Anh Tuan

The Resolution also sets an annual target of 30-35% of enterprises engaging in innovation activities. The average annual labor productivity growth rate is over 5.5%, the intra-industry productivity growth rate contributes more than 60% to labor productivity growth in 2020. By 2020, the proportion of workers with certificates after 3 months of training will reach about 25%, the proportion of agricultural workers will decrease to below 40%.

Total factor productivity (TFP) contributes to average growth in the period 2016 - 2020 by about 30-35%. Narrowing the gap in national competitiveness with ASEAN-4.

By 2020, reduce the actual bad debt ratio in the economy to below 3%. Reduce the average domestic lending interest rate to be competitive compared to the average lending interest rate in the ASEAN-4 group. Enhance the scale and efficiency of the stock market, government bond market, and corporate bond market. By 2020, the capitalization of the stock market will reach about 70% of GDP, and the bond market will reach 30% of GDP.

In the period of 2016 - 2020, all State capital will be divested from enterprises in sectors that do not require the State to own more than 50% of capital, and State capital will be divested to the prescribed floor level for sectors where the State arranges and restructures investment capital. By 2020, there will be at least 1 million enterprises, 15,000 cooperatives and agricultural cooperative unions operating effectively.

One of the key tasks in restructuring the economy is to focus on completing the restructuring of three key areas: restructuring public investment, state-owned enterprises and credit institutions.

In particular, the Resolution clearly states "to thoroughly handle loss-making state-owned enterprises and ineffective investment projects of state-owned enterprises according to market principles and mechanisms; to consider and carry out state-owned enterprise bankruptcy according to the provisions of the law on enterprise bankruptcy".

The National Assembly also set out the task of enhancing the capacity of the Asset Management Company of credit institutions (VAMC) to buy and sell debts at market prices in conjunction with handling mortgaged assets, protecting the legitimate and legal interests of creditors, and allocating appropriate resources to quickly and completely handle bad debts. Handling and eliminating cross-investment and cross-ownership; promoting divestment of non-core capital of commercial banks.

Delegate Nguyen Thanh Hien - Deputy Head of the National Assembly Delegation of Nghe An province spoke at the hall. Photo: Anh Tuan.

During the working session this afternoon, the National Assembly also listened to Minister of Planning and Investment Nguyen Chi Dung read the Report on the draft Law on supporting small and medium enterprises (SMEs).

The Draft Law stipulates: "Every year, agencies and organizations supporting SMEs shall prepare budget estimates for the contents and programs supporting SMEs according to the provisions of this Law to be incorporated into the socio-economic development plan and the State budget estimate". The budget for implementing the contents and support programs will be incorporated into the socio-economic development plan to be balanced in accordance with the provisions of the State Budget Law.

However, the State limits direct support, mainly providing indirect support through intermediary organizations and individuals providing SME support services. Therefore, the State budget for SME support is to support the creation of common support infrastructure (developing incubators, etc.) or to provide initial investment as "seed capital".

In examining the draft law, the Economic Committee proposed to consider and supplement the regulation that SMEs must repay the support they have enjoyed when they violate the law on business support. At the same time, it stipulates a legal "stopping point" when the enterprise is strong enough to no longer receive support.

Also this afternoon, the National Assembly Deputies discussed in the Hall the draft Resolution amending and supplementing a number of articles of Resolution No. 55/2010/QH12 on exemption and reduction of agricultural land use tax. The Deputies said that the issuance of the Resolution on the one hand encourages people and organizations to participate in investing in agricultural and rural development. On the other hand, it also limits the current situation of farmers abandoning their fields, ensuring and strengthening state management of agricultural land use.

Speaking at the National Assembly Hall, Nguyen Thanh Hien, Deputy Head of the National Assembly Delegation of Nghe An province, suggested that the National Assembly consider and possibly only exempt agricultural land use tax for organizations investing in agricultural production in difficult areas without economic advantages./.

Duong Gim - Huyen Thuong