State giants play their part

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In light of Resolution 11/NQ-CP dated March 1, 2011 presenting measures to stabilise the macroeconomy and bridle inflation, state-owned corporations and groups announced their proposed delays and progress extension of 907 projects capitalised a total VND39 trillion ($1.88 billion).

According to Ministry of Planning and Investment’s (MPI) report, among state-owned corporations and groups to have significantly trimmed their investments were Electricity of Vietnam (EVN) with over VND12 trillion ($579.7 million), Vietnam National Oil and Gas Group (PetroVietnam) over VND6.6 trillion ($318.3 million) and VNPT Group VND3 trillion ($145 million).

Some businesses saw a large percentage of retrenched investments such as Saigon Water Supply Corporation with 50.6 per cent and Vietnam Maritime Corporation 38.4 per cent.

Director of Central Institute of Economic Management (CIEM) Le Xuan Ba suggested increasing inspection and keeping close eyes on the projects subject to delays or progress extension by these corporations and groups.

From another angle, head of MPI’s Department of National Economic Issues Bui Ha assumed that state-owned businesses’ decisions on cutting investments would be based on their internal strength, capital mobilising capacity and investment efficiency on the heels of spiraling costs.

“It was totally different from state decisions on curtailing public investments towards projects sourcing state budget and government bond capital when investment capital will then be transferred to more priority projects,” Ha said.

Economist Le Dang Doanh agreed to the importance of enhancing information transparency in curtailing public investments. According to Doanh, it was important to make public the list of projects incurring delays or progress extension for general supervision by the community.

In 2008, pursuing Decision 390/2008/QD-TTg dated April 14, 2008 to curb inflation many state-owned corporations and groups made public their investment retrenchments of over VND34 trillion ($1.64 billion).