State-owned enterprises urged to restructure

February 15, 2012 | 14:53

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State-owned enterprises are being compelled to slash their financial expenses and intensify restructuring in 2012, said Minister of Finance Vuong Dinh Hue.

Minister of Finance Vuong Dinh Hue

Hue said, “This year, the government has prioritsed economic restructuring with due attention to public investment, state-owned enterprises and the financial system in a bid to heighten the national economy’s efficiency and competitiveness.”

According to him, the restructuring of state-owned enterprises is a challenging task which requires a comprehensive and professional approach to management.

“In 2012, state-owned enterprises are being compelled to slash between 5 per cent and 10 per cent of their costs based on Government Resolution 1,” he noted.

As part of this effort, the Ministry of Finance and the Bao Viet Group held a seminar on February 14 on restructuring the finance insurance group.

The group plans to slash 5 per cent of its costs, worth VND145 billion ($6.94 million) in 2012 but will still ensure its targeted profit.

Hue shared that by the end of this week, the Vietnam National Textile and Garment Group (Vinatex) would follow suit and announce its roadmap to slash spending.

Electricity of Vietnam Group (EVN), the Vietnam National Shipping Lines (Vinalines) and Vietnam National Petroleum Corp (Petrolimex) are also obliged to make savings.

“By the end of the first quarter of this year, all state-owned enterprises will comply with the Government’s resolution on this issue,” he emphasised.

He added that tightening control over financial administration, especially slashing expenses, is of great importance in the context that banking interest rates could not be reduced immediately and the national inflation rate still remains high.

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