Restructuring crucial for economic development in 2015

Wednesday, Jan 07, 2015 08:30

A worker checks tins on a production line at the state-owned Viet Nam National Vegetable, Fruit and Agricultural Product Corporation's My Chau Printing and Packaging Holdings Co in HCM City. State-owned enterprises will focus on equitising and withdrawing capital from non-core businesses this year. — VNA/VNS Photo Dinh Hue

HA NOI (Biz Hub) — The restructuring of State-owned enterprises (SOEs), credit institutions, the securities market, and the farming sector are part of the socio-economic development measures formulated for 2015 and stipulated under Resolution 01/NQ-CP.

The resolution was recently issued by the government.

Ministries, agencies and localities have been requested to implement the overall plan on economic restructuring and submit their own well thought-out restructuring schemes to the authorities concerned by no later than the end of the second quarter.

SOEs will focus on equitising and on withdrawing capital from non-core businesses, while working on additional plans for post-2015.

In the meantime, credit institutions have been tasked with improving their governance, risk management, auditing and technological capabilities, while keeping up with international practices aimed at embracing Basel II capital standards step by step.

The restructuring of the securities market will continue in line with the government's blueprint set previously, making it easier to attract investment domestically and internationally and to deal with bad debts.

The farming sector's rearrangement is spread across cultivation, animal husbandry, aquaculture, and forestry, as well as processing and services. The new rural area construction programme needs to be ramped up for achieving new goals. Investors should be encouraged to get involved in agriculture and rural development.

Industries with a high level of technology, added value, and localisation rates will be boosted. This is especially true for the support industry, renewable energy, electronics, and engineering, as well as for the industries of information and biotechnology, oil and gas exploration and processing, and the environment, among others.

Under the resolution, Viet Nam will aim to achieve gross domestic product growth of 6.2 per cent, reach export growth of 10 per cent, maintain inflation at around 5 per cent, and reduce poverty rates by 1.7 to 2 per cent, as well as bring the bad debt ratio down to less than 3 per cent and create 1.6 million jobs in 2015. — VNS

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