The proposal estimated that the sale of State holdings at State-owned and privatised enterprises like Mobifone, Viettel, Sai Gon Beer, Ha Noi Beer and Vinamilk would add approximately US$5 billion to the declining State budget.— Photo dunghangviet

HA NOI (VNS) —The Viet Nam Association of Financial Investors (VAFI) has advised the Government and the National Assembly to sell additional stakes in well-performing State enterprises and to offload more high-street real estate in order to immediately raise the State budget.

The proposal estimated that the sale of State holdings at State-owned and privatised enterprises like Mobifone, Viettel, Sai Gon Beer, Ha Noi Beer and Vinamilk would add approximately US$5 billion to the declining State budget.

The association added that Viet Nam had a big source of capital, albeit hard to utilise due to the long-lasting mismanagement at some State-run corporations.

VAFI said that such administrations were destroying the value of Viet Nam's assets.

"Management lessons provided by Vinashin and Vinalines, which the State had to pay roughly $7 billion to learn, definitely stand. If the Government stonewalls the sales, their asset values will collapse and they will have to make further borrowings to invest in the economy," VAFI General Secretary Nguyen Hoang Hai said.

Ha Noi and HCM City were urged to organise pioneering sales on high-street real estate to fund municipal traffic upgrades, such as city tram systems and anti-congestion measures. The estates samples include Daewoo, Rex, Caravell and Metropole Ha Noi.

In an attempt to raise more money, VAFI has proposed that the Government levy 20 per cent special consumption tax on the purchases of gold bars and gold jewellery. People and institutions will not have to pay tax for selling gold to the State Bank of Viet Nam at world price, however.

"This is the only single measure to end gold accumulation and dollarlisation. If the Ministry of Finance and the State Bank of Viet Nam take this measure, it will create an inflow of trillions of dong to the banking system and create forex stability. This measure will also help to bring interest rates for Vietnamese dong down to 3 per cent annually and to raise the State's foreign reserves to $60 billion," the proposal stated.

In addition, VAFI urged policy-makers to see the stock market as a capital source for the economy. — VNS