Improving the efficiency of public-investment projects is important to promoting socio-economic development. — Photo VGP

Inefficient State-owned enterprises must be handled this year, Prime Minister Nguyen Xuan Phuc has said.

This was the highlight of the PM’s recent plan to combat waste in 2020 by implementing financial discipline, preventing losses to the State budget, controlling the budget deficit and improving investment development.

Checks must be carried out to figure out existing problems at State-owned enterprises to handle them this year, the PM said, stressing that no State capital would be used to bail out loss-making enterprises and projects.

The decision said that thrift must be enhanced in the use of State capital together with applying advanced technology to improve quality and competitiveness as well as reduce production costs.

The restructuring of State-owned enterprises must also be accelerated, coupled with improving financial capacity and renovating corporate management, technology, production and development strategies to increase product quality and competitiveness, according to the decision.

Statistics from the Ministry of Finance released in December 2019 showed that as of the end of the 2018 fiscal year, there were 855 enterprises in which the State held stakes worth totally VND1.53 quadrillion (US$731.7 billion). Of them, 505 were wholly State owned.

Of note, 110 enterprises with State stakes reported losses in 2018.

The Prime Minister also asked relevant agencies to improve the efficiency of public investment, stressing that only feasible and efficient projects would be granted licences.

Ministries and local authorities must gear up public investment plans this year to select feasible projects for implementation.

The evaluation of public investment projects must be improved to prevent the continuous adjustment of capital required, according to the decision.

Viet Nam has set a goal of achieving gross domestic product (GDP) growth of 6.8 per cent this year. — VNS