Finance Minister Vu Van Ninh.

They claim that losses sustained are as a result of holding down prices of essential goods like electricity, coal, clean water and petroleum.

NA deputies discuss state-owned groups’ business

After reading the National Assembly Standing Committee’s supervisory report of the operation of state-owned groups and corporations, NA deputies researched the problems of state-owned groups. Many deputies expressed concerns over operations. Deputy Duong Trung Quoc wondered: “What do we expect from state groups and their key role in the economy when they are associated with so many problems?”

He said that according to the NA’s resolution, Vietnam must be an industrialised country in the next ten years. However, state economic groups are running ineffectively and rely too much on exploiting natural resources.

“Ten years is not long. I’m afraid that we can’t achieve our goal,” Quoc said.

Many deputies suggested “killing” loss-making economic groups and the government reducing its capital in some small state companies and instead privatise them.

However, the Finance Minister has a different view. He said state-owned groups have played their role well in the economy. In 2008-2009, when the Vietnamese economy faced crisis and recession, these groups had to accept losses to hold down prices.

Ninh says that after a long time suffering losses, in March 2009 the Electricity of Vietnam (EVN) group was allowed to raise its prices. While state groups in the fields of aviation, post and telecommunications have not been permitted to increase prices other organizations have.

The Vietnam Coal and Mineral Group recently received permission to raise prices at a restricted level. Food groups were asked by the government to buy rice for stock and maintain reasonable prices for farmers. The petroleum group had to accept losses for many years.

Minister Vo Hong Phuc.

“If EVN only invests in and sells electricity and other groups are not allowed to we create a state monopoly in electricity supply. Similarly, if only the Vietnam Post and Telecommunication Group offer telecom services, the telecom market is so competitive.” Phuc said.

Phuc said that when evaluating the effectiveness of state groups, it is necessary to see their role in fulfilling responsibilities. For example, they bring power to rural and remote areas and build roads and bridges and complete works that private enterprises wouldn’t want to do.

Answering the question whether the state can control its capital in these groups, Phuc said that the state should supervise groups to ensure they obey the law but not demand reports on every little day to day detail.

“If they (groups) have to submit every project to the Prime Minister and the Ministry of Planning and Investment for consideration and approval, they may lose opportunities because this procedure may take several months,” Phuc added.

VietNamNet/VNE