The National Assembly’s 12th legislature ended its month-long 6th session on November 27, with Chairman Nguyen Phu Trong describing it as a significant contribution to Vietnam’s reform.

NA Chairman Nguyen Phu Trong

In the session, Trong said, lawmakers envisioned major economic and financial plans for next year, and discussed 18 laws and amendments, including 11 bills that would be further debated in the next sitting.

Lawmakers agreed to implement measures in 2010 to reach a growth rate higher than the anticipated figure for 2009, effectively coping with the possible return of high inflation, maintaining political and social stability and fulfilling all the targets set for the 2005-10 period.

The NA endorsed a 2010 supervision plan which will focus on enforcing adopted policies on State property management inState-owned groups and corporations in which the State is a major stake-holder (the State normally holds around 46-49 per cent of the equity).

In the resolution realising this plan, the NA requested the Government to develop appropriate measures to handle lingering debts owed by State-owned enterprises; accurately appraise State company assets during their equitisation process, and provide a comprehensive in-depth analysis of the operation of State-owned groups and corporations.

Earlier in the session, the NA heard that half of the State groups and corporations operated with low efficiency and productivity, and that seven major entities owed total debts of VND287 trillion (US$16 billion) in 2008, an increase of 20.5 per cent over 2007.

In addition, the Government was asked to separate its rights of ownership in these companies from its administrative functions and respect the independence of the enterprises. At the same time, the Government will have to decentralise its power to an appointed co-ordinating body to be in charge of monitoring the use of State funding and the effectiveness of State company operations.

The NA yesterday demanded the Government assess the model of State economic groups and corporations to make the subsequent adjustments needed. Regulations and standards for a State group or corporation if they wish to expand their operations beyond their core business will be set.

Apart from ordinary business functions, State groups and corporations are expected to be financially strong enough to work as an effective Government tool to regulate the macro-economy if necessary, according to the resolution.

The NA also asked the Government to specify the rights and responsibilities as well as benefits and punishments applied to management boards, chief executive officers and other senior managers of State groups and corporations in relation with business operations under their patronage.

State groups and corporations are now required to make regular business reports based on defined criteria in order to facilitate State inspection and supervision.

Viet Nam currently has 90 State-owned corporations and groups which contributed 40 per cent of the national GDP in 2006-08. But the inefficient management of capital and State assets has reduced their productive potential, according to an official report released during the NA’s 6th session. LookAtVietnam

Yesterday the NA also decided to next year properly enforce the policies on founding new schools, ensuring the tertiary education sector’s training quality and bureaucratic problems in the areas directly involved with businesses and the public as part of the State’s larger administrative reform scheme for 2001- 10.

The 7th session of the NA’s 12th legislature is scheduled to start in May, 2010.

VietNamNet/VNS