Hanoi (VNA) – Shortcomings in terms of institutionsand laws are the main cause of the sluggish restructuring of State-ownedenterprises (SOEs), which may fail to fulfill many important targets by the endof 2020, according to the Central Institute for Economic Management (CIEM).

At a workshop in Hanoi on June 12, head of theCIEM’s department for enterprise reform and development research Pham Duc Trungsaid by the end of next year, SOEs are hoped to have a more reasonablestructure through equitisation and divestment of State capital.

Vietnam also expects to complete the divestmentof State capital from firms in which the State doesn’t need to hold capital,improve businesses’ performance, and thoroughly handle poor-performing andloss-making SOEs by the end of 2020.

Trung said although the targeted number ofequitised firms may still be reached, many important targets will be definitelyunable to be fulfilled, including the attraction of private investment in SOEs,and the investment of State capital divested from SOEs into the fields thatreally need the State’s presence.

Therefore, the target of a more reasonablestructure for SOEs hasn’t been reached, he said, adding that State capital isstill present in almost all business fields in the economy.

[ℱEquitisation of State-owned enterprises remains slow: official]

The State economic sector hasn’t clearly playedits role as the one that leads and creates momentum for economic developmentand is the important force for the State to orient and regulate the economy, hesaid.

Noting institutional and legal shortcomings thathave hampered the SOE restructuring, the CIEM official said the State’sownership and management haven’t been separated, posing risks of unequaltreatment and unfair competition in reality.

Additionally, the State’s investment insocio-economic development and serving other economic sectors is still mixedwith its investment in SOEs and SOEs’ investment.

Le Xuan Ba, an economic expert, said in theState economic sector, SOEs are the most crucial element but they haveperformed poorly. Meanwhile, these businesses are still considered to be themain force in the economy.

This viewpoint is wrong right from thebeginning, so the old mindset should not be sustained, he added.

Trung, from the CIEM, said to improve the Stateeconomic sector’s efficiency, Vietnam needs to detail the role of this sector,which should be tasked with ensuring the infrastructure system and essentialpublic services for activities of other economic sectors; ensuring defence,national security and a safe business environment; and equally and efficientlyallocating assets owned by the whole people to other sectors.

Economic expert Tran Tien Cuong said it isnecessary to increase using the State-issued macro-economic policies instead ofusing SOEs as a tool to regulate the macro-economy. SOEs should only be used asa support tool together with policies to regulate the macro-economy, and thisrole must be institutionalised and made transparent, he added.

Cuong also called for the enhancement of theState’s monitoring and auditing of its capital and assets, along with strongeranalysis, assessment, discovery and warning of SOEs’ problems.-VNA