WB ready to assist Vietnam in reforming State businesses

The World Bank (WB) is willing to assist Vietnam in reforming State-owned enterprises (SOEs), WB Country Director for Vietnam Ousmane Dione told Deputy Prime Minister Vuong Dinh Hue.

Deputy Prime Minister Vuong Dinh Hue (R) receives WB Country Director for Vietnam Ousmane Dione (Photo: VNA)

At their working session on December 13, Ousmane Dione said the WB will further discuss with Vietnamese ministries and agencies issues relating to the equitisation of State businesses and make specific recommendations for the Vietnamese Government.

WB experts suggested SOEs should mainly operate in important fields pertaining to security and defence. They emphasised the need to balance the accountability and independence of the agency representing the State ownership in relations with economic groups and State management agencies.

Several experts recommended that all small and medium-sized State enterprises be equitised while major corporations and groups be equitised partly in order to help the State achieve its goal of improving business administration, increasing profits and monitoring enterprises’ operation on the stock market.

Deputy PM Hue said Vietnam is accelerating a project on restructuring SOEs for the 2016-2020 period.

After fifteen years, the number of SOEs has dropped to 718 from the previous 6,000, he said, admitting that despite the reduction, the rate of equitisation remains low, at only 8% of the total State capital at present.

Deputy PM Vuong Dinh Hue said the WB’s recommendations will help Vietnam put forth proper policies to reform State businesses and called on the bank to offer more technical assistance in the field.

The WB also pledged to continue supporting Vietnam’s efforts in economic restructuring and investment in socio-economic development projects.

(Source: NDO)