Undeserved favours for State-owned enterprises

Economists pointed out the problems of state-owned enterprises at an ongoing economic forum held in Danang. State-owned enterprises had a privilege of doing business whether they are making a profit or not When the Deputy Director of the Central Institute for Economic Management, Nguyen Dinh Cung, reported on the restructuring process of State-owned enterprises, he said that these economic institutions had a privilege of doing business whether they are making a profit or not, and that if their profits take a hit, ultimately everyone will suffer. Dr. Vu Dinh Anh clarified the five typical privileges of State-owned enterprises, including the absence of fear of going bankrupt because of State backing, even if they are operating at a deficit, the freedom of changing their State monopoly into a market monopoly, bureaucratic benefits, access to capital and credit and the lack of oversight. According to Anh, some of these privileges should to be analyzed more carefully, such as the right to impose import tariffs for essential goods and services, including petroleum, electricity, and water. He also criticised their ability to transfer debts to the State. Anh said that many SOEs have not served the public good, emphasising the investment strategies of many of these firms, which often invest heavily in non-core businesses, without living up to their main responsibilities. Tran Xuan Hoa, Chairman of Vietnam National Coal-Mineral Industries Group (Vinacomin), member of the National Assembly, refused to defend State-owned enterprises, but expressed some surprise at the allegations brought against them, saying that they play a crucial role in the use of natural resources and land use rights. He emphasised that, though many banks claimed to have reduced their interest rates, his corporation was borrowing at rates of 18.5%, while private enterprises had to bear rates of around 20%. Some subsidies in his corporation had been informed that land tax was increased by 10 times higher, which worsens the situation. Hoa proposed to Chairman of the Economic Committee, Nguyen Van Giau to hold another economic forum in Quang Ninh Province to discuss the coal and mineral industries. This proposition was approved by Giau, who committed that this event would be held before the launch of National Assembly's meeting in May.Forex News Travel to Vietnam | Festival Hue 2012 | Tour Festival Hue | Tour to Vietnam | Tour Ghep Mien Trung | Tour Trang Mat | Ebook | visit vietnam | Tour Du Lich 30 - 4 va 1 - 5 | How To Weight Loss | how to solve rubik | how to tie a tie | dac san hue | tourism vietnam Hoa said, "In four to five years, we will have to import coal, but many economists didn't expect prices to rise. Last year, our corporation had to compensate VND5,000 billion (USD239,693,192) for losses in our electricity business. If we don't take advantage of export prices now, it would pose a risk to national energy security." Despite Hoa's enumeration of the many difficulties faced by Vinacomin, some economists commented that it is fair for the titanium industry to be granted special privileges by the Government because of its role in the national economy.
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