After Vinashin, SOE reform steals spotlight at NA sitting

Vietnam’s top leaders visit the Ho Chi Minh Mausoleum before the National Assembly opens its session in Hanoi on Wednesday - Photo: TTXVN HANOI – Prime Minister Nguyen Tan Dung in his address at the opening session of the National Assembly sitting on Wednesday said drastic measures would be taken to reform the State sector, especially after bitter lessons from the Vinashin scandal. Drastic reform Transparency and openness in the operations of State-owned enterprises (SOE) would be compulsory next year, Dung said, stressing that “State corporations and groups will have to undergo auditing and will be put on the competitive (business) environment.” The Government has instructed relevant ministries and agencies to review and improve the institutional environment for State-owned groups, and these economic organizations will have to focus on their core business operations, he told the eighth sitting of the NA. The Government leader said “this (reform of the State sector) will be the second most important task next year behind the task of improving the investment environment and business efficiency for the economy.” The NA will not have a special session to grill officials over the Vinashin scandal as earlier scheduled, but the Government has sent a detailed report on the case to NA deputies, Dung said. The case of Vinashin, which is on the brink of bankruptcy with total debts of some VND90 trillion (US$4.5 billion), is due to many reasons, including poor governance, dereliction of duty, and intentional wrongdoings. “The Government and ministries have partial responsibility in this (brinkmanship),” he said. Economy fares well In his report, PM Dung also gave an overview on the national economy, providing major indicators that show the economy has been faring well this year. The gross domestic product (GDP) growth rate is expected at 6.7% this year, or 0.2 percentage point higher than targeted, while the GDP per capita this year is expected at US$1,160. Export growth is estimated at 19%, or three times the estimate given at the beginning of the year. PM Dung said trade deficit would hover around US$13.5 billion, or lower than the targeted 20% of export value. The Government also cast an upbeat outlook for next year. Accordingly, the GDP growth rate for 2011 is predicted at 7%-7.5%, raising the GDP per capita by the end of the year to US$1,300. Export value for next year is targeted to rise 10% to some US$74.8 billion, while inflation is set at less than 7% compared to an estimated 8% for this year. A tight agenda for law-making At this sitting, which is scheduled to last until November 27, the NA is expected to pass nine laws and one resolution, and give suggestions on nine other draft laws. The laws to be ratified in the session include those on Environment Protection Tax, Inspection (revised), Administrative Procedures, Civil Servants, and Consumer Rights Protection. NA deputies will also pass amendments and supplements to the Law on Mineral, the laws on Insurance Business, Securities, and on the Election of NA Deputies and People’s Council Members. The deputies will also hear the Government’s report on Dung Quat Refinery, implementation of national programs during 2006-2010 period and consider projects to be funded by government bonds within the next five years. As this is the year-end session, the legislative body will also discuss the Government’s report on the realization of socioeconomic tasks in 2010, and the socio-economic development plan 2011.