Among 240 SOEs to be restructured between 2016 and 2020, the State will retain full ownership of only 103, maintain ownership of more than 50% at 31 and selling all stakes at the remaining 106. Proceeds from the sale of SOEs will be used to finance development investment, not regular spending.

According to the report sent to National Assembly deputies who are meeting in Hanoi at the moment, the nation’s total investments are expected to make up 32-34% of gross domestic product (GDP), or VND9,000-10,000 trillion. State investments, including those by SOEs, will fall sharply.

State investments in 2016-2020 would decline to 31-34% from 39.1% in 2011-2015 while non-State sector investments, especially private enterprises, are estimated to surge from 38.3% to 48%.

To meet funding demand for development investment, the Government will continue speeding up economic restructuring as envisaged in the economic restructuring plan from 2016 to 2020, Dung said.

The minister mentioned the issues that led to wastefulness in public investment projects. For instance, some projects were approved but their investment principle was not suitable with development goals of sectors or localities, resulting in low efficiency and inaction.

Besides, some investors failed to make good financial calculations and ensure feasibility. Therefore, they did not finish projects on schedule, and struggled with enormous cost overruns.

Source: thesaigontimes.vn