Improving the efficiency of public-investment projects is important to promoting socio-economic development. (Photo: VGP)

This was the highlight of the PM’s recent plan to combat waste in 2020 byimplementing financial discipline, preventing losses to the State budget,controlling the budget deficit and improving investment development.

Checks must be carried out to figure out existing problems at State-ownedenterprises to handle them this year, the PM said, stressing that no Statecapital would be used to bail out loss-making enterprises and projects.

Thedecision said that thrift must be enhanced in the use of State capital togetherwith applying advanced technology to improve quality and competitiveness aswell as reduce production costs.

Therestructuring of State-owned enterprises must also be accelerated, coupled withimproving financial capacity and renovating corporate management, technology,production and development strategies to increase product quality andcompetitiveness, according to the decision.

Statisticsfrom the Ministry of Finance released in December 2019 showed that as ofthe end of the 2018 fiscal year, there were 855 enterprises in which the Stateheld stakes worth totally 1.53 quadrillion VND (731.7 billion USD). Of them,505 were wholly State owned.

Of note, 110 enterprises with State stakes reported losses in 2018.

The Prime Minister also asked relevant agencies to improve the efficiency ofpublic investment, stressing that only feasible and efficient projects would begranted licences.

Ministries and local authorities must gear up public investment plans this yearto select feasible projects for implementation.

The evaluation of public investment projects must be improved to prevent thecontinuous adjustment of capital required, according to the decision.

Vietnamhas set a goal of achieving gross domestic product (GDP) growth of 6.8 percentthis year./.VNA

Twelve SOEs report losses in 2019

The Ministry of Finance has revealed that twelve out of 136 wholly state-owned enterprises had posted losses of $31 million in the first half of last year, and six others faced warnings regarding financial security.

Building credit: How SOEs can get foreign financing for infrastructure

State-owned enterprises (SOEs) face unique challenges when it comes to attracting foreign financing for infrastructure projects. But there are solutions.