VietNamNet Bridge – Complaining about difficulties in 2013, most state-owned economic groups asked the Prime Minister for a specific mechanism.

State-owned groups report losses of nearly $62 billion to the PM

Mr. Le Minh Chuan, General Director of the Vietnam Coal and Mineral Group.

Asking for the government’s support was still the message of many state-owned groups and corporations, which are compared to “the steel fist” of the economy, conveyed at the meeting with the Prime Minister on January 16. The reason given is that in the context of difficulties, the state should continue to support big SOEs to perform their big tasks.

Mr. Le Minh Chuan, General Director of the Vietnam Coal and Mineral Group (Vinacomin) complained of the sharp decline in coal output and exports in both volume and price in 2012. However, the group still ensured stable job for workers, with monthly income of VND7.4 million ($300). The group also undertook many major projects like the Tan Rai bauxite, with about 100 tons of alumina to be marketed.

Talking about the 2013 plan, the coal industry leader said that the market would continue to experience difficulty due to the reduction of the industries that use coal.

"The Government should continue to support Vinacomin in the roadmap of coal prices for the electricity sector, the natural resource tax and VAT refund for exported coal, as well as in foreign loan guarantee," said Chuan.

Vinaconex’s Chair Nguyen Thanh Phuong also said that 2012 was a very difficult year for the real estate market. “This year will continue to be difficult, especially the inventory status," he said.

However, Phuong still proposed that in 2013 Vinaconex will continue invest in several national key projects. "We set a target of earning VND23-25 trillion in revenue and VND1.5 trillion of profit", Phuong added.

Mr. Pham Viet Thanh, Chair of Vietnam Airlines, committed to restructuring the organization to reduce the cost of production. At the same time, he also enlisted "for" specific mechanisms, especially in access to land.

Thanh said that by 2015, 80 percent of the pilots would be Vietnamese, compared to 56 percent at present. The corporation will expand international routes, such as South Korea - Da Nang. At the end of the first quarter of this year Vietnam Airlines will open the Moscow - Cam Ranh route.

Adjusting the rights to State-owned groups and corporations

Vinaconex’s Chair Nguyen Thanh Phuong.

The Government has issued a decree on the assignment of the rights, responsibilities and obligations of state ownership of SOEs and state capital invested in enterprises. According to the Ministry of Planning and Investment, the power of the Prime Minister with State-owned groups and corporations is adjusted.

Accordingly, the Prime Minister directly performs four important rights of the ownership, mainly related to the strategic decision to long-term development; the decision on the establishment, re-organization, the charter capital and the change of charter capital, the appointment of the chair of the board members, approving the production plan and the 5-year investment plan, etc.

The number of State-owned groups and corporations directly managed by the Prime Minister decreases from 21 to 9 groups and one corporation, including: the Electricity of Vietnam, the Vietnam Oil and Gas Group, the Vietnam Coal and Mineral Industry Group, the Vietnam Post and Telecommunications Group, the Vietnam Shipbuilding Industry Group, the Vietnam Textile and Garment Group, the Military Telecom Group, the Vietnam Chemicals Group, the Vietnam Rubber Group and the State Capital Investment Corporation.

The Decree also gives more power to ministries.

Le Nhung