State businesses form the core of economy

Mr Dung made the statement at a working session with leaders of more than 100 economic groups and corporations in Hanoi on March 10.

The PM confirmed that these businesses form the core of the economy as they joined government efforts last year to help the country weather an economic downturn, stabilise the macro economy, maintain reasonable growth and ensure social welfare.

PM Dung pledges to iron out snags for economic groups and corporations

Despite difficulties, he said, these businesses made up 42 percent of the country’s GDP and none of them went bankrupt. Many businesses topped their annual revenue and pre-tax profit targets by 42.4 and 52.8 percent, respectively. Their budget collections increased by 40.5 percent, their debt/equity ratio was 1.67 and their monthly income per capita reached VND5.6 million on average.

Among them, the Vietnam Coal and Mining Industries Group met domestic demand for coal and did not hike its retail prices for its key consumers such as electricity, paper, cement and fertilizer sectors. Meanwhile, the Northern and Southern Food Corporation exerted efforts to buy rice from farmers at a reasonable price to stabilise the rice market. 

These businesses focused on key production areas and addressed shortcomings in capital construction by investing in key big projects to make full use of the capital.

“These groups and corporations not only paid special attention to maintaining production but also took part in ensuring social welfare, fulfilling important political tasks entrusted to them by the Party and State,” said Mr Dung.

The businesses did not lay off employees, generated stable incomes and better carried out other social welfare programmes. They also got involved in a government programme to assist 62 poor districts and ensure stable incomes for rice, rubber and coffee farmers.

The PM called on economic groups, corporations and other businesses of all economic sectors to meet this year’s targets of achieving a GDP growth rate of 6.5 percent and keeping inflation at 7 percent.

To meet the goal, these groups and corporations must draw up effective business strategies to obtain an average growth rate of 10 percent in 2010, he said.

According to the PM, these businesses should re-examine their production plans to increase operational efficiency and competition. He urged them to stand shoulder to shoulder with the government to stabilise market prices, rein in inflation, carry out poverty reduction projects and take part in charity campaigns.

The government leader confirmed that this year coal and electricity prices will be kept stable while foreign exchange and bank interest rates will be adjusted flexibly in line with market fluctuations.

He proposed that State businesses buy rice from farmers and expand their distribution network to regulate the market and help farmers earn high profit. The government will work with coffee businesses to ensure Vietnam remains the second largest coffer exporter in the world.

He reminded them to speed up business restructuring, improve management capacity, and hold regular dialogues with ministries to facilitate their production.