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NA aims to complete economic restructuring next year

Released at: 13:26, 29/11/2014

NA aims to complete economic restructuring next year

Legislature ends current session and issues resolution on public investment, SOE, and banking restructuring.

by Minh Tien

The 13th National Assembly (NA) wrapped up its 8th session on November 28 with the approval of a resolution on enhancing the effectiveness of economic restructuring in public investment, State-owned enterprises, and the banking system, with specific targets set for the end of 2015.

In terms of restructuring the banking and finance system, the NA set a target of bringing non-performing loans (NPLs) down to 3 per cent from the current 5.43 per cent. There was some anxiety over the feasibility of the target but the NA's Standing Committee was confident that the objective is consistent with the resolution on the socio-economic development plan in 2015.

The Standing Committee said that the Vietnam Asset Management Company (VAMC) had purchased nearly VND95 trillion ($4.46 billion) in NPLs and is handling them gradually. It also committed to continuing to improve the mechanisms at VAMC while promptly amending and completing legal provisions to remove difficulties and obstacles in resolving collateral management issues as well as developing a market for debt trading. At the same time, the NA will arrange for stronger and more frequent inspections of credit institutions to closely monitor cross-ownership and cross-investment issues and quickly handle violations in order to prevent risks from arising.

To improve the effectiveness of economic restructuring from now to the end of 2015, the NA asked the government to clarify targets, roadmaps and methods for allocating resources and mobilizing society for the task.

It is necessary to combine this restructuring with international economic integration as well as attach industrial and service restructuring to agricultural restructuring, the NA resolution states.

The NA also requires the government complete the ratification of restructuring projects for sectors and localities in the second quarter of 2015 at the latest, and facilitate scientific and technological application in production and business.

Based on the outcomes during 2011-2015, the government will build an economic restructuring plan for the 2016-2020 period for submission to the legislature at its 10th session in October 2015.

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