Prime Minister Nguyen Tan Dung and Deputy Prime Ministers Nguyen Sinh Hung, Hoang Trung Hai and Nguyen Thien Nhan spent a whole day listening to and discussing measures to prevent economic slowdown in 2009.

Don’t force us to stabilize prices anymore

The biggest concern of officials from State-owned groups and corporations is where the $1 billion stimulus package will flow to achieve the goals of preventing economic downturn, ensuring stable jobs for 43 million workers, and maintaining the growth rate.

While stating that it will be difficult to change the situation if the stimulus package focuses on big projects, the Chairman of the Vietnam Textile and Garments Group (Vinatex), Le Quoc An, took advantage of the meeting to request that the Government assist the group to pursue canceled high-class cloth producing projects.

A representative of the Vietnam Shipping Lines Group (Vinalines) said that the capital is not enough to funnel both big and small enterprises, so Vinalines “asks the Government to extend the debt payment deadline for two projects to build 32 ships with the Vietnam Shipbuilding Industry Group (Vinashin).”

Vinalines also proposed a loan guarantee mechanism, or bond issuance, or the accession to sources of official development assistance (ODA) to build the Lach Huyen Port (which was canceled owing to Japan’s suspension of ODA grant) and Van Phong port.

An official from the Vietnam Steel Group, Dau Hung, said: “Please do not force us to continue stabilizing prices because we have maintained these prices since 2002. Our reserve has gone out. We propose the Government to provide more capital for us to do big projects.”

Prime Minister Nguyen Tan Dung said that steel is not on the list of ten products that need price stabilization and the group could sell steel as it wants.

Boasting that the Vietnam Railways Corporation is well implementing many projects, but the corporation’s General Director Nguyen Huu Bang lamented that this year the corporation incurred losses because the sale of bed tickets fell.

He said that once the government delays or extends debt payment, it should not give priority to just small- and medium-enterprises, but State-owned enterprises as well.

An official from the Vietnam Petroleum Import-Export Corporation (Petrolimex) also said that State-owned enterprises have a key role and need to work side-by-side with the Government to implement eight groups of solutions to curb inflation. The five groups of solutions to prevent economic downturn in 2009 are more socially meaningful, so the participation of small- and medium-sized enterprises is needed.

Prime Minister Nguyen Tan Dung affirmed: preventing crisis is the task of the whole society and State-owned enterprises still have to take a key role. The government treats economic sectors on an equal basis.

Committing jobs for everyone

Representatives of State-owned groups said that their projects will run well if they are invested in by the stimulus package. They are also committed to fulfilling goals set for 2009, which will be higher than the goals for 2008. Moreover, they promised not to lay off any workers.

Vinatex’s Chairman, Le Quoc An, confirmed that the top priority is maintaining jobs for textile-garment workers. The Chairman of the Coal and Mineral Group, Doan Van Kien, also confidently said that no laborer lose his/her job.

State-owned corporations and groups all said that they would together to assist the 61 poorest districts in 20 provinces, as listed by the Government.

The General Director of the Bank for Investment and Development of Vietnam (BIDV), Tran Bac Ha, said State-owned groups and corporations could contribute around VND 4 trillion ($235.294 million) in two years, and the government should assign each State-owned group and corporation to assist one poor district.

The Vinatex Chairman suggested the government should work in the same way as other countries: directly pouring the stimulus package to each needy person. “If the people are supported, the textile and garment sector can sell some more clothes during the Tet holiday,” he said. An’s idea made all attendants burst out laughing.

Crisis: opportunity for investment

Satisfied with statements by State-owned groups and corporations, Prime Minister Nguyen Tan Dung said: “Many forecast that State-own enterprises would be in trouble in 2008, but actually we did a good job. State-owned enterprises still contribute 40% of the GDP. Key economic fields still grow well. Revenue, profit, capital and tax payment all increased.”

However, the Prime Minister asked State-owned enterprises to make detailed plans to prevent economic slowdown.

As a representative of Vinalines said, the maritime industry has experienced many periods of regression, but it has never been as difficult as in the present time. The shipping fees of cargo from Brazil to China dropped from $100 per ton in the past, to $60 at present.

The Prime Minister called State-owned enterprises for taking advantage of the local market, bringing their guidance roles fully into play.

He said economic crisis is an opportunity for investment, quoting Vietnam Airlines’ purchases of four Boeing 777 in 1998 at the two-thirds the normal price.

He also said that ministries, agencies and enterprises must urgently shortlist necessary projects to submit to the government. The Prime Minister will approve and submit to the National Assembly Standing Committee and the Committee will issue resolutions permitting the Board of Directors of State-owned groups to appoint contractors for these urgent projects.

Most representatives of State-owned groups and corporations asked the government to give them more autonomy in implementing projects. “It is necessary to give more power to Boards of Directors. Housewives can immediately buy fresh vegetables at the market, but men can not buy fresh vegetables because they have to return home to ask for their wives’ permission,” said the General Director of the Vietnam Railways Corporation.

Both the government and State-owned enterprises need to take strong and quick measures to prevent spreading economic slowdown.
Source: Vietnamnet