Prime Minister Nguyen Xuan Phuc at MOIT’s conference on six-month review pointed out that the ministry is ‘bulky’ and ‘insufficient’ which leads to problems in personnel and slow equitization.
The Thai Nguyen steel & iron corporation
He asked the ministry to immediately undergo a restructuring process to serve production and development and adapt to new circumstances of global integration.
MOIT is in charge of making industry and trade policies and managing 11 state-owned economic groups and general corporations.
A series of projects developed by the powerful enterprises have become ‘famous’ in Vietnam because of their inefficiency and big losses.
The project on expanding Tisco, the Thai Nguyen steel & iron corporation, is a typical example. Having huge investment capital of VND8.1 trillion, enjoying many investment incentives, including special policies allowing Tisco to restructure debts, the project remains unused after 10 years of investment.
The other projects, including three ethanol plants developed by PetroVietnam, the fertilizer plant by Vinachem, are in the same situation. They have raised anger among the public as trillions of dong worth of state’s capital have been lost because of mismanagement.
The common feature of the ineffective projects is that they were initiated in the period from 2007 to 2016, when Vu Huy Hoang was MOIT’s Minister.
|Experts have urged the Ministry of Industry and Trade to reform its administrative structure as it now takes on too much work that is outside its purview. |
He went on to say that the attendance of the Prime Minister at a ministerial 6-month review conference showed that the government has seen problems for a long time at MOIT.
Former MOIT Minister Vu Huy Hoang was said to have made an unreasonable decision of appointing his son, Vu Quang Hai, to the post of deputy CEO of Sabeco, a brewery belonging to Sabeco which holds the largest domestic beer market.
Before taking office as deputy CEO of Sabeco, Hai was CEO of PVFI, a finance company which took losses for two consecutive years under his management.
The controversial appointment, plus a series of other problems, have been brought to light recently.
Sharing the same view with Tho, Dr Bui Quang Binh from Khoa Hoc Kinh Te (economic studies) Journal said: “MOIT takes on too much work which is not its.”
“Managing enterprises, universities and junior colleges must not be the job of MOIT. MOIT still cannot do the state’s management in industry and trade – its major task – well,” Binh said.