There remain shortcomings in management of State-run groups and corporations though their production capacity and operational efficiency have been improved.

At a factory of food processing joint-stock corporation Safoco under the Food Company of Ho Chi Minh City.

The Government has released the statement in its review of financial and operational situations of 81 among 91 State-run groups and corporations from early 2009 to June 2010.

The report said due to unclear responsibilities for management, wrongdoings in management and use of State funds and properties were detected only when there were complaints, denunciations or inspections.

According to the Government, these groups invested a huge amount of State capital in joint stock commercial banks, and securities, insurance and real estate companies, but the investment was ineffective in short-term.

They invested outside of its core business despite having limited capital resources.

The Government admitted that it has yet to use sanctions and strictly deal with enterprises that have made inadequate reports about their business activities or committed wrongdoings continuously for many years.

Poor leadership qualities of State-run groups’ heads caused continuous losses to the groups but management boards and general directors haven’t been punished, the Government said.

The 81 State-owned groups had a total capital of VND572.58 trillion (US$26 billion) by June 2010.

Their turnovers reached VND732.76 trillion (US$33.3 billion) in the first half of this year, representing 58.6 percent of the year’s target, while they made profits of VND43,86 trillion, equal to 51 percent of the year’s plan.

During the reviewed period, 16 State-run groups and corporations invested US$4 billion overseas.

Source: SGGP