CMSC expects ADB to support SOE development

ADB Deputy Chairman Ahmed Saeed thanked the CMSC for taking time to receive the delegation, and said Vietnam is the first country he visits and works after being appointed.

Ahmed Saeed highly appreciated Vietnam’s recent socioeconomic development achievements. Vietnam continues to maintain high economic growth in the context of prudent fiscal management and stable inflation, he said, adding that Vietnam is asserting its position in regional and global value chains.

ADB Deputy Chairman Ahmed Saeed

Ahmed Saeed said that over the past few decades, the ADB has supported the Vietnamese government by financing 173 programs/projects with a cumulative loan of more than US$16 billion and providing Vietnam with non-refundable aid worth over US$340 million. In the new development phase of Vietnam, the ADB has thought of new scenarios and directions, wishing to support the development of state-owned enterprises (SOEs).

According to Ahmed Saeed, SOEs are important to the development of Vietnam’s economy as it is a way to remove the middle-income trap. With the support of the ADB, Vietnam will tap the potential of SOEs. In addition, the ADB is also a multilateral development bank with full of necessary skills and tools to further promote the development of the sector.

Ahmed Saeed said he has many years of experience working in the fields of businesses directly under the CMSC. In addition, his experience working with US government policy makers helps him understand more the role of SOEs and the relationship between the government and SOEs. He is looking forward to hearing from the CMSC about the commission’s priority areas in the near future.

CMSC Deputy Chairman Ho Sy Hung

CMSC Deputy Chairman Ho Sy Hung expressed his impression on knowledge and experience of ADB Deputy Chairman Ahmed Saeed. “We love to accompany friends like the ADB and other financial organizations in the SOE development project. During the past time, we have received a lot of valuable support,” Hung said, adding that the biggest concern is to increase transparency and improve administration of businesses directly under the CMSC. The commission attaches great importance to the issue because the government, organizations and people are willing to support businesses if they have trust in the serious operation of businesses, Hung said.

According to Hung, infrastructure, energy and transport are the CMSC’s priority areas.

Ahmed Saeed said transparency and administration are very important in other countries. They have developed an overview picture on healthy credit to overcome the issue, and Vietnam has also implemented this measure. It is necessary to identify gaps, causing pressure on SOEs. Management agencies will require businesses to seek investment serving their trade and production activities, forcing them to increase transparency and ensure financial capacity. In this process, the ADB may support a number of activities.

Ho Sy Hung and Ahmed Saeed also discussed about the CMSC’s vision, model, operational structure and strategic tasks. The two sides shared innovative ideas in administration, contributing to realizing the goal of increasing transparency of the business.

Ho Sy Hung affirmed that the CMSC always needs ADB’s support in SOE development.