"The role of state-owned enterprises (SOEs) is to help the government make macroeconomic regulation, correct market flaws, support economic reforms as well as develop infrastructure, and beef up national defense and security. This research aims to evaluate their role in the aforementioned groups of objectives based on four aspects, namely institution, development strategies, management and industry structure of SOEs, thereby determining the aspects to be restructured. The research result shows that SOEs have been playing well their role of making macroeconomic regulation and repairing market flaws, due to their big share in investments and involvement in numerous industries. However, they have not performed well in economic reforms in terms of mobilizing external capital, facilitating input conditions for other industries, maintaining economic growth, and improving the balance of trade. Even worse, they have produced crowding–out effects on other sectors. The success and drawbacks of SOEs stem from the following aspects, namely institution, development strategies, management and structure of industry. Based on their achievements and shortcomings, the research proposes
restructuring SOEs in such a way that maintains their capacity to make macroeconomic regulation, correct market flaws, and improves their role in economic reforms, national defense and security. The restructuring should be conducted on four aspects: institution, development strategies, management and structure of industry."
Restructuring, State-Owned Enterprises (SOEs), Institutional Environment, Macroeconomic Regulation, Market Flaws, Economic Reforms.