Vietnam Accelerates State Enterprise Restructuring
Posted on: Friday, 25 April 2008, 09:00 CDT
Vietnam accelerates state enterprise restructuring
HANOI, April 24 (Xinhua) -- Vietnam is speeding up restructuring state-owned enterprises (SOEs), including equitization of big corporations from now to 2010, local newspaper Vietnam Economic Times reported Thursday.
Vietnam is facilitating the restructure of state agricultural and forestry farms, and equitization of large state corporations and economic groups, including the Vietnam National Textile and Garment Group, the newspaper quoted a report presented by the country's Steering Board for Enterprise Renewal and Development at a national conference on SOE restructure on April 23.
Vietnam will also have specific policies and mechanisms designated for large SOEs and economic groups so that they will intensify investment in technology renewal, make their finance healthier, and focus on major business fields and avoid rampant investment.
Vietnam is to restructure 1,553 SOEs, including equitization of 950 enterprises in the 2007-2010 period, said the steering board. The country restructured 5,366 SOEs, of which 3,756 were equitized in 2007.
Of the SOEs equitized last year, 17 enterprises had capital of over 100 billion Vietnamese dong (VND) (nearly 6.3 million U.S. dollars) each, and some others, including the Bank for Foreign Trade of Vietnam (Vietcombank), the Vietnam Insurance Corporation and the Saigon Beverage Corporation had capital of more than 1,000 billion VND (62.5 million dollars) each.
"In the 2008-2010 period, we will equitize all 104 state corporations according to market rules, in attachment to listing their shares in the local stock market. We are also created favorable conditions for equitized enterprises to list shares abroad," Vietnamese Prime Minister Nguyen Tan Dung told domestic and foreign business leaders in January.
Vietnam, housing 6,000 SOEs in early 2001, had only 1,400 SOEs in late 2007, including over 400 plantations and more than 100 public utilities, he said, noting that most of equitized firms are operating effectively, and recording rapid growth.
(c) 2008 Xinhua News Agency - CEIS. Provided by ProQuest Information and Learning. All rights Reserved.
Source: Xinhua News Agency - CEIS
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