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VietNamNews

SOE reforms chalk-up several wins

Update: June, 12/2012 - 10:22

DA NANG — The process of restructuring State-owned enterprises has revved up in the past six years and seen some notable initial successes, said the deputy CEO of the State Capital Investment Corporation (SCIC), Le Song Lai, addressing the closing day of the Viet Nam Investment and Banking Conference in Da Nang on Saturday.

"The SCIC was assigned by the Government six years ago to aid in the effort of restructuring State-owned enterprises," said Lai. "We have acquired shares in 936 equitised enterprises worth a total of VND7.5 trillion (US$355 million) since 2006, and we have sold our interests in 541 businesses at cost at a value of over VND3 trillion ($143 million)."

He also said the Government would diversify its holdings in State-owned enterprises (SOEs) and build up a supervisory regime to manage businesses more effectively.

"We will strengthen the transparency of SOEs, which has been a weak point," Lai said, noting that equitised firms would be required to list shares and comply with stricter disclosure requirements applicable to listed firms within six months. "The Government will also stop the establishment of new groups as well as speed up the equitisation process in order to stabilise the country's economic growth."

The number of SOEs nationwide has fallen from 12,000 in 1991 to about 1,300 enterprises in 2011, representing a total State investment of VND659 trillion ($31 billion). While 573 more have been targeted for equitisation by 2015, only six have been equitised so far this year. — VNS

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