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Construction corporations to be equitised within three years

Update: June, 18/2012 - 14:17

HA NOI – The Ministry of Construction announced plans to equitise eight State-owned enterprises, of which four are general corporations established in the 1990s and four others are corporation member companies.

Once equitised by the target date 2015, the State will hold 65 per cent of charter capital of Viet Nam National Construction Consultants Corporation (VNCC) and more than 50 per cent each of Construction Company No 1 (CC1), of Building Materials Corporation No 1 (FICO) and Viet Nam Urban and Industrial Zone Development Investment Corporation (IDICO).

IDICO will hold more than 50 per cent of the charter capital of the to-be-equitised Urban and Industrial Zone Development Investment Ltd (IDICO-UBIZ). Meanwhile VNCC will keep more than 50 per cent of Union of Survey Company Ltd (USCo).

In the meantime, the ministry asked the corporations and their member companies to solve debt problems and restructure capital.

Deputy Minister Tran Van Son said there remained difficulties in equitisation since the targeted enterprises were of large scale with investment capital scattered in businesses across the country. Equitisation therefore would take time, he said.

Between now and 2013, the enterprises had to focus on restructuring member companies and sparing capital for major investment fields in order to smooth the operations of the equitised corporations and companies.

However, the sales of the shares of the equitised enterprises with big volumes would not be an easy task, particularly at a difficult time for the stock market.

To facilitate the equitising process, the Construction Ministry proposed that the Government announce appropriate regulations in appraising business properties in industrial zones and residential areas; valuing land use rights of areas allocated to build accommodation for workers in industrial zones.

Regarding equitisation policies applying for those specialising in consultant and training services, the ministry asked for a modification to encourage high quality staff to continue working for a business after equitisation. – VNS

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