Friday, October 28 2016


Good locations should remain with the State

Update: June, 10/2015 - 08:00
People visit the Dam Sen Park in HCM City. City authorities have not approved an equitisation plan for the park because they do not want to lose control over prime locations. — VNA/VNS Photo Van Huan

HCM CITY (VNS) — The performance of former State enterprises post-equitisation and how HCM City-based firms are preparing to equitise was discussed at a meeting on Monday between the city leader and officials from related departments and State-owned enterprises.

People's Committee chairman Le Hoang Quan also focused attention on workers' rights.

Last year 11 State firms were equitised. They had a total of 11,500 workers of whom only 80 quit after equitisation.

"After equitisation, all enterprises have achieved around 10 per cent growth, meeting the city's minimum requirement," Le Ngoc Thuy Trang, head of the Department of Finance's enterprises finance sub-department, was quoted as saying by Sai Gon Giai Phong (Liberated Sai Gon) newspaper.

She said all recently equitised companies should list on the stock exchange as required by the Government.

Quan ordered related authorities and agencies to continue supporting the enterprises equitised last year.

"Equitised enterprises must ensure three things: a restructuring mechanism to achieve higher economic efficiency, increasing labour productivity, and adopting business strategies to dovetail with the city's four key industries," he said.

The industries he referred to are engineering, electronics, pharmaceutical chemicals, and food processing.

He warned that since many State firms are located in prime spots, local authorities should avoid private investors interested only on land.

He cited the example of Dam Sen Park, saying if it is equitised and private investors buy a major portion, the park might soon be sold off as land.

"Therefore, city authorities have not approved the equitisation plan of Dam Sen Park because we have to consider the State's holding.

They focused on how to ensure companies pursue their core business after equitisation, he said.

Truong Van Lam, director of the city Department of Home Affairs, said, "Enterprises must choose as strategic partners, those who are able to develop their core business rather than focus on land.

"State must own dominant shares in enterprises that have good locations."

Quan said, "Equitisation aims to help enterprises develop sustainably, and we are not allowed to let equitisation become privatisation."

He ordered the Department of Planning and Investment to review all restructure plans to ensure they fit in with the city's development plans.

"Related authorities must review all good locations and submit proper plans to retain these enterprises."

He also ordered the setting up of a task force to help enterprises equitise as planned. — VNS

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