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Revamp for State enterprises

Update: February, 23/2012 - 10:35

HA NOI — The Government plans to implement a project aimed at restructuring State-owned enterprises (SoEs) this month, said Finance Minister Vuong Dinh Hue.

At a meeting on restructuring the Housing and Urban Development Holdings (HUD) held Tuesday, Hue said that the Government would create favourable conditions for SoEs to access credit in a move to facilitate the restructuring.

"Besides working with other relevant ministries to develop the corporate bond market, the finance ministry is also due to issue policies to boost the securities market this quarter in order to assist enterprises in capital mobilisation," Hue said.

Addressing the meeting, HUD General Director Nghiem Van Bang admitted that his corporation was facing difficulties in accessing capital in the restructuring process due to a slowdown of the stock market.

To implement restructuring, Bang said that the HUD would finalise the equitisation of its four corporation members this year.

"We will also focus on our core real estate industry business and withdraw capital from existing non-core and ineffective projects," he added.

He said that the HUD would renovate its corporate governance system, especially in financial governance, to help it operate more effectively.

The corporation on Tuesday pledged to cut VND125 billion (US$6 million) in management costs this year, which was expected to raise its annual profit target from VND1.98 trillion ($99 million) to more than VND2.1 trillion ($105 million).

Together with the HUD, Hue said that Bao Viet Insurance Holdings, Vinatex, Vinalines and Electricity of Viet Nam had so far also pledged to cut more than VND3 trillion ($150 million) in management and production costs this year. — VNS

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