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State-run firms set for restructuring

Update: March, 21/2013 - 08:43
Workers process food at the Viet Duc Company in Ha Noi. Municipal authorities are expected to restructure 30 State-run businesses in the capital to enhance their production and competitiveness this year. — VNA/VNS Photo Danh Lam

HA NOI (VNS)— Ha Noi authorities are expected to restructure 30 businesses in the capital to enhance their production and make them more competitive this year, according to the director of the municipal Finance Department, Nguyen Don Toan.

Toan was speaking at a meeting on restructuring and renovating the city's State-run businesses on Tuesday in Ha Noi.

The director said there were 15 businesses suffering losses, combining to form a total deficit of VND55.97 billion (US$2.6 million) in 2012, although he said this figure was an improvement on those recorded in 2011.

Of these companies, four suffered losses of below VND1 billion and the remainder suffered losses ranging from VND1 billion to over VND10 billion.

Toan said that the imminent restructuring work would equitise 16 businesses and 14 other companies will be restructured in different methods. The State will hold more than 50 per cent stake in businesses.

Under the equitisation process of all State-run enterprises in Ha Noi this year, the city authority will officially equitise two companies (Thuy Khue Footwear Company and Mai Dong Company Ltd).

Other companies, including the Ha Noi Bus Station Management Company and the Ha Noi Sport Investment and Development Company will be equitised by December this year, while city authorities will merge eight other businesses.

From March to December this year, three businesses are expected to file for bankruptcy: Ha Noi Construction and Industrial Production Company (Hacipco), Dien Thong Elenco and Sic Son Catering & Tourist Services.

Speaking at Tuesday's meeting, vice chairman of Ha Noi People's Committee Nguyen Huy Tuong said equitising State-run businesses in the city has been carried out since 1996 at the direction of the Government.

From 1996 to the present day, the city has equitised 420 businesses, while 105 have been restructured in different ways - including M&A, dissolution and bankruptcy.

By late December 2012, Ha Noi transferred all State-run companies to a single-member limited liability business model in line with Enterprise Law.

Tuong said the restructuring and renewal of State-run companies in the city aimed to enhance their management and generate better working condition for labourers.

Every company to be equitised has gone on to improve and contribute large capital to the city budget, Tuong added. — VNS

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