An economic group must have a registered capital of at least VND7 trillion (US$437.5 million), according to a proposal the Ministry of Planning and Investment (MPI) has submitted to the prime minister.
In a draft decree on foundation, organization, operation and supervision of the state economic groups, MPI proposed that the State will hold 100 per cent of registered capital or controlling stakes in the parent company of a group.
The draft also says that only several corporations are allowed to convert themselves into economic groups. These corporations must be operating in such sectors as post and telecom, IT, shipbuilding, shipping, garment, electricity production and transmission, oil and gas, coal and mineral.
Vietnam now has eight economic groups, including VNPT, Vinacomin, PetroVietnam, EVN, Vinashin, Vinatex, VRG, Bao Viet, and 96 corporations and large-scaled state companies.
A report from the government’s Steering Committee for Enterprises Reform and Development said that some state-owned groups and corporations have recently expand to non-core business sectors. Their investments in securities, banking and finance sectors by the end of June 2008 totaled VND7.37 trillion (US$460.6 million), accounting for 2.16 per cent of their equity and 0.92 per cent of total assets.
In the first six months, the state-owned groups and corporations reached 595 of their revenue target, 52.4 per cent of profit target and 64.8 per cent of state budget payment target set for the whole year.
Some of them suffered losses or made small revenues and profits.
The Steering Committee for Enterprises Reform and Development has proposed the prime minister to temporarily stop groups and corporations from investing in financial, banking, securities and real estate sectors in 2008. From next years, they must report to the Prime Minister before making their investments in these sectors. (Vietnam Economic Times, Labor)
Vietnamese
