Vietnam SOEs Equitization Slows Down in 2010
The equitization of state-owned enterprises (SOE) saw a slowdown in 2010 with only 144 companies selling shares to public, the Ministry of Finance said in a report.
As at December 15 of 2010, Vietnam rearranged 5,846 SOEs and their units, including 3,944 enterprises equitized, 261 ones turned into limited liability firms, and 1,902 ones merged.
An earlier report showed that up to 3,800 SOEs and their units had been privatized at the beginning of the year, which means only 144 more state-run firms completed share sales in the whole year of 2010, compared to 67 in 2009.
The slowdown was attributed to impacts of the global economic downturn and obstacles in institutional mechanism of the country, according to the ministry.
At a two-day meeting ending last Friday between the government and provincial authorities, the Finance Ministry urged provincial governments to speed up the process of reforming the state sector, including the equitization of SOEs.
Deputy Prime Minister Nguyen Sinh Hung said accelerating the transformation and equitization of state enterprises would be a focal task in 2011 and during the 2011-2015 period.
Although SOEs contribute 40% of Vietnam’s GDP and 55.4% of the state budget, only 44.4% of these enterprises are financially healthy, and many of them benefit from their monopoly advantage. (Vietnam Economic Times, Saigon Economic Times)
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