Equitisation on the Right Track
The number of State-owned enterprises (SOEs) has significantly reduced for over a decade but SOEs still play decisive roles in the national economy. From 12,000 SOEs in 1992, Vietnam had 2,800 SOEs and 750 State-dominated joint stock companies by late October 2005.
SOEs are now contributing 39 per cent to the country’s GDP and 50 per cent to the State Budget. The average capital size of an SOE was increased from VND24 billion (US$1.5 million) to VND71 billion (US$4.44 million) now. These figures were revealed by Mr. Ho Xuan Hung, deputy director of the Central SOE Renovation and Development Committee, at a press conference in Hanoi on November 12.
Experts said the restructure of SOEs in Vietnam is carried out gradually and firmly, with little impacts on social development. The Vietnamese Government has focused on restructuring SOEs, dissolving loss-making enterprises and speeding up equitisation of SOEs that the State does not need to hold a 100 per cent stake. So far, Vietnam has equitised 2,600 SOEs, 90 per cent of which are operating effectively. The average dividend of equitised SOEs is 17.11 per cent a year.
In the coming time, equitisation is still a focal task in SOE restructure, Hung stressed. Corporations will be also allowed to go public.
Vietnamese
