Steering Board for Enterprise Renewal and Development is expected to equitise 900 State-owned enterprises (SOEs) in 2006, in which 600 SOEs will be equitised with a minimisation of State monopoly and removal of enterprise monopoly.
According to the Steering Board for Enterprise Renewal and Development, by late 2006, Vietnam will have around 1,800 SOEs with 100 per cent State capital, 900 equitised SOEs with the State holding the control stake, 700 equitised SOEs with the State not holding the control stake, and 500 newly established joint stock companies, eight groups and 93 corporations. From 2006, SOEs with 100 per cent State-owned capital will be subject to the Unified Enterprise Law. Also, there will be mechanisms and policies to regulate those enterprises in monopolising positions.
The equitisation of some large SOEs with the State holding the control stake has attracted much capital sources from the society, creating favourable conditions for enterprises to renew their technology and management, thus improving their operation effectiveness. However, the process remains slower than required by the renewal process. Also, the attraction of shareholders from outside still poses a constraint. As the State still holds a large stake in the capital of equitised enterprises, the renewal of corporate management and operation remains constrained.
Another issue is that those enterprises which were in good condition for equitisation are already been equitised. The remaining enterprises are not in good condition for equitisation. However, managers are still confident in the prospect of equitisation this year as localities now have experience of performing their equitisation tasks. Furthermore, objects of the enterprise renewal and equitisation are more focused and the legal framework and procedures have become more convenient.
In fact, there are hot post-equitisation issues on land, asset evaluation, financial policies, and import and export tax. Ho Xuan Hung, deputy head of the Steering Board for Enterprise Renewal and Development, said that to settle the issue, it was necessary to implement the Unified Enterprise Law, which would take effect from July 1, 2006.
It is reported that in 2005, Vietnam reorganised and equitised 933 SOEs, many of which were big enterprises, such as the Song Hinh-Vinh Son, Thac Ba and Pha Lai electric power plants, the Tan Mai Paper Company, the Oil and Gas Drilling and Service Company.
Mai Anh
Vietnamese
