Vietnam has privatized 3,107 State-owned enterprises (SOEs) since the country started the program in 1992, according to the Ministry of Finance.
After experiencing privatization, most of the companies have been operating effectively, the ministry said.
Registered capital of privatized firms has risen by 44 per cent on average, and by ten folds in some companies.
Their revenues have increased by 23.6 per cent while profit soared by 139 per cent, the ministry reported.
Joint stock companies converted from SOEs have paid dividends at 17 per cent on average and helped raise workers’ income by 11.8 per cent.
Ho Xuan Hung, deputy head of the Steering Board for Reform and Development of the SOEs (SBRD), said that the privatization process of the SOEs is on the right track, indicating the Vietnamese Government had passed the appropriate policy.
The process would be further facilitated this year, Hung said.
Under the plan, Vietnam will equitize 600 SOEs among the total 900 enterprises to be reorganized in 2006.
By the end of this year, the country targets to maintain 1,800 whole State-owned firms, along with 900 privatized companies with the State holding the controlling stake, 700 enterprises with the State keeping small amount of shares, 500 newly-established joint stock companies with State-owned stakes, eight groups and 93 State-owned corporations.
In 2005, 693 SOEs were privatized among the total 933 restructured firms. Many of them are medium- and large-scaled firms such as PetroVietnam Drilling & Well Services Company, Vinh Son-Song Hinh, Pha Lai and Thac Ba hydropower plants, Tan Mai Paper Company, and Waterway Oil and Gas Transport Company.
Vietnam Economic Times
Vietnamese
