Vietnam will equitise 53 state corporations during the 2007-2010 period under a recent government decision.
Under the statute, the Prime Minister will allow equitisation of Vietnam Textile and Garment Group and 91 corporations under six Ministries: six corporations under the Industry Ministry, 14 corporations under the Construction Ministry, 10 corporations under the Transport Ministry, three corporations under the Fisheries Ministry, 12 corporations under the Ministry of Agriculture and Rural Development, and 1 corporation under the Health Ministry.
As scheduled, the two giants Vietnam Airlines and Vietnam Textile and Garment Group will equitize in 2008.
The Vietnam Paper Corp, the Vietnam Steel Corp, and the Northern Food Corp will follow suit in 2009.
The Vietnam Cement Corp. and the Chemicals Corp. will be the last of the major corporations to undergo privatization by 2010.
Reportedly, the government oriented the equitization of 53 state groups and corporations in its state owned enterprises reform program for 2007-2010 issued in last October.
Together with state owned banks, the above mentioned corporations are expected to inject major amounts of commodities in the stock market in 2007.
It is reported that, of more than 5,000 SOEs in the 2001-2005 period, the country equitised more than 3,000 with a total capital of some VND26 trillion. Out of the equitized SOEs, more than 2,600 have capital of less than VND10 billion each.
Nevertheless, the remaining 2,000 SOEs still make up almost 40 per cent of GDP and over 50 per cent of tax revenue.
Nearly 1,200 or 33 per cent of the total 3,000 equitised SOEs, which are mostly large-scale businesses, still retain more than 50 per cent state stake.
Young People
Vietnamese
