In the strategy for the years 2006-2010, SOEs and corporations under the Ministry of Industry are planning to be restructured as nearly 100 enterprises will be equitised.
According to a plan approved by the Prime Minister, 35 SOEs under the Ministry of Industry will be equitised in 2006. However, the implementation of the plan will only take effect when 46 enterprises have registered for equitisation. Minister of Industry, Hoang Trung Hai, noted that it is good news as many enterprises have seen no way for them to step backwards in the process of restructure and classification.
Profitable after restructure
In the 5-year period between 2001-2005, under the decision of the Government on the restructure and reform of SOEs, the Ministry of Industry implemented a series of effective measures and gained some achievements. The total number of enterprises equitised is currently 237.
After the merger, business activities of the corporations have gradually been stabilizing, hence salary and other benefits for the labour force are secured.
With regard to working capital: In 17 enterprises, the business capital has doubled its growth rate in comparison with that before equitisation.
With regard to turnover: 73.9 per cent of enterprises, after equitisation, have achieved higher turnover. The turnover of Da Nang Electronic- Informatic Company has risen from VND 6 billion to 24 billion, while the turnover of Mechanical Tools Company also hiked from VND 27 billion to 51 billion.
In terms of profit: After equitisation, 91 per cent of equitised enterprises have been profitable, the profit being 64 per cent higher than it was before. Therefore, shares of these companies are also high. Out of these companies, 84.6 per cent gain a rate of share over 10 per cent.
In terms of labor: 78 per cent of enterprises employ a higher number of employees than they did before equitisation, especially for textile and garment enterprises.
Equitisation of industrial enterprises from 1994 to 2005
|
Year
|
Number of enterprises
|
Total state capital (billion VND)
|
|
1994-2000
|
22
|
115,454
|
|
2001
|
14
|
100,367
|
|
2002
|
9
|
48,644
|
|
2003
|
90
|
2.730,901
|
|
2004
|
52
|
6180
|
|
2005
|
72
|
7596
|
|
2006
|
46
|
5973,5
|
(Source: Ministry of Industry)
Equitisation Process on the Way
In the strategy for the years 2006-2010, SOEs and corporations under the Ministry of Industry are planning to be restructured as nearly 100 enterprises will be equitised.
From 2007 to 2010, under the direction of the Prime Minister, MOI will complete the formulation of a state syndicate model in some corporations, type 91, such as Viet Nam Petroleum Corporation (PetroVietnam) and Viet Nam Textile and Garment Corporation (VINATEX). The strengthening of some corporations will help establish a state syndicate model such as Viet Nam Steel Corporation (VSC), Viet Nam Tobacco Corporation (VINATABA), and Viet Nam Industrial Construction Corporation (VINACOIN).
The model of a parent & subsidiary company in some corporations will be implemented. The pilot equitisation in all member companies, under a corporation such as Viet Nam Electronic-Informatics Corporation (VEIC) and other corporations, will be complied. In the Electronic Technical Equipment Corporation, the model of hiring a General Director chosen by the Management Board is currently in the process of pilot implementation.
In this phase, it is planned to equitise the enterprises which are regulated to be 100 per cent state owned.
Companies in which the state has major shares are now under consideration to sell some, if not all, state shares in order that the government will not hold governing shares.
Some important industries, such as power plants and power distribution companies, will be equitised in accordance with the roadmap of opening power markets. Other enterprises in mining industries, such as coal, minerals, oil and gas exploration companies, are in the process of equitisation in accordance with the roadmap set out.
Huong Ly
Vietnamese
