Vietnam to Equitize 550 SOEs in 2007

Vietnam will privatize 550 state-owned enterprises (SOEs) in 2007, according to the government resolution implementing socio-economy policies this year. The SOEs to undergo equitization include some corporations, state-owned commercial banks, insurance companies and utility businesses.

 

Vietnam will continue to list shares of equitized companies on the stock market. In 2007, the Government will audit all state economic corporations and groups, and further supervise the transformation of state-owned companies into one-member liability companies.

 

In the SOE reform program for 2007-2010 period, Vietnam’s government plans to equitize 53 key state corporations. Vietnam has equitised more than 3,000 SOEs, among more than 5,000 companies, in the 2001-2005 period.

 

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, mostly large-scale businesses, retain more than 50 per cent state stake. (Banking Times, Vietnam Panorama)