11:24:12 AM | 15/7/2008
Vietnam privatized 30 state-owned enterprises (SOEs) out of the total 62 SOEs rearranged in the first six months of 2008, said Pham Viet Muon, deputy head of the Steering Committee for Enterprises Reform and Development.
The privatization process goes slowly at snail pace, but it is sui in the current socio-economic situation, he said.
In 2006, the government planned to privatize more than 1,500 SOEs by 2010.
However, &ldquothe stock market slumped recently and purchasing power weakened. Even if we had issued shares, no one would have bought them,&rdquo he said.
&ldquoTrying to pursue the original target is impractical. The government will adopt measures to accelerate the process.&rdquo
Vietnam has privatized total 3,786 SOEs so far.
The country now has 1,720 state wholly owned companies, including seven groups, 86 corporations, 1,099 indepent state-owned companies. In addition, there are four state-owned commercial banks.
Six state corporations and one state-owned bank have undergone privatization.
The state-owned groups and corporations own 100 per cent registered capital in 524 affiliate companies, hold more than 50 per cent stakes in 738 privatized companies and less than 50 per cent stake in 672 companies.
These groups and corporations play key role in the economy, helping the government to regulate the macro economy. In 2007, their goods and services production accounted for 40 per cent of GDP.
To implement the government&rsquos anti-inflation measures, they have susped 609 projects worth VND34.2 trillion (US$2.14 billion) so far this year.
Muon said that most of the 3,786 privatized companies, especially those the state holds controlling stake, still retained their old management mechanism. (VOV, Vietnam Financial Times)
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