08/09/2014 15:57 GMT+7 Email Print Like 0

Restructuring of State-owned Enterprises

At a regular meeting on reviewing the restructuring of state-owned enterprises (SOEs) over the past seven months of the year, Prime Minister Nguyen Tan Dung asked sectors and ministries to drastically restructure SOEs and warned them to ensure the restructuring process does not cause losses to the treasury or disorder in the market.
According to a report of the Steering Committee for Enterprise Renewal and Development, positive changes were seen in the process of enterprise privatization over the past seven months of the year so the goal of restructuring 432 SOEs could be achieved by 2015.

As of July this year, the Prime Minister approved 20 projects on the restructuring of Stated-owned groups and corporations under the authority of the Prime Minister. In the whole country, 76 enterprises were rearranged, of which 55 were privatized, two were dissolved, one was sold, 15 were merged and 3 went into bankruptcy.

Prime Minister Nguyen Tan Dung chairs a conference on the implementation of restructuring
State owned-enterprises in the 2014-2015 period. Duc Tam/VNA

 At the conference entitled “Boosting the restructuring of
State-owned enterprises of the Bloc of Central Enterprises by 2015”. Photo: Lam Khanh/VNA

 Deputy Prime Minister Vu Van Ninh works with the Hanoi authority
about the restructuring of State-owned enterprises. Photo: An Dang/VNA

Head of the PCC Economic Commission Vuong Dinh Hue works with the Ho Chi Minh City authority
in terms of the restructuring of State owned-enterprises and the system of banks in the city. Photo: Thanh Vu/VNA

The Ministry of Planning and Investment coordinates with the Department of Foreign Affairs and Trade of Australia
to organise a workshop to launch the project on economics restructuring to improve Vietnam's competitiveness. Photo: Dang Lam/VNA

  “The most important thing is to rearrange the key staff of cadres. If the plan is not completed, the board should resign.”

(Prime Minister Nguyen Tan Dung)
The reality shows the pace of restructuring in some sectors, ministries and localities, such as the Ministry of Transport, the Vietnam Textile Group and the Vietnam Marine Corporation, has been implemented quickly with positive changes thanks to the direct instructions and supervision of their leaders. However, the report told about the low pace of equitation in the Ministry of Culture, Sports and Tourism, the Ministry of Public Health, the Ministry of Trade and Industry, Binh Dinh, Nghe An, Quang Ninh, Tay Ninh Provinces and the Chemicals Group.
Furthermore, about 84 enterprises have not seen any progress in equity; they have not even established a steering committee for equitation. During the first seven months, the recession reached 2,975 billion dong, three times more than 2013, but it is lower when compared with the total amount of capital needed to be withdrawn.

Concluding the meeting, Prime Minister Nguyen Tan Dung asked ministries, agencies, sectors, state groups and corporations to simultaneously accelerate business activities in accordance with restructuring activities and consolidate their staff. “The most important thing is to rearrange the staff of key leaders. If the plan is not implemented as approved, the board should resign,” he said.

 In the first six months of this year, Dung Quat Refinery produced over 2,56 million tonnes
of products with its turnovers of 61,300 billion dong. It strives to reach 5.18 million tonnes of products
with a total turnover of 113,600 billion dong, contributing 13,700 billion dong to the state’s budget. Photo: Ha Thai/VNA

Up to August 2014, member units of Electricity of Vietnam completed 23 projects
and started 19 projects of 500-220kV electricity grid.
The total value of construction investment reached 62, 887 billion dong. Photo: VNP’ file

In 2014, PV Oil under PetroVietnam strives to reach 22% of market share in oil and gas trade
with a total turnover of 81,800 billion dong, pre-tax profit of 124 billion dong
and the state’s remittance of 4,418 billion dong. Photo: Huy Hung/VNA

 In the first six months of this year, Vinapaco afforested about 3,000ha material forest for paper production,
an increase of 18% over the same period of last year; produced 56,356 tonnes of paper products
with turnover of 1,352 billion dong, equivalent to 41% of this year’s plant. Photo: Huy Hung/VNA

Emphasizing restructuring as the key political mission, the Prime Minister urged ministries, agencies and localities to speed up the restructuring of State-owned enterprises following an approved plans and issue policies and mechanisms to overcome difficulties and obstacles arising from the restructuring process. He added that the process of capital recession should be implemented strictly to avoid causing losses and disorder.

At the meeting, Prime Minister Nguyen Tan Dung asked the Ministry of Labour, War Invalids and Society to devise policies on solving the abundant labour force during the process of restructuring and privatization. The Ministry of Agriculture and Rural Development should have a policy to support ethnic people to grow and preserve forests and give instruction for the implementation of stated-owned plantations.