Vietnam Government on January 17 issued Directive No.03, which specified that the plan to reorganize, restructure and equitize state-owned enterprises (SOEs) will be approved within January, 2012.

Specifically, the Prime Minister directed related Ministries, ministerial-equivalent agencies, government bodies, People’s Committees of provinces and cities directly under central authority, state-owned economic groups and corporations to:

(1) Complete the mechanisms, policies related to SOEs and create more favorable legal framework for SOEs’ renovation, management, rearrangement and ownership transfer.

(2) In the first quarter of this year, submit the plan to restructure each economic group, corporation, 100% state-owned firms with emphasis on restructuring their business lines, affiliates and human resources as well as plans to divest capital from non-core businesses.

Related ministries, departments and localities are also requested to promptly transfer state capital representative rights at equitized enterprises to State Capital Investment Corporation (SCIC).

According to the overall restructuring plan, the government will privatize 573 out of 1,309 state-owned enterprises (SOEs), including 1 economic group, 56 corporations, 1 commercial bank, 187 subsidiaries, 89 enterprises directly under ministries, and 239 enterprises under local authorities. After equitization, the government will hold controlling shares at 392 enterprises.

In addition, the government will shut down, liquidate 13 firms and restructure another 31 SOEs through merger and acquisition.

The remaining 692 SOEs will be re-organized into 44 corporations with 150 subsidiaries.

 

 

Source Sophie/ StoxPlus