Vietnam PM urges to restructure loss-making SOEs

Vietnam Prime Minister Nguyen Tan Dung has issued an instruction to ask ministries, agencies and localities to submit plans on restructuring loss-making state-owned enterprises (SOEs) in the third quarter of this year.

Vietnam Prime Minister Nguyen Tan Dung has issued an instruction to ask ministries, agencies and localities to submit plans on restructuring loss-making state-owned enterprises (SOEs) in the third quarter of this year.

The PM made the appeal following the Politburo’s conclusion on the urgent need to finish the rearrangement of SOEs with inefficient operations by 2015, the government said on its website.

Under the instruction, Dung called for completing comprehensive assessments of SOEs’ operations and business areas as well as submitting proposals for the firms’ better performance before December 31, 2010.

The Ministry of Finance is assigned to inspect, supervise and assess SOEs’ operation efficiency through capital mobilization and use and debt on equity ratio.

Meanwhile, the Ministry of Home Affairs will join hands with the Ministry of Labor, Invalids and Social Affairs to help SOEs work out mechanisms for attracting qualified managers.

SOEs have to focus on their core business and seek approval from the Ministry of Finance and concerned agencies for foreign loans and capital contributions.

The National Assembly Standing Committee said in a report in November 2009 that up to 45% of total 91 state-owned corporation and groups had been operating ineffectively with ROE at below 10% due to their mass investment in non-core business such as finance, stock, investment funds and realty projects. (chinhphu.vn)

Tags: Vietnam companies, Vietnam enterprises, Vietnam SOEs