Vietnam to cancel incentives for SOEs, PM Dung says

Vietnam will abolish all incentives for the state-owned enterprises (SOEs) soon, Prime Minister Nguyen Tan Dung said at the 8th meeting of National Assembly (NA) in Hanoi on Oct 20.

This is one of Vietnamese government’s goals for 2011 to put an end to difference between state-run and private companies, contributing to stabilize macro-economy, the Tuoi tre cited Dung as saying.

The SOEs have played an important role in the Vietnam’s development, but they became source of long-term vulnerabilities. Despite the government’s efforts to complete a transition to a market economy and to develop the private sector, its economy is still dominated by SOEs.

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, the NA Standing Committee said in a report last year.

At the end of 2008, 4,979 SOEs had been restructured, of which 3,369 were equitized. During 2008-2010 period, an additional 1,535 small and medium-sized enterprises are planned for restructuring, including 948 businesses undergoing equitization. – Tuoitre

Tags: Vietnam companies, Vietnam enterprises, Vietnam SOEs

Posted by VBN on Oct 26 2010. Filed under Enterprises. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry