Oct 6, 2012

Vietnam - VN stops piloting two construction groups

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VietNamNet Bridge – Prime Minister Nguyen Tan Dung has decided to stop piloting two construction groups and assigned the Ministry of Construction to re-arrange enterprises directly under its management.

The two business entities are the Viet Nam Industry Construction Group (VNIC) and  the Housing and Urban Development Group (HUD). Both of them were set up on January 12, 2012.

Inefficiency was the reason for the Government to terminate the two projects, according to Mr. Pham Viet Muon-Vice Chairman of the Office of Government and Deputy head of the National Steering Committee for Enterprise Renovation and Development.

The Government chief tasked the Ministry of Construction to establish Song Da Corporation by re-organizing the Song Da Holdings and its affiliates, establish the Housing and Urban Development Corporation by re-organizing the Housing and Urban Development Group and its affiliates.

The Ministry of Construction will also be responsible for managing the following corporations, namely Viet Nam Machinery Erection Corporation (LILAMA), Infrastructure Development and Construction Corporation (LICOGI), Construction Machinery Corporation (COMA), Bach Dang Construction Corporation, Ha Noi Construction Corporation (HANCORP), Viglacera Corporation, and Viet Nam Water and Environment Investment Corporation (VIWASEEN).

Prime Minister Dung assigned the Ministry of  Construction to equitize LILAMA, LICOGI, COMA, Bach Dang Construction Corporation, HANCORP, VIGLACERA, and VIWASEEN in accordance with the Prime Minister’s Decisions No. 2363/TTg-DMDN dated on December 27, 2010 and No. 903/TTg-ĐMDN dated on June 7, 2011.

The Ministry is also asked to develop equitization plans for Song Da Corporation and Housing and Urban Development Corporation, then submit them to the Prime Minister for consideration.

Since 2005, Viet Nam piloted seven groups which were all founded on the basis of big State-funded corporations. In 2009, the Prime Minister decided to establish four more groups, including the VNIC and HUD, said the Vice Chairman of the Office of Government.

Streamlining State economic groups is the Government’s orientation, said Minister-Chairman of the Office of Government Vu Duc Dam at the monthly press briefing on September five.

He added that the Government plans to reduce the number of State economic groups from 11 to 5-7. 

VietNamNet/VGP


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