The
Vietnamese Ministry of Planning and Investment (MPI) is proposing a temporary
halt in the establishment of new economic groups during the next three years in
order to focus on completing the legal framework and implementing restructuring
plans for those that already exist.
At a review meeting on the operation of
economic groups held by the Government Office and relevant ministries, and
attended by representatives from 12 economic groups in Hanoi yesterday, Dang
Huy Dong, deputy minister of MPI, said that the halt would also help
authorities renew and improve the State supervision and management role in
terms of the State ownership capital in each economic group.
Dong said that the implementation of
restructuring plans should focus on their core business while divesting the
investment capital they had already made into non-core business such as
banking, insurance, real estate and securities.
From now until 2020, the parent companies of
these economic groups were expected to be restructured into shareholding
companies following a specific roadmap, Dong said.
In this plan, the State is set to hold more
than 75 per cent of shares in the parent companies of economic groups involved
in coal, mineral, oil and gas exploitation, exploration and processing;
electricity production, transmission, distribution and trading; and fertiliser
and chemicals production.
Dong also said that the State was scheduled to
own over 65 percent of shares in the parent companies of groups operating in
posts, telecoms and information technology; rubber planting and processing;
ship-building or repairing; and the banking sector.
The State would also hold more than 35 per
cent of shares in several parent companies of groups in sectors including
textile-garment, real estate trading and investment, insurance, construction
and machinery.
The ministry unveiled an ambitious plan to
improve corporate governance and accounting standards in these economic groups.
All participating economic group
representatives requested the Government and ministries to complete the legal
framework to help them operate more effectively.
The representative of the Vietnam Posts and
Telecommunications Group (VNPT) asked the Government to give the group special
incentives to invest in foreign countries.
The Vietnam National Textile and Garment Group
requested State support for trade promotion to help its businesses find new
markets.
The representative from the Vietnam National
Coal and Minerals Industries Holdings Corporation Ltd urged the Government to
allow it to continue running under the shareholding company model and sell coal
according to market prices.
Speaking at the meeting, Prime Minister Nguyen
Tan Dung urged the MPI and relevant bodies to roll out an adequate
restructuring model for economic groups in order to help them operate more
efficiently while requiring them to focus on their core businesses.
Dung requested an accelerating equitisation
plan for groups with less than 100 per cent of State ownership while asking for
specific reform roadmaps for each economic group.
He also asked for reviews from ministries in
terms of the legal framework for economic groups with an aim of clarifying the
ownership rights regarding both the board of managers and ministries’
management.
According to the MPI, 12 economic groups have
been established under a governmental trial run programme in the past five
years. They are involved in key economic sectors such as oil and gas,
construction, textile and garment, coal and minerals, electricity and telecoms.
Deputy Minister Dong said that most economic
groups were large-sized in terms of their charter capital and assets. Eleven of
the economic groups, excluding Bao Viet Group, were holding nearly 30 per cent
of their total assets, 51.2 per cent of their equity and employed 40 percent of
labourers working in State owned enterprises.
Of all businesses in the economy, these 11
groups account for 10 percent of the total assets, 14 percent of the equity and
7.6 percent of all labourers.
Over the past five years they have seen
average growth of 119.6 percent in their total assets, 75.1 percent in the
total equity and 16.36 percent in human resources.
Vietnam News
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