Vietnam‘s telecommunication companies will merge or dissolve this year

(VOVworld) - The restructuring and renewal of state owned enterprises (SOE) since 2001 has contributed to the growth of the national economy. From this year, hastening the equitization of SOEs will be a key task of the Vietnamese Government.

Over the past decade, the number of SOEs has fallen from 5,655 in 2001 to about 1,300 by the end of last year. They mainly operate in essential fields to ensure the macro-economy, public welfare, and national security and defense. The equitization process geared up from 2003 to 2006, contributing almost 2.3 billion USD to SOEs’ production and business activities. However, the process has been slowing down since 2008, due partly to the global economic crisis and partly to poor management.  The government’s intent to restructure and intensify equitization is aimed not only at changing the look of SOEs but also eliminating their weaknesses. Doctor Tran Dinh Thien, Director of the Institute of Vietnam Economy elaborates 'We must change the role and function of SOEs in the national economy. Over the past few years, many SOEs haven’t performed their functions correctly and now must return to their core operations to serve national economic and political purposes'.

To realize this goal, the Prime Minister has instructed ministries to step up the restructuring and equitization process by issuing new regulations on turning wholly state-owned businesses into joint stock companies. To date, 7 SOEs, corporations and groups have taken the first steps of restructuring their operations. The Vietnam National Coal and Minerals Group has announced that it will equitize one member limited companies, and will only continue to contribute money to joint venture companies operating in core business fields.restr

Earlier, Electricity of Vietnam Group and the Housing and Urban Development Corporation launched similar reforms. Prime Minister Nguyen Tan Dung says restructuring is an urgent task if SOEs are to lead the economy. He says 'We should develop strong groups that can fulfill tasks assigned by the Government to stabilize the macro economy, act as a foundation for common development and do business effectively. We should work consistently toward the set target'.

To Tuan