Wednesday, 29/1/2020
Renovation and restructuring of State enterprises and challenges
30/11/2012 10:27' Send Print

Restructuring state enterprises is an important and necessary task to bring the country out of the current difficult period for sustainable development. Some major orientations to continue the renovation process and state enterprise restructure are:

- Continuing to confirm the necessity of state enterprise in the current conditions of Viet Nam while clearly identify the participation, position and role of the state enterprises in each period of development.

- Continuing to streamline the state enterprises with 100% state capital. Most of them will change into stock companies where the state holds majority of shares.

- Accelerating equitization of enterprises that the State does not need to hold 100% of prescribed capital.

- Continuing to complete legal framework to exercise the rights and obligations of state ownership of state enterprises.

There are tasks to be done to ensure the success of the renovation and restructuring of state enterprises;
First, the level of participation of state enterprises in the economy should be identified to that they can assume their expected role while helping to minimize bad impacts to market.

Second, while streamlining the state enterprises to facilitate participation of other economic sector, the Government should identify substitute tools to continue operating the economy effectively.

Third, state management agencies should assign concrete norms, targets and tasks to state enterprises and monitor measurable results.

Forth, equitization of enterprises is a great opportunity for investors but is also a challenge given the current economically difficult situation, that is not to mention negative impacts caused by the withdrawal from sensitive areas of some corporations./.

Ho Sy Hung, Ph.D Director General, Department of Enterprise Development Ministry of Planning and Investment