Vietnam to accelerate equitization of state enterprises

Vietnam will equitize over 1,500 state-owned enterprises (SOEs), including those operating in sectors important to its economy, in the 2006-2010 period.

It is necessary to keep on equitizing SOEs under ministries and localities, speed up restructure state corporations and economic groups, and equitize commercial banks and insurance companies, Vietnam News Agency quoted Vietnamese Finance Minister Vu Van Ninh, who presented a SOE equitization report at the country's top legislature on Monday, as saying.

To complete the equitization of more than 1,500 SOEs between now and 2010, Vietnam will simplify administrative procedures related to business restructure, especially asset inspection, debt confirmation, financial settlement, and enterprise evaluation, he said.

By the end of August, Vietnam had equitized 3,060 SOEs, including enterprises having big capital and operating in the fields of electricity, telecommunications, maritime, petroleum and finance.

According to a survey among 850 enterprises conducted by Vietnam's Steering Committee on SOE Reform and Development, one year after their equitization, their capital increased 44 percent, revenue 23.6 percent, profit 24.9 percent, and employees' income 12.9 percent, on average.

Source: Xinhua