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Vietnam gov’t won’t own 100% of all state-run firms: proposal

Tuesday, February 11, 2014, 11:17 GMT+7
Vietnam gov’t won’t own 100% of all state-run firms: proposal
An employee works at a plant of a subsidiary of Vinatex in Ho Chi Minh City. Vinatex is one of the state-run enterprises to go private by 2015.

The Vietnamese government will not necessarily have to hold a 100 percent stake in all state-owned enterprises, the Ministry of Planning and Investment proposed in a draft decree on classifying state companies.

The government will only own the entire share of enterprises that directly serve the country’s national defense purposes, as well as those that operate the national grid and railway, operate flights, print money, and produce media contents, according to the draft bill.

The government will have a 75 percent stake in businesses that manage seaports, airports, telecom infrastructure, and mineral mines; exploit and process crude oil and gas; and trade oil and gasoline.

The government will hold a 50 to 65 percent stake in businesses operating in the fields of transportation, credit, finance, coffee, rubber, and urban lighting, irrigation and sanitation.

Under a master plan recently announced by the Prime Minister, 500 state-run enterprises in Vietnam will be privatized from now to 2015.

Bui Van Dung, an official from the Central Institute for Economic Management who is one of the authors of the plan, revealed that those to go private also include major names like Vinatex or Vietnam Airlines.

The economist said the list with details on which businesses will have to go private and when and how they will do so is already available, but refused to elaborate.

“Announcing the plan too soon may affect employees of these enterprises, so we have to wait for the right time,” he explained, pressing that many major corporations and groups are on the list.

In its recently published journal on privatization, Fraser, the first-ever foreign law firm in Vietnam, listed some of the big names it believes have been proposed to go private.

These include the VNPT, Agribank, Vinafood 1 and 2, and Vicem. There are also businesses operating in the power and construction sectors. 

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