Deputy Prime Minister Vuong Dinh Hue is speaking (Source: VNA) Hanoi(VNA) – Deputy Prime Minister Vuong Dinh Hue has asked for a breakthrough inimproving the health of businesses, especially State-owned enterprises (SOEs) in2018.
Chairing a meeting ofthe Steering Committee for Business Reform and Development in Hanoi on January31, Deputy PM Hue, who is head of the committee, noted that the health ofbusinesses is better as 47.3 percent of firms enjoyed profit in 2017, while thefigure in 2012 was only 30 percent.
Of the profitablefirms, 83.5 percent are State-owned. However, the profit percentage on capitaland turnover remains low, while business management of the firms is still weak,he noted, stressing the need to continue reducing cost for enterprises,including financial and operational cost, he said.
He pointed out thatthe current number of enterprises is far behind the target of 1 million in 2020,as in 2018, the country aims for only 135,000 new firms.
A report of the SteeringCommittee for Business Reform and Development showed that the number of SOEs hasreduced sharply to over 500, including seven economic groups, 57 corporations,and 441 independent businesses run by ministries, sectors and localities.
Wholly state-ownedfirms are now present in 11 sectors instead of 60 in 2001.
Nguyen Hong Long,deputy head of the committee, said that in 2017, 69 State-owned enterpriseswere approved for equitisation, including large businesses worth over 1trillion VND (44 million USD). Statecapital in equitised firms last year was 160.08 trillion VND, 6.34 times higherthan that of 2016.
Long said that theState has so far withdrew 8.91 trillion VND in book value and gained 139.38trillion VND from SOE divestment.
Last year, the countrysaw a record number of newly-established enterprises with 126,859 firms, up15.2 percent compared to 2016, raising the total operating firms to over561,000, he added.
Mentioning 2018 tasks,Deputy PM Hue urged ministries and sectors continue completing legalinstitution and framework in managing and operating SOEs as well as accelerate equitisation,re-organisation and capital divestment of the firms.
This year, four largeenterprises with highest capital in the 69 equitised groups and corporations in2017 will launch their initial public offering (IPO) on the stock market: theVietnam Rubber Group, PetroVietnam Oil Corporation (PVOIL), the PetroVietnamPower Corporation, and Binh Don Oil Refinery.
The Deputy PM said equitisationtargets the improvement of governance capacity and effectiveness of the firms.
Along with reviewingand handling State-owned enterprises with losses and ineffective operation, Hueasked for reshuffling of key leaders in equitised businesses. - VNA
Chairing a meeting ofthe Steering Committee for Business Reform and Development in Hanoi on January31, Deputy PM Hue, who is head of the committee, noted that the health ofbusinesses is better as 47.3 percent of firms enjoyed profit in 2017, while thefigure in 2012 was only 30 percent.
Of the profitablefirms, 83.5 percent are State-owned. However, the profit percentage on capitaland turnover remains low, while business management of the firms is still weak,he noted, stressing the need to continue reducing cost for enterprises,including financial and operational cost, he said.
He pointed out thatthe current number of enterprises is far behind the target of 1 million in 2020,as in 2018, the country aims for only 135,000 new firms.
A report of the SteeringCommittee for Business Reform and Development showed that the number of SOEs hasreduced sharply to over 500, including seven economic groups, 57 corporations,and 441 independent businesses run by ministries, sectors and localities.
Wholly state-ownedfirms are now present in 11 sectors instead of 60 in 2001.
Nguyen Hong Long,deputy head of the committee, said that in 2017, 69 State-owned enterpriseswere approved for equitisation, including large businesses worth over 1trillion VND (44 million USD). Statecapital in equitised firms last year was 160.08 trillion VND, 6.34 times higherthan that of 2016.
Long said that theState has so far withdrew 8.91 trillion VND in book value and gained 139.38trillion VND from SOE divestment.
Last year, the countrysaw a record number of newly-established enterprises with 126,859 firms, up15.2 percent compared to 2016, raising the total operating firms to over561,000, he added.
Mentioning 2018 tasks,Deputy PM Hue urged ministries and sectors continue completing legalinstitution and framework in managing and operating SOEs as well as accelerate equitisation,re-organisation and capital divestment of the firms.
This year, four largeenterprises with highest capital in the 69 equitised groups and corporations in2017 will launch their initial public offering (IPO) on the stock market: theVietnam Rubber Group, PetroVietnam Oil Corporation (PVOIL), the PetroVietnamPower Corporation, and Binh Don Oil Refinery.
The Deputy PM said equitisationtargets the improvement of governance capacity and effectiveness of the firms.
Along with reviewingand handling State-owned enterprises with losses and ineffective operation, Hueasked for reshuffling of key leaders in equitised businesses. - VNA
VNA
