ADB backs state-owned enterprises reform

The Asian Development Bank (ADB) on Monday provided a US$630 million loan for the state-owned enterprise reform and corporate governance facilitation program in Vietnam.

The loan aims to assist Vietnam in reforming a number of state-owned enterprises (SOEs) and their affiliated companies, improve corporate governance via financial restructuring and renewing corporate operations.

Of the funding, $130 million will be re-lent to the Song Da Group, the Southern Waterborne Transport Corporation and the Debt and Asset Trading Company.

Speaking at the signing ceremony, State Bank of Vietnam Governor Nguyen Van Giau said the ADB’s loan affirms its commitment to supporting the Vietnamese government in effectively tapping resources of state-owned enterprises and enhancing their competitiveness and operations.

The loan will also help Vietnam spur socio-economic development, speed up hunger eradication and poverty reduction, and improve the quality of growth.

By the end of 2008, 4,979 SOEs had been restructured, of which 3,369 were equitized. During 2008-2010 period, an additional 1,535 small and medium-sized enterprises are planned for restructuring, including 948 businesses undergoing equitization.

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ADB backs State-owned enterprises reform

The State Bank of Vietnam and the Asian Development Bank (ADB) on Sept.
27 signed a plan to disburse a 630 million USD loan for the State-owned
enterprise reform and corporate governance facilitation programme.

The loan aims to assist Vietnam in reforming a number of State-owned
enterprises (SOEs) and their affiliated companies, improve corporate
governance via financial restructuring and renewing corporate
operations.

The first sum of 130 million USD will be
re-lent to the Song Da Group, the Southern Waterborne Transport
Corporation and the Debt and Asset Trading Company.

Speaking at the signing ceremony, SBV Governor Nguyen Van Giau said the
ADB’s loan affirms its commitment to supporting the Vietnamese
Government in effectively tapping resources of State-owned enterprises
and enhancing their competitiveness and operations.

The loan will also help Vietnam spur socio-economic development, speed
up hunger eradication and poverty reduction, and improve the quality of
growth.

By the end of 2008, 4,979 SOEs had been
restructured, of which 3,369 were equitised. During 2008-2010 period, an
additional 1,535 small and medium-sized enterprises are planned for
restructuring, including 948 businesses undergoing equitisation./.

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State enterprises to focus on major business fields

HA NOI — A directive has been issued that orders State-owned enterprises to focus on their core production and commercial objectives.

Directive 1568/CT-TTg, issued last Thursday by Prime Minister Nguyen Tan Dung, sets the agenda for State-owned economic groups and corporations to 2015.

It requires ministries, economic sectors and People's Committees that are responsible for State-owned corporations to deliver a comprehensive evaluation of their performance by December 31.

This includes management and investment in non-core business sectors.

Ministries, economic sectors and localities should reinforce their management, inspection and supervision of State-owned enterprises to identify and effectively solve problems during any restructuring, the directive says.

They will also have to review the work each year.

The directive makes the Finance Ministry responsible of checking, supervising and evaluating the effectiveness of production, business and the mobilisation and use of capital.

The ministry will also have to monitor outstanding loans.

Equities corporations must seek approval from State offices before seeking foreign loans or joining with joint-stock partners to establish other enterprises during the next five years.

The directive also instructs ministries, economic sectors and People's Committees to identify and report losing or poor performing State-owned enterprises to the Prime Minister by the end of the third quarter.

The Ministry of Labour, Invalids and Social Affairs and the relevant agencies must devise policies to attract excellent managers for the enterprises, the directive says. — VNS

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