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Vietnam Approves Overhaul Plan for State-Owned Companies

Vietnamese Prime Minister Nguyen Tan Dung approved proposals to boost the competitiveness and profit margins of state companies, according to a posting on the government website.

Selling shares in some state companies will be a “key task” during the period until 2015, according to the restructuring plan. Some companies, such as those classified as important to national defense or economic production, will remain under full government control, according to the proposals.

State companies facing financial difficulties are to “focus resources on core business activities” and clarify management responsibilities, the plan states.

Strengthening the performance of state companies would require “decisive measures”, according to an International Monetary Fund report this month that said “the lack of information on state-owned enterprises’ financial position is posing a threat to the financial system, as well as, ultimately, the public fiscal position.”

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