The restructuring of state-owned enterprises (SOEs) will require a total capital of VND55 – 65 trillion (USD2.64-3.12 billion) for debt restructuring, handling of losses, and workforce rearrangement, Minister of Finance Vuong Dinh Hue told a seminar yesterday.
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The reform has not been officially approved but is expected to boost SOEs’ competitiveness which is extremely low compared with their FDI counterparts.
“The return-on-asset ratio of state-run companies have never surpassed 6 percent during the last ten years, while FDI businesses always manage to keep it around 10 percent,” he said.
However, the finance minister also emphasized that the restructuring “will not be an easy task,” since it will affect many group and individual interests.
The restructuring will be conducted at both macro and micro levels, Hue stated.
On the macro scale, the government will revise its policies, workforce and management over SOEs, while at the micro level, the SOEs’ operation mechanisms will be revised.
Hue said the Ministry of Finance had targeted to have at least 1 to 2 state-run companies at the East Asian level, and 10 to 15 state-run groups, and corporations to lead the country’s economy.
SOEs will be divided into three groups, with the government holding 65 to 75 percent stake in one group while holding no controlling stake in the others.
“The government will focus on developing the SOEs operating in key industries including power, traffic, telecom, oil and gas, mineral extractives, fuel, and construction,” Hue said.
He added that the Ministry of Finance will establish a new agency to issue regulations supervising SOEs.