53 giant State-owned groups in Vietnam have made their restructuring plans in the context of the nationwide policy.
SOEs divest from non-core businesses
As of July, 2012, 3,952 out of 5,657 State-owned enterprises (SOEs) were equitised while another other 1,905 enterprises were merged, sold or converted into one-member limited liability company.
According to plan, in a round of restructuring which take place in the period between 2011 and 2015, 899 are to be restructured, 93 of which will be done by the end of 2012.
Many State-owned groups have been implementing cost-cutting solutions and implementing new means to attract customers. These corporations reported that they have saved VND4.4 trillion (USD211 million) by cutting down expenses in 2012.
The Ministry of Finance (MoF) has said the inspection and review process is still being carried out, taking into account adjustments for the capital mobilisation capicity for each enterprise, delaying or extending deadlines for certain projects when necessary. The enterprises also must divest from non-core businesses and spend less money on conference organisation and equipment.
The restructuring of State-owned enterprises has been set as one of the key task for economic development.
The MoF said the number of State-owned enterprises has been reduced but a number of companies in important sectors such as electricity or petroleum will continue to be run by the State, but with streamlined management and administration.
In many cases outdated administrative procedures and shortcomings in the State's role over many enterprises has led to losses, debts and corruption.