(VOVworld) – Since the beginning of a proposal to equitize state-owned enterprises 3 years ago, 44 of 99 SOEs belong to the Ministry of Transport have been equitized. The Ministry plans to complete equitization of another 40 businesses by the end of next year.

Although about 500 enterprises need to be equitized under the project to restructure SOEs by 2015, the process has proceeded slowly over the past 3 years. The industry considers equitization a breakthrough for its members to reform the management mechanism, mobilize capital from shareholders, reduce debt ratios, and improve production and trading efficiency. Thanks to the set direction, last year 11 general corporations under the ministry were equitized, and by the middle of last month the Prime Minister had approved plans to equitize 9 out of 10 general corporations of the Ministry. Minister Dinh La Thang says:

The Vietnam National Shipping Lines, Vinalines, will be restructured as part of the Ministry of Transport’s action plan from now until 2015. (Photo: Hong Van)

“We’ll continue to implement the government direction on SOE restructuring, reform, and equitization. We’re determined to finalize the process for the remaining companies in the next two years. All SOEs of which the government doesn’t need to own a majority share will be turned into joint-stock companies.”

Once it's equitized, Vietnam Airlines will include a parent company, 15 subsidiaries companies, and 12 associated companies. (Photo: esn.vn)

Under the Ministry of Transport’s plan, its ten general corporations will conduct initial public offerings in the first quarter of this year. Once it is equitized, the National flag carrier, Vietnam Airlines, will include a parent company - the national Aviation Corporation of Vietnam – plus 15 subsidiaries companies and 12 associated companies.  It has set a goal of improving business activities so that by 2015 it will be the third most advanced airliner in the region offering international service. Minister Thang added:

“We have put deputy ministers in charge of enterprises to be equitized. If they miss the deadlines, foremost responsibility will be on the deputy ministers while the Presidents and Directors-Generals of these companies will be moved to other jobs.”

At a recent conference in Hanoi, Prime Minister Nguyen Tan Dung praised the Ministry of Transport’s resolute engagement in the equitization:

“Each minister and each province’s chairman should assume responsibility because it’s the Party and government’s task. The government has promulgated policies so what we need now is the responsibility of the heads of agencies to make the equitization process successful.”

Prime Minister Dung said a number of legal documents will be issued to make the implementation easier and more efficient. These will include a resolution on the restructuring, equitization, and withdrawal of capital from SOEs until 2015, an instruction to step up SOE equitization by the end of next year, and a decision on criteria to classify SOEs.