Gov’t to further classify and equitise businesses

Based on a recent decision issued by Prime Minister Nguyen Xuan Phuc on the classification of state owned enterprises from 2016 to 2020, a total of 240 businesses will be listed as under government management.

Queue to buy lottery tickets from Vietlott. The company’s instant success and large revenue had drawn great attraction from the public and itself had been equitised along with many other businesses. - Photo vietq.vn

Out of the 240, 103 businesses have 100 per cent of their charter capital held by the government, including 62 provincial lottery companies and the Viet Nam Lottery Company (Vietlott).

The Vietnam Railways, Vietnam Oil and Gas Group--VietNam Electricity along with three state-acquired banks of Global Petroleum Bank, Vietnam Construction Bank and Ocean Bank Vietnam--will continue to be completely owned by the government.

Other businesses in important socio-economic sectors such as national defence and security, telecommunication, bill printing, gold smelting, publishing and marine insurance are also on the list.

Four notable businesses owned 65 percent by the state are the Vietnam National Coal - Mineral Industries Group, Vietnam Bank for Agriculture and Rural Development, PetroVietnam Exploration Production Corporation and the Vinaconex investment and mineral trading Co. Ltd.

27 stated owned businesses at 50 per cent to 65 per cent total charter capital belonged to major fields such as telecommunication and food production, whereas 106 companies with less than 50 per cent state ownership were all sorts of major businesses, such as the Saigon Jewellery Company or the Vietnam Multimedia Corporation.

The decision is set to take effect from February 15, 2017.

Source VNS