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The two business entities are the Vietnam Industry Construction Group (VNIC) and the Housing and Urban Development Group (HUD). Both of them were set up on January 12, 2012.
Inefficiency was the reason for the government to terminate the two projects, according to Pham Viet Muon, vice chairman of the Office of Government and deputy head of the National Steering Committee for Enterprise Renovation and Development.
The government chief tasked the Ministry of Construction to establish Song Da Corporation by re-organising the Song Da Holdings and its affiliates, establish the Housing and Urban Development Corporation by re-organising the Housing and Urban Development Group and its affiliates.
The Ministy of Construction will also be responsible for managing the following corporations, namely Vietnam Machinery Erection Corporation (LILAMA), Infrastructure Development and Construction Corporation (LICOGI), Construction Machinery Corporation (COMA), Bach Dang Construction Corporation, Hanoi Construction Corporation (HANCORP), Viglacera Corporation, and Vietnam Water and Environment Investment Corporation (VIWASEEN).
Prime Minister Dung assigned the Ministry of Construction to equitise LILAMA, LICOGI, COMA, Bach Dang Construction Corporation, HANCORP, VIGLACERA, and VIWASEEN in accordance with the prime ministerial Decisions No. 2363/TTg-DMDN dated on December 27, 2010 and No. 903/TTg-DMDN dated on June 7, 2011.
The Ministy is also asked to develop equitisation plans for Song Da Corporation and Housing and Urban Development Corporation, then submit them to the prime minister for consideration.
Since 2005, Vietnam piloted seven groups which were all founded on the basis of big state-funded corporations. In 2009, the prime minister decided to establish four more groups, including the VNIC and HUD, said the vice chairman of the Office of Government.
Streamlining state economic groups is the government’s orientation, said Minister-Chairman of the Office of Government Vu Duc Dam at the monthly press briefing on September 5.
He added that the government planned to reduce the number of state economic groups from 11 to five or seven.