SOEs in Dong Nai expected to complete equitization by end of 2006

Chairman of the provincial Peoples Committee Vo Van Mot is awarding certificates of merit to units and individuals who made significant contributions to reorganization and equitization of State-owned enterprises

(ĐN)- At the summary conference held on May 9, Secretary of the Provincial Party Committee and Chairman of the Provincial People’s Council of Dong Nai province Tran Dinh Thanh emphasized the need for Dong Nai to complete plan for reorganization and equitization of State-owned enterprises (SOEs) by the end of 2006.

Until the end of last year, Dong Nai’s 34 SOEs have been equitized. Futhermore, another 7 SOEs were already transformed into one-member limited liability companies. Especially, 2 SOEs including Corporation for the development of Bien Hoa Industrial Zone (SONADEZI) and Dong Nai Import Export Processing Agricultural Product Company (Donafoods) have adopted parent-subsidiary model. 

SOEs in Dong Nai operate more effectively after they are equitized. The survey conducted on equitized companies showed the business performance has been improved and been of great benefit. The employees in equitized enterprises have stable jobs and increased average income in comparison with the time before equitization.

However, some emerging problems arising after the equitization of SOEs, including characteristics of post-equitized enterprises, labourers and solution for redundant labourers, relation with banks and credit organizations, formalism of state capital share management in equitized enterprises, inadequate and unproper perception on the States equitization policy etc. were also raised at the conference.

Speaking at the conference, Thanh pointed out the need to accelerate the equitization process to realize the equitization target by the end of 2006 and need to speed up innovation in SOEs.

K.Loan