The number of state-owned
enterprises (SOEs) operating in Vietnam has fallen by 50 percent since 2000,
according to figures released by the General Statistics Office’s Industrial
Statistics Department. The department reported a total of 3,135 SOEs in 2013,
down from nearly 5,800 in 2000.
This decline is partly the result of
measures implemented by the government of Vietnam to return SOEs to the
country’s private sector in the hopes of garnering greater domestic and international
investment into the country’s economy.
Equity shareholders now own half of
the companies that fell off the list of state-owned enterprises over the last
13 years, with the remaining half now under private management.
The push to privatize SOEs has been
met with positive results as nearly 80 percent of privatized firms reported earnings
growth following their transition. An astounding 40 percent reported growth of
over 10 percent as a result of their equitization.
During his year-end speech at the
Vietnam Development Partnership Forum, Prime Minister Nguyen Tan Dung
reaffirmed the country’s commitment to continue efforts aimed at the
privatization of Vietnam’s large SOE sector. He emphasized the importance of
private and international investment to the country’s continued economic
development and outlined plans to equitize another 500 SOEs in 2014.
“What remains to be seen is how far
they will go in embracing reforms and how soon they will level the playing
field between SOEs and the private sector,” Kyle Spring of the Center for
Strategic and International Studies said
With these concerns in mind, Prime
Minister Dung released a statement for the New Year, emphasizing the National
Assembly’s commitment to improved economic growth in 2014 through the reduction
of obstacles to create favorable conditions for business operations.
“Our tasks are huge, while
difficulties and challenges are great. However, this is a chance for us to
speed up stronger reforms,” said PM Dung.
By
Vietnam Briefing
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