Since the first equitisation of state-owned enterprises was piloted in 1992, there have been more than 3,000 state-owned enterprises going public, which are expanding in both scale and operation in more sectors than previously under 100 percent State ownership, such as, electricity, marine, petrol, finance and insurance. Many big enterprises have obtained great achievements, particularly the two big groups Vietnam Coal Mineral Group and Vietnam Petrol Group.
In the Vietnam Coal Mineral Group, enterprise restructuring has taken place in 3 phases. From 1995 to 1999, the Group fulfilled the first specialisation in the organization of its member units, reduced unnecessary intermediaries, and transferred branches under the management of the locals. From 2000 to 2004, the Group continued to restructure, with transformation, equitisation, and acquisition offers for small-sized enterprises.
2005 to 2010 is the third phase marking a great turning point of the group. After basically transforming its subsidiaries under the Enterprise Law in 2005, the Group submitted to the Government a proposal for new transformation to the parent company-subsidiaries model. The project is ratified by the Prime Minister. The parent company is Vietnam Coal Mineral Group, the state-owned enterprise, while subsidiaries depending on the scale and operating sectors will be founded under many kinds of ownership, such as general corporation, state-owned enterprise, one member state-owned company, joint-stock company, joint-venture company, foreign company, or technological company.
According to the first survey, most subsidiaries transformed into the joint-stock companies and one-member companies have more effective operation than previously. Namely, their revenue, profit, dividends and employee income increase along with the improvement of employee morale.
In the coming time, 16 remaining subsidiaries with 100 percent of charter capital held by the Group will be mostly transformed into joint-stock companies and operated under the Enterprise Law, which helps fulfil subsidiary restructuring before 2010.
The restructuring of the Vietnam Petrol Corporation (Vietnam Petrol Group) has achieved its most significant step since the reform plan in 2003, with the proposed project establishing the Vietnam petrol Group in 2006 passed by the Prime Minister. Up to now, the Group basically fulfilled the transformation. Besides, the Group has established many new member units and contributed capital for other partnership companies. At the moment, the Group has founded two companies operating under the parent company-subsidiary model, three subsidiaries with 100 percent capital invested by the group, seven joint-stock companies, two one member units allowed to establish three subsidiaries, and invested in five partnership companies. In the beginning of 2007, the Group established the Vietnamese Petrol Institute by merging three technology and science research units.
Dinh La Thang, president of the group, revealed that after the transformation, the group’s member units are all working effectively, for example, they average 50 percent increase in revenue, and nearly 100 percent increase in profit from the previous year. The group will continue reforms and expects state ownership in the joint-stock companies to be down, even lower than 50 percent of charter capital. The group will control such companies through brand management, technology and marketing. In addition, the equitisation of subsidiaries is being accelerated to help the group unload unnecessarily held 100 percent capital (pursuant to the resolution 38/2007/ QD of the Prime Minister). Also, the Group transformed some joint-venture companies, such as the Mekong Petrol joint-venture company and Vietsopetro Petrol joint-venture company, into the parent company-subsidiary model, invested capital into partnership companies and turned Vietnam Petrol Institute into the Science Studying office.
P.V
Vietnamese
