Privatization Makes Sound, Steady Progress

The privatization of state-owned firms have helped reduce the number of poorly performing and bankrupt businesses, the official of the Ministry of Justice Cao Dang Vinh said at a workshop to review the country's privatization process in Hanoi.

 

The government withdrew 20 per cent of its capital from state-run enterprises. Currently, the state holds an average 46 per cent stake in public companies, while employees own nearly 30 per cent and outsiders hold the rest, Vinh said quoting a report from the Ministry of Finance.

 

However, cumbersome administrative regulations have hardly hindered the privatization process, Vinh said.

 

“It’s necessary to simplify procedures in the privatization process. Authorities need to make sure businesses don’t get stuck at administrative hurdles,” Director of K Business Consulting Company and Associates Cao Ba Khoat said.

 

Chairman of Vfam Consulting Company Vu Xuan Tien said Vietnam should further strengthen its administrative reform.

 

“It’s time for the country’s top policy makers to tackle the issue. The National Assembly Standing Committee should issue an ordinance that lays out concrete regulations for the privatization process,” said Tien. (VNA)