March 10, 1999
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| March 10, 1999 | atimes.com | |
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| Southeast Asia Vietnam plans new management for ailing state-owned companies HANOI - The government says it is introducing new forms of economic management to limited-capital loss-making state-owned enterprises in an effort to make them more effective. The Planning and Investment Ministry is preparing regulations setting how much profit must be repatriated to the state each year as well as leasing and selling regulations for loss-making enterprises with capital of less than VND1 billion as part of the new management regime. But such re-structured enterprises must guarantee jobs for their workers, the government cautions. The new forms of economic management are being tried at several loss-making state-owned enterprises. Nguyen Tien Cuong, director of the state-commerce department of the Central Economic Management Research Institute, says initial results are encouraging. Most workers for the enterprises still have their jobs. For example, the Hong Bang Commercial and Service Company was sold to 14 of its staff for VND110 million. It then became the Hong Bang Company Limited with working capital of VND1.8 billion. It is now one of the most effective commercial enterprises Hai Phong. Other trial enterprises are four building materials enterprises in Ninh Binh Province while the Thanh Son paper enterprise has leased all of its property to the Muc Son Paper Company in central Thanh Hoa province. All have invested more capital into their enterprises while trying to improve the quality of their employees, the government says. All have developed and expanded their outlets. They have not only created sufficient work for the staff of loss-making profit enterprises but recruited more workers. Many State-owned enterprises with capital of less than VND 1 billion are classified as being in need of reorganization: 70 per cent in Nam Dinh; 51 per cent in Ninh Binh; 34 per cent in Thanh Hoa; 32 per cent in Hai Duong and 20 per cent in Hai Phong. Many State-owned enterprises are ready to change to set profit payment, leasing or selling but await official Government regulations. Cuong says the Government plans to establish a fund to support the process. The Capital Property Management Department for State enterprises will evaluate loss-making enterprises wanting to change their economic management regime. But first, the way in which workers will be affected by the change has to be settled. (Asia Pulse/VNA) | |||||||||
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