THE SOCIALIST REPUBLIC OF VIET NAM
Government News
ADB supports VN to continue SOE reform
VGP – The Asian Development Bank (ADB) on December 14 pledged to provide Việt Nam with a financial support, worth of US $630 million, in order to help State-owned enterprises (SOEs) improve their efficiency and transparency.
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The credit will help SOEs to operate effectively and transparently – Illustration photo |
The ADB will allocate US $600 million from its ordinary capital resources to restructure debts of some selected SOEs.
The rest US $30 million will come from the Asian Development Fund (ADF) to strengthen management capacity and better organization of some SOEs.
Mr. Pradeep Srivastava, a representative of ADB revealed that the bank’s funds make up almost 36% of the estimated US $1.77 billion cost for the SOE transformation process by 2015. The remaining contributions are expected to come from the Government, SOEs themselves and strategic investors.
The Ministry of Finance, the major implementer, will carry out the project in six years from December 2009 to December 2015.
Since 1992, the Vietnamese Government has equitized or restructured some SOEs. However, the process was implemented in small SOEs, said Mr. Pradeep Srivastava, Senior Regional Cooperation Specialist in ADB’s Southeast Asia Department.
According to ADB and strategic investors, the SOE reform plays an important role in minimizing inefficiency in the State-run sector and speeding up private ones for economic prosperity.
ADB assistance will facilitate this process by making SOEs more attractive to strategic and foreign investors by strengthening their balance sheets, restructuring corporate organizations, streamlining management, and increasing transparency in line with global standards.
By Hương Giang