Gov’t pilots model of State-owned groups

VGP – The Government just released Decree 101/2009/NĐ-CP dated on November 5, 2009 on experimentally founding, organizing, operating and managing State-owned economic groups (SOEGs).

November 09, 2009 4:20 PM GMT+7

Oil and gas exploration and exploitation is one of business fields where State-owned economic groups can be founded

The Decree, which will come into effect on December 22, 2009, will be applied for SOEGs founded under the PM’s decisions to engage in: post, telecommunications and IT; shipbuilding; electric power generation, transmission, distribution and trading; petroleum; coal and minerals; textile; rubber planting and processing; fertilizers and chemicals production; real estates; construction and manufacturing mechanics; finance, banking, insurance and some other fields.

SOEGs are parent-subsidiary corporate complexes which are bound by economic interests, technologies, market and other business services.

The Decree also stipulates that, dominated enterprises are not allowed to buy shares or contribute capital to dominant ones in the same group.

Parent companies and subsidiaries of SOEGs are required to focus their investment and business activities on major fields.

By Phương Hạnh