Breakthrough measures needed to improve businesses’ health

Chairing a meeting of the Steering Committee for Business Reform and Development in Hanoi on January 31, Deputy PM Hue, who is head of the committee, noted that the health of businesses is better as 47.3% of firms enjoyed profit in 2017, while the figure in 2012 was only 30%. Of the profitable firms, 83.5% are State-owned. However, the profit percentage on capital and turnover remains low, while business management of the firms is still weak, he noted, stressing the need to continue reducing cost for enterprises, including financial and operational cost, he said. He pointed out that the current number of enterprises is far behind the target of 1 million in 2020, as in 2018, the country aims for only 135,000 new firms.A report of the Steering Committee for Business Reform and Development showed that the number of SOEs has reduced sharply to over 500, including seven economic groups, 57 corporations, and 441 independent businesses run by ministries, sectors and localities. Wholly state-owned firms are now present in 11 sectors instead of 60 in 2001.Nguyen Hong Long, deputy head of the committee, said that in 2017, 69 State-owned enterprises were approved for equitisation, including large businesses worth over VND1 trillion (US$44 million). State capital in equitised firms last year was VND160.08 trillion, 6.34 times higher than that of 2016. Long said that the State has so far withdrew VND8.91 trillion in book value and gained VND139.38 trillion from SOE divestment. Last year, the country saw a record number of newly-established… [Read full story]


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