Vietnam to partially privatize 71 large state-owned enterprises

Updated: 2007-01-02 20:08

HANOI, Vietnam _ Vietnam's prime minister has approved a list of 71 major state-owned enterprises, including national carrier Vietnam Airlines, that will be partially privatized between now and the year 2010, the government said Tuesday.

The decision, made last week but just announced, will require the companies on the list to work out their plans to sell equity shares to the public and submit them to Prime Minister Nguyen Tan Dung for his approval, the government said on its Web site.

Vietcombank and Vietnam Insurance Corp. are among the companies that will offer shares to the public this year; 26 others, including Vietnam Airlines, will go public in 2008. Another 19 will offer shares in 2009 and six more by 2010.

The government will maintain a controlling stake of at least 51 percent in each of the companies.

Tran Dinh Hung, an official with Vietnam Airlines, one of the country's largest enterprises, said the carrier's board of directors will meet this month to work out its plan.

The airline plans to sell between 10 percent to 20 percent of its shares to the public, he said.

"We will be more efficient and more dynamic after equitization," he said. Currently the company is under direct control of the prime minister.

Vietnam has about 1,900 state-owned enterprises, down from some 12,000 before the country launched the Doi Moi or renovation process in the Mid 1980s.

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