Ho Chi Minh City to halve state firms<\/p>\n
HANOI (AFP): Ho Chi Minh City is planning to halve the number
\nof state enterprises under its administration by forcing weaker
\ncompanies to close or merge by the end of next year, a report
\nsaid yesterday.<\/p>\n
But the plan by the city's Directorate of Industries has come
\nunder fire, as state firms accuse it of being heavy-handed, while
\nothers say it is too weak to kill off mortally wounded companies,
\nthe Saigon Newsreader reported.<\/p>\n
At least half the firms -- or around 45 city-run companies --
\nwill have to be merged, closed or \"corporatized\" by the end of
\nnext year, following the closure of 30 enterprises to date, said
\nthe newspaper, a digest of press reports in the southern city.<\/p>\n
Nearly all the firms will be merged rather than shut down, the
\nreport said, adding that \"some economists are ready to criticize
\nthe directorate for not taking tough measures once and for all\"
\nto deal with state firms.<\/p>\n
Managers of the companies have countered with charges that the
\nscheme is too harsh and that authorities have allowed state firms
\nto sicken from a lack of investment or to be swamped by smuggled
\ngoods.<\/p>\n
Mergers could backfire by linking stronger firms with weaker
\ncompanies that would drag them down, the report warned.<\/p>\n
Vietnam has announced several schemes for reviving its state
\nsector, which the government has pledged will continue to play a
\nleading role in the economy, but few of these plans have been
\nexecuted.<\/p>\n
Around half of the 12,000 state firms existing in 1991 have
\nclosed or been merged, and the government is considering cutting
\nthe number to just 500 over the next five years.<\/p>\n
One plan is to merge large numbers of state firms into
\nconglomerates aimed at competing more effectively in
\ninternational markets with aviation, transport, construction, oil
\nand energy becoming key sectors still held by the state.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ho-chi-minh-city-to-halve-state-firms-1447893297",
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