Dong Nai to finish restructuring state-owned enterprises by the end of 2006

Vice chairwoman of provincial People's Committee presents certificates of merits to enterprises.

 Mr. Tran Dinh Thanh, Secretary of provincial Party Committee, presided over the conference. The conference had the participation of Mr. Vo Van Mot, chairman of provincial People’s Committee, Mrs. Dang Thi Kim Nguyen, vice chairperson of provincial People’s Committee, Mr. Dinh Quoc Thai, vice chairperson of provincial People’s Committee and leaders of functional agencies, departments and local state-owned enterprises.

After 3 years of restructuring, Dong Nai has transformed 8 state-owned enterprises, equitized 23 of 29 state-owned enterprises, established one corporation (Dong Nai Food Industry Corporation) and 2 parent-subsidiary companies namely Corporation for the development of Bien Hoa Industrial Zone (SONADEZI) and Dong Nai Import Export Processing Agricultural Product Company (Donafoods). In general, Dong Nai has basically fulfilled its task on restructuring state-owned enterprises in the province.

Generally speaking, most of state-owned enterprises have operated well after being transformed or equitized. Presently, the capital of 19 joint-stock companies is 202,409 million VND, 59.66% higher than that of before equitization. The turnover in 2005 of these 19 joint-stock companies is 1,412,276 million VND, increased 61,55%. As a result, the revenue increases 111.82%. According to some enterprises there remain some overlapped, improper and paradoxical regulations causing bad effects on the operations and trade of these companies, particularly the issue on the size of companies, form of capital mobilization, land management, the structure of CEO and the operation of political organizations in these enterprises…

Addressing at the conference, Mr. Tran Dinh Thanh urged all enterprises to keep on innovating their trade and operation in a vigorous way and pointed out the need to accelerate the equitization process to realize the equitization target by the end of 2006 and need to speed up innovation in SOEs. He also reminded that the role of political organizations in their enterprises should be improved.

(Translated by THKC)