City reviews status of state-owned enterprises

Le Hoang Quan, Chairman of the People's Committee of Ho Chi Minh City, hosted a conference on January 8 to review production and business activities of state-owned enterprises in 2012 and implement plans for 2013.
Dao Thi Huong Lan, HCMC Finance Director, stated in a report to the People’s Committee that the City had in all 108 state-owned enterprises but only 13 are in the process of merger, dissolution or near bankruptcy, while other businesses are operating normally.

Vissan, a bustling state owned company in HCMC (Photo: SGGP)

Sales from 95 companies in 2012 reached VND122,512 billion, down 24 percent from 2011.

According to Lan, in these 95 businesses, there are 29 at risk of losing capital with debt accumulating to a total VND720 billion, including disposable assets, inventories, bad debts, and other losses.

There are 17 state-owned enterprises that need restructuring as they invested in non-registered fields such as banking, real estate, securities, etc.

Speaking at the conference, Chairman Le Hoang Quan directed the Department of Finance to collaborate with state enterprise management units to grant prizes to the enterprises that conduct business effectively and penalize those that run theirs badly.

He ordered that in the second quarter of 2013, relevant organs must promptly liquidate eight state-owned enterprises that have repeatedly caused losses for successive years.

Source SGGP, translated by Dan

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