City plans to equitise 68 State-owned companies

July 26, 2012 | 09:50

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The Ho Chi Minh City government has just submitted to the Prime Minister a plan to equitise 68 out of 91 state-run companies in the city, with the first batch of 31 firms to go public by 2015.

The municipal government also asked for permission from the Prime Minister to maintain the model of one member limited liability company with 100 per cent of the state capital for the remaining 23 enterprises.

As per the petition by the city authorities, those companies targeted for equitisation in 2012-2015 are small and medium sized with a transparent financial situation. These factors are favorable conditions for the equitization of such firms, the city’s authorities explained in the petition.

Of the aforesaid 31 businesses, the state will hold majority stakes in only seven state-owned enterprises.

Enterprises enlisted in the plan include Hi-tech Park Development One Member Co. Ltd., Gia Dinh Textile & Garment Company, Cho Lon Investment & Export Import Company, Ben Thanh Housing Development Co, Ltd., and Satra Tien Giang One Member Co.

Besides, there are 37 other firms suggested for equitisation after 2015 as they have large capital or manage many property assets or engaged in public services, according to the local government.

For instance, Saigon Pharmaceutical One Member Limited Liability Company was recommended to go public after 2015 as now it is running into financial troubles with a loss of nearly VND1.7 billion. Two other firms - Saigon Construction Corporation and Saigon Real Estate Corporation - are also to be equitised in the same period given their huge capital sources and large numbers of state-owned property assets in hand.

SaigonTimes

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