The ownership change in the equitized state owned enterprises in Vietnam

Abstract

1. Ownership structure in the equitized SOEs

     In the 1992-1996 period the government applied the form of equtizatrion of SOEs via the sales of part of the State stakes under the priority list of the State.

     In the 1996-1998 period the State ruled out the list of priority for SOEs and added a form of conditional equitization for a number of SOEs. The breakthrough in the change of ownership was only made in the 1998-2002 period.

     Basically the ratio of the State stakes still remain dominant in the equitized SOEs, as a result it can be said that equtization has helped change the ownership structure of the individual equitized SOEs, but not the structure of the whole economy, where the State ownership still plays a key role.

2. Management and distribution of the equitized SOEs The diversity of the ownership structure in the equitized SOEs has changed the relationship between management and distribution in the three following cases (1) The State still plays a key role with its dominant stake of 50 per cent of the total; (2) The State ownership is equal to others with the State holding less than 50 per cent stakes; (3) The States with draws from the equitized SOEs. The big changes in cases (1) and case (2) will have a comprehensive impact on the relations of management, distribution of resoureces of the SOEs, after being equitized.

3. The impact of ownership change on the operation of the equitized SOEs

After nearly 20 years of implementing the equtization process. The business scale and efficiency of equitized SOEs has changed in the positive manner. The average capital of each equitized SOE has increased over the years./.