Dec. 15 – The Asian Development Bank (ADB) has approved US$630 million in financial support for Vietnam to reform its state-owned enterprises to make them more efficient and profitable as well offer opportunities for the private sector.
The multitranche financing facility for the SOE Reform and Corporate Governance Facilitation Program will help government efforts to equitize SOEs by changing them into joint stock companies with limited liability. So far, the process has slow and limited to smaller companies.
The government wants to take a more active role to transform huge general state corporations and unlock the full potential of their subsidiaries.
The ADB program will help the government strengthen their balance sheets, rationalize corporate structure, streamline management processes and increase transparency to internationally acceptable standards. It will also also provide training and assistance to government institutions involved in the SOE reform process.
“State-owned enterprise reform is critical to reducing the dominance of inefficient state production, promoting private sector development and enhancing economic growth in Viet Nam,” Pradeep Srivastava, Senior Regional Cooperation Specialist in ADB’s Southeast Asia Department said in a statement.
