Ha Noi (VNA) – The Ministry of Transport will equitise 22 of its subsidiaries in the 2007-09 period, under a recent decision by the Prime Minister.
Of the total, 12 small subsidiaries involved in management and repair will comprise the first phase of the equitisation.
Ten construction corporations with huge charter capitals who are joining big nationwide projects, including Cienco 1, 5 and 8, as well as Viet Nam Automobile Industry Corporation, will equitise in the second phase.
The Hai Van Tunnel Management Company will be maintained as a State utilities operator, the decision says.
Nguyen Chien Thang, Deputy Director of Personnel Department, said “ The equitisation will help rear-range the subsidiaries of the ministry in an orderly way, which will promote their businesses.”
The Prime Minister also required the ministry to merge two subsidiaries engaged in road repair. Two other transport construction companies will be sold off, along with five subsidiaries that have gone bankrupt.
Thang noted that the Government’s decision matched with the target of the ministry for the near future, as the mergers would open opportunities for the subsidiaries to upgrade their infrastructure in order to generate higher profits.
“Although we want to keep all the subsidiaries, we have to allow the ineffective enterprises to go bankrupt. Because the ones that do not create profits would still not create any even if they were to merge with more effective companies.”
Under the Government’s decision, the ministry will decide the State’s stake in each enterprise after equitisation. “We are trying to complete the equitisations by the end of 2009, with a prosperous re-arrangement for each subsidiary,” Thang said.-Enditem
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