ADB to Lend Vietnam $600M to Restructure SOEs: Financial Minister

The Asian Development Bank (ADB) will provide $600 million worth of loans for Vietnam to help the country restructure some state groups and corporations, Minister of Finance Vuong Dinh Hue said. Song Da Holdings will be the first pilot with a loan of $120 million within 30 years, Hue noted at a recent session of the National Assembly. Hue also added that Vietnam needs a huge capital for its plan to restructure state-owned enterprises (SOEs) and it will strive to mobilize sources, including official development assistance (ODA) for the program. Vietnam has held a workshop on renewing financial mechanisms and policies to assist the restructuring of SOEs. After scandals such as Vinashin and Vinalines, the firm will have to begin publishing audited earnings for the first time. Restructuring SOEs seems to be very expensive for Vietnam; however, experts said that the country should boost the process to raise transparency and competitiveness, contributing to boost the country’s economic development. The country is boost restructuring SOEs and is expected to have only 692 SOEs that remain wholly state-owned, mostly key economic groups, corporations and major companies involved in fields dominated by state investment by 2015. By 2020, this figure is targeted to be reduced to 100. (http://taichinh.vnexpress.net Jun 8)