Minister announces target of equitizing four large State-owned corporations before 2020.
Four large State-owned enterprises (SOEs) in the agriculture sector are to be equitized before 2020: the Vietnam Rubber Group, the Vietnam Southern Food Corporation, the Vietnam Northern Food Corporation, and the Vietnam Coffee Corporation (Vinacafe).
The goal was announced by Minister of Agriculture and Rural Development Cao Duc Phat at a recent conference on “Restructuring State-owned Enterprises (SOEs) in Agriculture”.
A report from the Ministry of Agriculture and Rural Development (MARD) released at the conference showed that in the 2011-2015 period the ministry equitized 12 State-owned corporations and enterprises but only brought in VND1.95 trillion ($87.75 million), or 43 per cent of the amount estimated.
Addressing the conference, Minister Phat said that the restructuring of SOEs in the agriculture sector has been tardy in recent years. “Restructuring SOEs is mandatory and an important solution for the successful restructuring of the agriculture sector,” he said.
The agriculture sector has faced a host of difficulties over recent years. Prices for rubber, rice, coffee, and others crops have fallen, cutting into revenue and profits. Last year the sector’s total revenue stood at VND74.1 trillion ($3.34 billion), or 99.3 per cent of the estimate, while pre-tax profit reached VND3 trillion ($135 trillion), or 63.62 per cent of the estimate.