Project title: Reforming the State corporations in Vietnam toward Holding company model (KT.09.11)

Code number: KT.09.11

Author:  MSc. MPP. Ngo Dang Thanh

Duration: 2009 - 2010

Implementing institution: Faculty of Political Economy, University of Economics and Business, VNU

The existing of State’s owned enterprises (SOEs) is always needed to every economies. Although the size and ratio of this sector in the economy is differ between countries, however, the efficiency of SOEs is very important. By researching the reform of SOEs tin general and State corporations in spectacular, it can be generalized that:

- The appearance of 90 and 91 State corporations with booted up the SOE’s economic strength was indeed a stop-down process, therefore it included some problems such as low economic efficiency, small role in the economy, etc.

- One solution to reform these State corporations was to transform them into big economic groups and made they work as holding companies. However, the result is still unclear until today. Therefore, speed up this reform process is required.

- In order to speed up this State corporations’ reform process, many solutions need to be made, concentrated into: Perfect the legitimate framework for the holding company model; Reform should based on internal forces under bottom-up process; Reduce the ties from Government and Mother company for Child company; Improve the managing capacity along with the extending of the company; Make use of the linkages between Child company but not let them too dependent.

University of Economics and Business

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