SOEs missing equitization deadline to become one-member limited firms

TN News

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The Vietnamese government has decided to convert three major state-owned enterprises (SOEs) to one-member limited companies as they cannot complete their equitization before the July 1 deadline.

Oil and gas group PetroVietnam was the first state-owned company to announce its conversion. It will be soon followed by national carrier Vietnam Airlines and tobacco company Vinataba, local news website VnExpess reported Friday.

The three new companies will have the same rights and obligations as the previous SOEs, the report said.

The government has asked all SOEs to finish their equitization processes by July 1, the date when the law on SOEs is annulled, or convert into a one-member limited liability firm.

Deputy Prime Minister Nguyen Sinh Hung said at a National Assembly meeting in Hanoi last week that the equitization program in Vietnam has been slow as the government didn't want to sell their shares at low prices. 

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