Government to disband several State Owned Enterprises (SOEs)

HANOI, Sep 6, 2012. Minister Chairman Vu Duc Dam of the Government Office said the Prime Minister had closely directed the arrest of Duong Chi Dung, former head of the Vietnam National Shipping Lines (Vinalines).

Speaking at the regular press conference of the Government on Wednesday, Dam said after Duong Chi Dung had taken flight, the police issued an international arrest warrant for him. Now, Dung has been captured.

The Prime Minister strictly directed this process under the spirit that all people are equal before the law, without any exception, Dam stated. The Prime Minister also sought to clarify whether there was any act of abetting in Dung’s getaway.

The Government is looking to reduce the number of State economic groups to around five or seven, meaning several conglomerate-type groups will be disbanded, stated Minister Chairman of the Government Office Vu Duc Dam.

Replying to local media’s question over the Ministry of Construction’s proposal to abolish the State economic group model of Song Da Corporation and Housing and Urban Development Corporation (HUD) due to inefficient business, Chairman Dam said the plans for reorganizing HUD and Song Da are under consideration.

“The current number of eleven groups will certainly shrink to five or seven,” he said.

This is part of the process for State group and corporation restructuring already approved by the Government.

Particularly, the Prime Minister’s responsibility to manage the conglomerates active in the State monopoly fields like Electricity of Vietnam (EVN), Vietnam Oil and Gas Group (PVN) and Vietnam Posts and Telecommunications Group (VNPT) will be enhanced.

The remaining groups will be reorganized through dissolution, consolidation or handover to ministerial and local agencies, under the spirit of Decree 32 on State ownership in State-owned enterprises.

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Gov’t says to disband several economic groups, Saigon Times, Sep 6, 2012