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A performance booster for SOEs – McKinsey & Co.

Some SOEs in emerging markets are closing the gap with their private-sector competitors. Petronas, the state-owned energy company in Malaysia, for example, began an operational excellence campaign focusing on improved technical capabilities and a more effective working culture at its plants. After five years, the initiative delivered upward of $1 billion in savings and new revenues. What’s more, the company’s operational effectiveness, judged by a metric combining utilisation, quality, and performance, is now in the industry’s top quartile. While these better-performing companies draw from well-known best practices in the private sector, they also concentrate on three areas of specific importance in the public sector. These are clarifying objectives and securing an explicit mandate, focusing scarce resources on areas with the highest financial impact and redefining the talent proposition. Governments play a big role in creating the right environment for SOEs to excel.

“A performance booster for SOEs,” McKinsey & Co, July 2012

The unlearned lesson: Vinashin, VinaLines, and other SOEs’ inefficiencies, Saigon Times, May 26, 2012

Additional background

According to the Committee for Enterprise Reform and Development and the Ministry of Planning and Investment, state-owned enterprises hold 70% of the total real property in the economy, account for 20% of investment capital throughout society, and devour a staggering 60% of the credit in the commercial banking system, 50% of state investment capital and 70% of official development aid capital.

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Private sector touted as main economic driver, State-Owned Enterprises (SOEs) are inefficient

NA Deputy Nguyen Ngoc Hoa comments on the proposed comprehensive economic restructuring plan during a group discussion of NA deputies from HCMC at the ongoing session of the legislature in Hanoi – Photo: TTXVN

HANOI, May 26, 2012. The National Assembly (NA) Economic Committee wants to promote the role of the private sector as the main economic driver, while reducing the role of the State economic sector.

This is given in a report that the committee delivered to NA deputies on Thursday. The report, reflecting the opinions of scholars and economists at a recent economic conference in Central Vietnam, stressed that the private sector should be considered as the main driver or important driver for economic growth.

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150 SOEs must be equitized every year; HCMC pace is slow


In the first four months of 2012, only four State-owned enterprises (SOEs) were equitized, said a report of the Steering Committee for Enterprise Reform and Development. This is a slow progress given an urgent need for SOEs equitization. The Saigon Times Daily talked to Pham Viet Muon, deputy chief of the steering committee, who also serves as vice chairman of the Government Office, on this issue.

Excerpts:

The Saigon Times Daily: Could you comment on the progress of the SOEs equitization process so far?

Pham Viet Muon: SOEs equitization began in 1992, and since 2001 has been accelerated. By the end of 2011, we have equitized nearly 4,000 enterprises. The number of SOEs dropped from the original 12,000 to 5,655 in 2001. Now, there are only 1,309 enterprises wholly owned by the State nationwide.

Basically, most SOEs are turning into joint stock companies, attracting more resources from the society. More importantly, the management of these enterprises has been publicized.

Some data show that in 2011 and the first quarter of 2012, the number of equitized SOEs is very modest. Why does the process slow down?

the decisive factor is the guidance of ministerial and local agencies, State groups and corporations is not drastic enough.

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Food & Beverage Highlights in May at Sheraton Saigon Hotel & Towers

Join us in a Celebration of Mother’s Day on May 13

Cherish your beloved mum on Mother’s Day and show her how much you care, by celebrating at our Champagne Brunch at Saigon Café. There will be all the favorites including oven roasted beef prime rib with Yorkshire puddings, chicken shawama, delectable foie gras and a large selection of sweet temptations including ice cream and a chocolate hazelnut buffet. There is free flowing Moët & Chandon, house wine, beer, soft drink and juice.

For every buffet ticket purchased, guests will have an opportunity to go in the lucky draw and win the grand prize on Mother’s Day. Let’s go and be the winner!

Mother’s Day Brunch, May 13
Saigon Café, Level 1
11AM – 3PM
VND 1,200,000++

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Weekly Update Mar 26: Palooza Party, Members Night and Meet the U.S. Consulate General

Highlights

Welcome to new AmCham companies in 2012
Member Survey 2012
AmCham Vietnam Direct Selling Committee – About Us
We, Mar 28 Palooza Party at Renaissance Riverside Hotel
Th, Mar 29 Members Night and Meet the U.S. Consulate General
Fr, Apr 6 Networking Night: Competitive Local Compensation Realities Versus The Global Recession
Fr, Apr 13 Business Lunch: Business Gets Social 2012
Inside the Chinese Boom in Corporate Espionage
FDI Rivals Turn Up the Heat on Vietnam
Bitexco Financial Tower: a new HCM City icon
Phu My Bridge: a new HCM City icon (text and YouTube video)

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HCMC hospital overload to remain in coming years

Containersexportfrom VietnamMinister of Health Nguyen Thi Kim Tien (2nd, L) next to People’s Committee Chairman Le Hoang Quan at her meeting with HCMC on the healthcare sector on Tuesday – Photo: Thu Nguyet

HCMC, Feb 15, 2012. Hospital overload has become more severe in HCMC and fresh hospital projects will not be a way out in coming years.
The city has 50 projects to build new hospitals and upgrade existing ones, said a representative of the HCMC Department of Health at a meeting with the Ministry of Health on Tuesday.

Seven new healthcare facilities will be developed in the city’s outlying districts to ease the burden now shouldered by the hospitals in the downtown area. Such projects are the general hospitals in Cu Chi and Hoc Mon, the orthopedic hospital and the medical testing center in Saigon South, the Thu Duc general hospital and the branch of the Oncology Hospital in District 9, and the pediatric hospital in Binh Chanh.

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Choux & Eclairs Promotion, Lobby Lounge, Sa-Sa, Jan 14 – 21

Start the first month of 2012 on a sweet note!

Chefs at the Caravelle Hotel are whipping up much-loved light French pastries with classic cream fillings and decadent toppings to delight guests in the Lobby Lounge.

From Sat-Sat, Jan. 14 to 21, choose from seven varieties of Choux and Eclairs – including Chocolate cream with poached pear slices and icing sugar, and Toffee cream with sliced fresh bananas and broken walnuts – at VND 160,000++ per portion. Pair your favorite pastry with a fresh cup of Lavazza coffee or Ronnefeldt tea for VND 240,000++, or indulge with a flute of fine Taittinger Champagne for VND 310,000++.

Lobby Lounge – Ground Floor – Caravelle Hotel
19 Lam Son Square, District 1, HCMC
Tel: 38234999
www.caravellehotel.com

Choux & Eclairs

Vietnam raises power prices to spur capacity investment

Power tariffs will rise to an average VND1,304 (6 cents) per kilowatt hour from the current average of 1,242 dong, Vietnam Electricity said.

The increase, the first under new regulations which came into force June 1, will help “attract foreign investment into power projects” and “encourage efficient and economical use of energy,” the state-run utility also known as EVN said in the statement.

The company may lose VND3.54 trillion ($ 168 million) from producing electricity this year, Minister of Finance Vuong Dinh Hue told the National Assembly in Hanoi on Nov. 24.

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Consular Club Bazaar, Nov 19, 2011 – Ho Chi Minh City


When:Sat, Nov 19, 2011, 10:00 am – 2:30 pm
Where:Diamond Place, 15A Ho Van Hue, Phu Nhuan District, Ho Chi Minh City

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Record day for SMS donations to Truong Sa

Sep 24, 2011. Over 20,000 SMS messages were sent yesterday to the number 1408, meaning a record single-day donation of VND320 million (US$15,400) has been delivered to the Truong Sa fund meant for raising money to fortify Truong Sa (Spratly) archipelagos.

With a total of VND1.4 billion ($67,300) donated via SMS messages in the last days, the fund – founded by Tuoi Tre – has so far received almost VND19 billion ($913,500) since it was launched in mid May.

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