Plan of arrangement and renewal of state-owned enterprises in Dong Nai Province in the period 2007-2010 discussed

Production activities at Donafood Co.

Implementing the plan of arranging, renewing and improving efficiency of state-owned enterprises which has been approved by the Prime Minister, Dong Nai has at present 58 enterprises, in which 25 are carrying out independent accounting and 33 have been equitized. Overall, both state-owned enterprises and equitzed ones have operated efficiently, enhanced investment and development and expanded their scale of business and production. Targets of sales, profits and payments to government budget all exceeded those planned. Average income of laborers also increased in comparison with that of last year.

However, there are still a lot of members of corporations and groups of companies encountering difficulties in orienting investment and looking for markets. Particularly, some enterprises continue to face difficulties and suffer from loss after equitization due to natural calamities, epidemics and unfavorable fluctuation of market prices. Some enterprises have merged with one another or changed the ownership form, but the process of settling issues relating to finance, land, assets for liquidation, bad debts, etc. lengthened, which have made an impact on the operation of the corporations and other members of the group.

At the meeting, members of the steering committee discussed the plan of arrangement and renewal of state-owned enterprises in Dong Nai Province in the period 2007-2010. Accordingly, equitized enterprises which are now affiliated to a corporation or a group of parent-subsidiary companies will continue to undergo second-phase equitization in order to reduce the proportion of state capital in these enterprises, moving towards the equitization of corporations and parent companies from now until 2010 under the spirit of the Enterprise Law. Regarding those enterprises that are still meeting with difficulties, the steering committee for arrangement and renewal of enterprises of the province will hold a separate meeting with them to settle the issues case by case in a conclusive way.

(Translated by THKC)