The privatization of
State-owned enterprises as a road to success?
A land-mark-initiative has
been framed by the international business community: The idea has
been expressed to promote privatization of State-owned enterprises
in Vietnam; but one thing at a time:
Starting point is the
current financial situation of the Vietnamese state coffers:
Revenues from taxes have become smaller as the economy is going
through a difficult time. In addition the WTO commitments have
caused a severe reduction of import tax and duties. In this context
the government has applied for an increase of the State budget
deficit to rise from 4.8% to 5.3% of GDP in the previous year (in
the 4th quarter 2013). Simultaneously, the gross market
value of the 12 top State- owned companies among the top 20 largest
companies listed on the Ho Chi Minh City Stock Exchange is said to
be US$ 18.5 billion in market capitalization, approximately,
accounting for 41% of the value of the entire HCMC
