Hopes abound that a new Decree will drag the near-moribund
process of privatising large State-owned enterprises (SOEs) into a
new and more efficient phase.
Over the past 30 years, the restructuring of SOEs has been a key
component of Vietnam's economic reforms under Doi Moi
(renovation). The process has been undertaken by successive
governments and is a central pillar to creating the
business-friendly climate desired by the current leadership.
Nevertheless, it remains largely a work in progress. According
to a report by the Central Institute for Economic Management
(CIEM), since 1992, Vietnam has 'equitised' over 4,500
enterprises ('privatized' being considered an unsuitable
term for Vietnam and not always accurate anyway given the
propensity for the State to maintain controlling stakes). The fact
is that many of these took place in a short period of time and were
smaller production units of large conglomerate-type corporations.
The CIEM report concluded that
