Vietnam is one of the fastest-growing economies in the world. The low cost of living and highly qualified population make it an ideal location for foreign companies who are looking to branch out and invest. However, expanding internationally has its disadvantages as well. Not knowing the local laws and regulations makes it a thousand times harder to open a company overseas.
Vietnam Province Seeks Investments For Multi-Billion Dollar Projects
Vietnam province seeks investments for multi-billion dollar projects
Table of contents
View all
Table of contents
View all
The Vietnamese government has approved a scheme on restructuring state economic groups and corporations and an action plan will soon be issued, said Minister of Finance Vuong Dinh Hue
source: toy-tma.com
The most important objective of the scheme is aimed to improve corporate management and governance skills, especially financial administration, Hue noted.
“Given the high lending rates and inflation, enterprises must save themselves by restructuring and financial administration,” he said.
Under the leadership of the ministry, state groups and corporations will begin restructuring with specific actions, including tight control, cutting production and management costs, and reducing product prices.
Such actions will be first rolled out by Bao Viet Group, where the finance ministry holds a dominant stake of 70%. The ministry also holds majority stakes in Bao Viet’s subsidiaries, all of which are listed in the restructuring portfolio, such as banks, insurance and securities firms.
Nguyen Thi Phuc Lam, general director of Bao Viet, estimated spending reductions would help the group save VND145 billion this year.
After Bao Viet, other State groups to publicize their specific spending reduction and restructuring plans will be Vietnam National Garment and Textile Group (Vinatex), Vietnam Electricity Group (EVN), Vietnam National Petroleum Corporation (Petrolimex) and Vietnam National Shipping Lines (Vinalines).
Comment