Business

Defense Ministry to restructure military businesses

SGGP
The Ministry of Defense will hold 100 percent state capital at 17 military companies on behalf of the state by 2020 while the remaining companies will be equitized, restructured or dissolved if they are under performance.
 
That was announced at a conference hosted by the ministry yesterday in Hanoi to implement the military firm restructuring project by 2020 approved by the Prime Minister.
Stating at the conference, deputy Minister of Defense Tran Don said that the ministry has implemented five PM approved projects to restructure military businesses since 2001.
They have been organized with different methods suiting state business development requirements according to party resolutions through phases to well serve defense missions and contribute in developing the country’s economy and society.
At present, there are 88 stated owned businesses under the ministry. Of these, many are small scaled operating in the same field and area. Business structure has been unreasonable. After a long time of operation, some have left financial backlogs which have not been solved so far. Some have owned workers’ wage, social insurance and taxes.
After the conference, head of Economic Department under the ministry Vo Hong Thang, said that through reorganizations, the number of stated owned military businesses has reduced from over 300 in 2000 to 88 companies now. In addition, the ministry is managing 21 joint stock companies having state capital.
About 90 percent of these are well performing and profitable including Viettel, Saigon Newport Corporation and Vietnam Helicopter Corporation.
Military businesses are expected to get the revenue off VND379 trillion (US$16.68 billion) and pay VND43 trillion to the state budget this year. About 183,000 people are working for these companies.
After restructuring, each military business will have only two automobiles of red number plates to perform defense missions. The remaining number will be changed into civilian number plates.
So far, over 1,400 military automobiles have changed into civilian plate numbers. The ministry will tighten defense land management to ensure that the land is used for right missions and functions.

By TRAN LUU – Transated by Hai Mien

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