Industry leadership incentives proposed for four state-owned giants

By Minh Son March 11, 2021 | 09:50 pm PT

Oil tanker seen at Dung Quat Oil Refinery operated by Petrovietnam in Quang Ngai Province, central Vietnam. Photo courtesy of Petrovietnam.

The Vietnamese government is considering drafting favorable policies to make four more state-owned companies, in addition to three others proposed earlier, leaders of their respective industries.

They are Vietnam Posts and Telecommunications Group (VNPT), Vietnam Oil and Gas Group (Petrovietnam), Saigon Newport Corporation, and Vietcombank.

The Ministry of Planning and Investment had earlier listed Viettel, Mobifone and Vietnam Electricity.

Favorable mechanisms and policies will be created to enable the seven to achieve breakthroughs in their industry, helping the country achieve its growth targets.

But the ministry has not said what policies it has in mind.

It selected them based on factors like having total assets of over VND20 trillion ($868 million), a return on equity ratio of over 6 percent and the capability to secure a 30 percent market share.

State-owned companies account for 0.07 percent of the total number in the country but 7 percent of total assets, and contribute over 29 percent of GDP, according to the ministry.