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Equitisation helps businesses get competitive (15/10)
06/08/2010 - 95 Lượt xem
During the seminar on equitisation and the securities market, general director of the Ha Noi Securities Joint Stock Company (HSSC), Hoang Anh Tuan, said through equitisation, a firm’s target is not only to enhance its financial capacity but also to improve its production and business performance. Equitisation also helps firms to enter new production and business fields.
Statistics from the Central Steering Committee on Enterprises Renovation and Development showed that after equitisation, firms’ average charter capital surged by 44 per cent while their turnover and profit went up 23.6 and 140 per cent, respectively. Up to 90 per cent of equitised companies reportedly showed a profit.
The prestige and value of equitised firms were also greatly increasing. The committee took Vinamilk as an example. Vinamilk’s corporate value was appraised at US$100 million before its equitisation in 2003. The figure climbed to $150 million a year later and currently reached $970 million.
However, several firms have remained unaware of new corporate management models post-equitisation. According to a survey conducted by the International Financial Company, up to 58 per cent of surveyed firms are not fully aware of current corporate management methods.
Yet corporate management plays a key role in the life of a business. According to recent research on Hong Kong’s CLSA Emerging Markets, the profits of companies whose corporate management is good are five times higher than those with poor management.
"Improvement of corporate management is also a significant opportunity that enterprises can enjoy after equitisation," said Tuan.
Viet Nam has so far retained 2,200 SoEs with a total capital of $31 billion, 1,646 of them due to finalise their equitisation by 2010.
Source: VietnamNews.
