Military enterprises await restructuring
18:03' 04/04/2008 (GMT+7)

VietNamNet Bridge – Eighty four State-owned enterprises under the Ministry of Defence (MoD) will be converted into one member, limited-liability companies under a renewal plan for the 2008-2010 period, Prime Minister Nguyen Tan Dung, confirmed this week.

According to the plan, 14 other businesses will operate under the parent-subsidiary model, 12 companies will be equitised and three enterprises will be dissolved.

The Prime Minister also asked Defence Minister, Phung Quang Thanh to provide solid guidance for the renewal of State-owned companies in line with the contents and schedule of the plan.

The Defence Ministry was requested to co-operate with the Finance Ministry, the Ministry for Labour, Invalids and Social Affairs, and the Ministry for Natural Resources and Environment to work out policies to look after employees affected by the changes - and about using defence land in accordance with the Government policy (Decree No 60/NQ-CP, issued December 3, 2007).

Late last year, the National Assembly Standing Committee discussed the changes, focusing on taking commercial businesses away from the military.

According to the Chairman of the Defence and Security Committee, Le Quang Binh, a survey conducted by the committee showed the businesses were on a small scale, had limited investment and used out-of-date technology. This made it hard to develop them into modern, efficient businesses.

Chairman of the Financial and Budgetary Committee, Phung Quoc Hien, said that military enterprises should be treated on equal terms with those in other economic sectors.

However, now and for the foreseeable future, enterprises producing weapons and military technical equipment would remain under the MoD's control.

However, Minister Thanh affirmed that enterprises supplying the defence industry should be managed by the Government and other ministries, rather than the Defence Ministry.

It was really difficult for the ministry to be both a manager and a customer of businesses, he said, calling for a roadmap for change.

(Source: Viet Nam News)

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