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Vietnam shares experiences on state enterprise equitisation
Laos is looking to learn from Vietnam about how to equitise state owned enterprises as part of the nation's effort to mobilise long-term investment funding to boost its economic development.
On Friday, the Lao Securities Exchange Commission Office held a seminar on equitisation of state enterprises in Vientiane, giving representatives of several Lao state owned enterprises the opportunity to learn from the experiences of Vietnam, which shares the same political ideology as Laos.
Speaking at the seminar, the Bank of the Lao PDR Deputy Governor Mr Bounsong Sommalavong said that it was the first time that the Lao government has invited Vietnamese officials to share their experiences of capital market development and equitisation of state owned enterprises.
At the half-day seminar, the State Securities Commission of Vietnam Chairman, Mr Vu Bang, spoke about capital market development in Vietnam and the Vietnamese Ministry of Finance's Corporate Finance Director General, Mr Tran Huu Tien, made a presentation on the equitisation of Vietnam's state owned enterprises.
Mr. Tien said that Vietnam has transformed state enterprises - in which it is not necessary for the government to own 100 percent - to mobilise capital from domestic and foreign investors to strengthen financial capacity, technology, innovation, management and corporate philosophy in order to improve the efficiency and competitiveness of the economy.
In addition, the equitisation of state enterprises encourages transparency and public accountability in accordance with market principles, prevents international ownership of the enterprise and promotes the capital and securities market, he added.
According to Mr. Tien, 3,949 state owned enterprises have been equitised. Of these, 1,655 – 42 percent – are under the auspices of the central government, while the rest are at the provincial level.
vientiane times
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