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Overview of the SOE Reform in Vietnam

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Despite the gradual shift towards a market economy that commenced in 1986, and in spite of the emphasis on state owned enterprise (SOE) reform and privatization in the structural adjustment programs formulated since the mid-1990s, the state sector continues to play a leading role in the Vietnamese economy. The dominant position of the state sector is confirmed in official statistics and a variety of studies on the Vietnamese economy. | SOE Reform in Vietnam Background Paper Prepared by Mekong Economics November 2002 Background Paper 2 Table of Contents Recent Development of Vietnam s SOE Sector.4 Salient Features of the SOE Sector in Vietnam.4 Economic Activities.4 Number of Enterprises.6 Capital Scale.6 Employment Size.7 Geographic Distribution.8 The Role of SOEs in the Economy.10 GDP Share of SOEs.10 Job and Income Generation.12 National Budget Share.12 Economic Performance of SOEs.13 Policy Framework for SOE Development and Reform.18 Overview of the SOE Reform in Vietnam.18 Milestones in the Process of SOE reforms throughout Party Congresses.19 The Launch of Doi Moi at the Sixth Party Congress.19 The Seventh Party Congress.19 The Eighth Party Congress.19 Resolution of the 3rd Party Plenum of the 9th Central Party Standing Committee.20 Key Programs of SOE Reforms.25 Reforms in SOE Management Mechanism.25 Restructure of SOEs.25 Reorganization of General Corporations.26 Equitization of SOEs.27 Other Ownership Transformations.29 Debts and Assets Treatment.30 The SOE Reform Agenda Achievements and Remaining Constraints.30 How are International Donors Supporting Reforms .34 The SOE Reform A Case Study of the Textile Sector.37 Ownership Structure of the Textile Sector.37 Restructuring in the Textile Sector.38 Bibliography.40 Vietnam SOE Sector Study produced by Mekong Economics Background Paper 3 Abbreviations CP CPV GDP GSO GCs HDBT IMF MOF MOLISA ND NSCERD OOG OECF QD SOEs SRV TTg VND WB Government used in legal documents Communist Party of Vietnam Gross Domestic Product General Statistical Office General Co rporations Minister Committee Government now used in legal documents International Monetary Fund Ministry of Finance Ministry of Labors Invalids and Social Affairs Decree used in legal documents National Steering Committee for Enterprise Reform and Development Office of Government Overseas Economic Cooperation Fund Decision used in legal documents State-Owned Enterprises Socialist Republic of .

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