The Prime Minister has decided to end a pilot model of two construction groups nearly three years after they were established.
The two groups are the Vietnam Industrial Construction Group (VNIC) and the Vietnam Housing and Urban Development Group (HUD). The PM also assigned the Minister of Construction to reorganise a number of businesses in the sector and establish several corporations.
According to Pham Viet Muon, deputy head of the Steering Committee on Corporate Renovation and Development, the Government found that the two construction groups failed to meet set targets, under which they would become major construction groups and contractors dominating the real estate market.
The core corporations of the two groups also failed to perform their core role, he added. “Pilot models can be successful or not. If they are not successful, they must be corrected timely,” Muon said.
Except for VNIC, HDU and the Vietnam Shipbuilding Industry Group (Vinashin), eight out of the 11 pilot groups have seen good operations, he noted. “I think we have been successful in implementing the Party’s policy of forming economic groups on a trial basis,” he said.
Earlier, the Government Office said that the Government plans to reduce the number of State-owned economic groups to 5-7 from the current 11. The government will only retain major groups important to national interests, including oil and gas, electricity and telecommunications while the remaining will be reorganised./.
The two groups are the Vietnam Industrial Construction Group (VNIC) and the Vietnam Housing and Urban Development Group (HUD). The PM also assigned the Minister of Construction to reorganise a number of businesses in the sector and establish several corporations.
According to Pham Viet Muon, deputy head of the Steering Committee on Corporate Renovation and Development, the Government found that the two construction groups failed to meet set targets, under which they would become major construction groups and contractors dominating the real estate market.
The core corporations of the two groups also failed to perform their core role, he added. “Pilot models can be successful or not. If they are not successful, they must be corrected timely,” Muon said.
Except for VNIC, HDU and the Vietnam Shipbuilding Industry Group (Vinashin), eight out of the 11 pilot groups have seen good operations, he noted. “I think we have been successful in implementing the Party’s policy of forming economic groups on a trial basis,” he said.
Earlier, the Government Office said that the Government plans to reduce the number of State-owned economic groups to 5-7 from the current 11. The government will only retain major groups important to national interests, including oil and gas, electricity and telecommunications while the remaining will be reorganised./.
