Bird flu epidemic and diseases in farm animals including blue-ear and foot-and-mouth in pigs and cattle have been put under control in most localities nationwide during the last two weeks.
Workers produce plastic pipes at the Tien Phong Plastic JSC. Under a new draft decision on the criteria to name groups and corporations, enterprises need to have a minimum charter capital of VND1 trillion (US$47.6 million) to be named as groups or corporations. — VNA/VNS Photo Tran Viet
Under the draft, which is being mulled by the Ministry of Planning and Investment, enterprises can be named as corporations if they have minimum charter capital of VND500 billion ($24 million) and own over 50 per cent of at least three other firms.
Minh Phu Seafood Group chairman cum general director Le Van Quang spoke highly of the draft, even though his enterprise failed to meet the criteria for group status as it only has a charter capital of VND700 billion (over $33 million).
There should be a uniform rule for the naming of groups in order to avoid abuse of the name that could negatively impact the nature of the group model, Quang told Dau Tu (Investment) newspaper.
"We are preparing to raise our charter capital to VND1 trillion. Even though this is a pre-defined goal in our development, I have to say that there should be time for businesses to ensure compliance with the criteria, " Quang said.
A minimum charter capital of VND1 trillion was not a big problem for existing large groups, said Pham Duc Trung from the Central Institute for Economic Management.
But it was unfeasible to apply the criteria to newly-established businesses, he said.
In 2009, the Government issued Decree No 101/2009/ND-CP on piloting the establishment, organisation, operation and management of State economic groups.
There have been 12 State economic groups involved in sectors including post and telecommunications, information technology, ship building and repair, electricity, petroleum, textiles and garment, rubber, finance and banking and insurance.
However, many State economic groups were suffering losses due to high levels of investment in securities or real estate development that were outside of their core line of business, according to a recent Party survey of 31 State-owned corporations and economic groups.
In the first eight months of this year, the PetroVietnam Group had the greatest non-core investments at VND6.69 trillion ($321.6 million), accounting for 3.76 per cent of its charter capital, followed by the Rubber Industrial Group with non-core investments of VND3.7 trillion ($177.88 million), or 19.8 per cent of its charter capital.
Electricity of Viet Nam (EVN) had a total investment VND2.1 trillion ($100.9 million) in such sectors as hotels and tourism, real estate, infrastructure development and industrial zones, the survey noted. — VNS