The Vietnamese Ministry of Construction has submitted to the Government a plan for restructuring the major State-owned construction enterprises, a significant remaining step in the overall process of equitising State-owned enterprises.
The ministry plan would not only hasten the equitisation of State-owned corporations under its management control but also reorganise the largest to form five major construction, engineering and development groups with specialities in such areas as heavy equipment, cement and construction materials, and urban real estate development.
The five State-owned corporations with the leading business performance in the construction sector would be selected to form the core of the five major future groups. The five corporations named in the plan were the Song Da, Lilama, Vietnam Cement Corporation, Vietnam Urban and Industrial Zones Development and Investment Corporation, and Hanoi Construction Corporation.
Enterprises proposed by the ministry for incorporation into these groups would include the Construction Machinery Corp (COMA), Vietnam Construction and Import Export Corp (Vinaconex), Infrastructure Development and Construction Corporation (Licogi), Bach Dang Construction Corporation, Midland Construction Corporation (Cosevco), Vietnam Glass and Construction Ceramics Corporation (Viglacera), Industrial Zone Development and Investment Corporation (IDICO), Building Materials Corporation No1 and Housing and Urban Development Corporation (HUD).
Following the completion of detailed plans, the creation of the five groups would take place in the fourth quarter of this year. The five major groups would be fully equitised to operate under the Law on Enterprises by 2009-10.