The southern province of Dong Nai plans to equitize five State-owned enterprises (SoEs) and divest non-core business projects in 11 joint stock companies and three banks in 2015, said an official.

Deputy Director of the provincial Department of Finance Huynh Van Hue underlined the need to build specific restructuring plans while outlining measures to improve production and business performance.

To facilitate the reshuffle, he asked for intensifying inspection in order to promptly deal with arising problems during the process.

Photo for illustration. Photo: VNA

State conglomerates should renew their corporate governance while applying standard finance-accounting practices, he said.

Dong Nai aims to equitize about 50 SoEs from 2014-2020.

During 2012-2014, Dong Nai recorded one equitized firm, 10 merger and four divestment deals.

As of December 31st, 2014, it had 11 State-owned enterprises.

In 2014, the equitized firms enjoyed stable production, earning a total revenue of VND 28.1 trillion (nearly USD 1.3 billion), up 1.7 percent against 2013.

Local SOEs have worked to accelerate their restructuring and better define targeted investment fields.

Equitization is a process in which private investors can buy stocks in formerly State-owned businesses. It helps make enterprises more effective, profitable and stable.

Source: VNA