Downsizing of state enterprises
initial step 1. We met Mr. Le Trung Tien, director of construction 57 construction companies in Hanoi 2. Mr Tien had to admit that after 27 years of dedication to the company, now he is no longer fit well. But only until mid-October, he and 252 other workers will leave the company after a cash industry and enjoy some other perks. This is the workers on the payroll first state to voluntarily leave as the government's new program (to be piloted in seven SOEs) to promote the downsizing of SOEs water which is excess labor. 2. Valued at $ 400 million by the World Bank and other donor funding, this program aims to mitigate the burden of payroll to the state enterprises are debt-ridden; This will contribute to accelerate the process of privatization and resolving doubtful debts are forcing banks to state-owned reel. 3. Compared with China, the number of redundant workers in state enterprises in Vietnam is not much. Since Vietnam has more than 80% of the population live on agriculture, so in 5650 the staff of state enterprises only 1.6 million people, and 400,000 of them will be laid off in the next 5 years. However this is a sensitive issue politically. The fate of those who were laid off, including many senior party members, will be like? 4. Anyway faltering business situation of state enterprises also make clear that reform is necessary. By the end of last year, the total debt of state enterprises amounted to 190 trillion, about 10 times the value of the assets they have. Moreover, the Vietnamese government has also committed to the International Monetary Fund on a tight schedule reform should not be delayed further downsizing of the enterprises in this. 5. To encourage employees to voluntarily resign, the state is offering a package of measures with many attractive deals. At the end of the 80s and early 90s, retired state employees are paid only a little local money and not receiving pensions. But now the government has been largely left out more: just a year for the state, workers are paid 2 months dongse basic salary, a lump of money of 5 million, more full salary for six months after quitting, and still receive monthly pension when they start to tuoinghi retirement. 6. Does the program achieve its objectives or not - we can not foretell. But remember that downsizing is just one small measure to improve competitiveness. The managers of state enterprises need to prove that his company can be profitable without a social security system with subsidies unfailing from government.
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