How are transport enterprises after equitization?

Enterprises after equitization have become enterprises operating in the market with extremely stable development.

According to Deputy Minister of Transport Nguyen Hong Truong, through summarizing the work of restructuring and equitization (Equity) of transport enterprises, many positive results have been achieved. Equity has made the financial situation of enterprises extremely healthy and has made steady development steps. Workers' income has increased, equity/loan capital has decreased from nearly 3.0 to 1.7, while the assets of enterprises have increased, creating healthy competition in the market.

In particular, the enterprises after equitization have developed and stood firm. Previously, enterprises needed great support from the Ministry of Transport, but now the enterprises after equitization have become enterprises operating in the market with extremely solid development.

Deputy Minister of Transport Nguyen Hong Truong highly appreciated the equitization of transport enterprises.

However, the biggest problem of the transport sector enterprises after equitization is still the settlement of regimes for employees. According to Deputy Minister Nguyen Hong Truong, in some transport sector enterprises after equitization, there is a very large surplus of labor. The Ministry of Transport has also worked with the Ministry of Labor, Invalids and Social Affairs as well as the Government to resolve regimes for employees, especially the regime for employees who do not have enough retirement regimes in the spirit of Decree 91. At the same time, the Ministry of Transport directs enterprises to continue to remove obstacles and create new jobs for employees at different levels.

Construction of Hoang Mai - Thai Hoa route. Photo by Thu Huyen.

On the other hand, in the implementation of the tasks of enterprises, in the past, enterprises expanded to participate in many fields, but after equitization, they were only allowed to do the fields in their own industry. Therefore, these enterprises also encountered many difficulties due to competition in the market, leading to stronger investment in technology and equipment, which in turn led to difficulties in capital investment for enterprises. While enterprises still focused mainly on loans, the enterprise's own capital needed to be gradually resolved to meet the requirements.

Deputy Minister Nguyen Hong Truong also commented that one of the factors after restructuring is that enterprises have become investors and attracted a very high level of socialized capital. Currently, many enterprises under the Ministry of Transport have become large investors, investing in transport infrastructure projects in the form of BOT, PPP or other similar forms to develop enterprises in the most sustainable way./.

According to VOV