Vietnam Issues Plan to Privatize Enterprises

Vietnam’s Communist government gave its clearest road map yet for reform of its inefficient state-owned enterprises, issuing guidelines to privatize most of them while retaining full ownership of industries ranging from cigarettes to power transmission.

The government will retain full ownership of enterprises in five categories, including publishing and enterprises that improve rural living conditions. It also will retain major state corporations involved in key industries such as oil and gas and mining.

The guidelines, signed by Prime Minister Phan Van Khai, take effect this month.

Reforms began in 1992 but quickly bogged down because of resistance from managers at state enterprises and debate over whether privatization would threaten the country’s socialist system.