EFFECTS OF EQUITIZATION ON FINANCIAL PERFORMANCE OF VIETNAM STATE-OWNED ENTERPRISES.

Abstract

          This paper gives the assessment on the impact of equitization on business performance of state-owned enterprises (SOEs) in Vietnam. The author has selected 43 financial statements of SOEs which are being equitized and listed on the stock exchange. The comparison of financial indicators after and before equitization has indicated some changes in profitability, financial structure, solvency and asset efficiency. The analysis results have shown the weakness of the management team of joint-stock companies when the business environment changes. The results of this study have also led to a number of recommendations for the Government to continue implementing equitization program and concentrate on addressing the limitations of changing management apparatus, creating a competitive environment when pursuing the equitization program at the present.