Viet Nam: MFF- SOE Reform and Corporate Governance Facilitation Program

Sovereign Project | 39538-013

Summary

The SRCGFP will support the agenda of the Government of Viet Nam for state-owned enterprise (SOE) reform by equitizing and transforming general corporations. Participating general corporations will be restructured under a comprehensive package of corporate and financial restructuring and enhanced operational efficiency and corporate governance. Debt restructuring will strengthen general corporation balance sheets through improved cash flows and debt-servicing capacity, generating additional resources for productive activities. None of the restructured debt will be nonperforming loans. Corporate restructuring will enable participating general corporations to exploit economies of both scale and scope by merging several small joint stock subsidiaries in each general corporation into larger entities organized along lines of business, combined with the divestiture of disparate non-core business units.

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Project Name MFF- SOE Reform and Corporate Governance Facilitation Program
Project Number 39538-013
Country Viet Nam
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
MFF Facility Concept 0041-VIE: MFF- SOE Reform and Corporate Governance Facilitation Program
Ordinary capital resources US$ 600.00 million
Asian Development Fund US$ 30.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Public sector management - Economic affairs management

Gender Equity and Mainstreaming No gender elements
Description The SRCGFP will support the agenda of the Government of Viet Nam for state-owned enterprise (SOE) reform by equitizing and transforming general corporations. Participating general corporations will be restructured under a comprehensive package of corporate and financial restructuring and enhanced operational efficiency and corporate governance. Debt restructuring will strengthen general corporation balance sheets through improved cash flows and debt-servicing capacity, generating additional resources for productive activities. None of the restructured debt will be nonperforming loans. Corporate restructuring will enable participating general corporations to exploit economies of both scale and scope by merging several small joint stock subsidiaries in each general corporation into larger entities organized along lines of business, combined with the divestiture of disparate non-core business units. Additionally, management restructuring will enhance operational efficiency by strengthening corporate management processes and improving governance. OCR will be used to support financial and corporate restructuring, while operational restructuring and improved corporate governance will be supported by the complementary loan component funded from ADF resources.
Project Rationale and Linkage to Country/Regional Strategy Transforming and reforming are critical to reducing the dominance of inefficient state production, promoting private sector development, and enhancing economic growth. The Goverment's Socio-Economic Development Plan 2006-2010 calls for diversifying ownership to improve the efficiency and competitiveness of SOEs and for narrowing or eliminating the role of ministries and other state entities in SOE governance and management.
Impact Improved profitability and transparency of equitized and restructured SOEs, including large general corporations and their subsidiaries
Project Outcome
Description of Outcome

Participating general corporations are transformed into focused, efficient businesses with strong balance

sheets and improved corporate governance.

Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Debt restructuring implemented, combining financial and corporate restructuring

Increased operational efficiency and improved corporate governance of general corporations and other SOEs

Institutions supporting key aspects of SOE reform strengthened and governance improved

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nationwide
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design none
During Project Implementation none
Business Opportunities
Consulting Services TBD
Procurement TBD
Responsible ADB Officer Prasanna Kumar Jena
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SERD
Timetable
Concept Clearance 12 Mar 2009
Fact Finding 02 Mar 2009 to 06 Mar 2009
MRM 15 Jul 2009
Approval 14 Dec 2009
Last Review Mission -
PDS Creation Date 31 Jul 2009
Last PDS Update 31 Mar 2015

MFF Facility Concept 0041-VIE

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 1,180.00 Cumulative Contract Awards
ADB 630.00 - 0.00 0.00 %
Counterpart 550.00 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

Safeguard Documents

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Evaluation Documents

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