Home Projects Project Data Sheet
|Loan Name||SOE Reform and Corporate Governance Facilitation Program - Project 1|
|Country||Viet Nam,Soc Rep of|
|Project Number||39538- 02|
|Source of Funding/Amount[Approved]||
Private Sector Development
|Sector/Subsector||Public Sector Management / Economic and Public Affairs Management|
|Outcome||Progress Toward Outcome|
Participating general corporations are transformed into focused, efficient businesses with strong balance
sheets and improved corporate governance.
|Implementation of 1st tranche under which restructuring of 2 selected SOEs (Sowatco and Song Da Holdings) is in progress.|
|Outputs||Status of Implementation Progress (Outputs, Activities and Issues)|
1. Debt restructuring implemented, combining financial and corporate restructuring
2. Increased operational efficiency and improved corporate governance of general corporations and other SOEs
3. Institutions supporting key aspects of SOE reform strengthened and governance improved
1. Procedures and steps needed to allow for disbursement of OCR funds under debt restructuring component have been clarified. Disbursements effected to creditor banks effective 16 December 2011. The OCR funds was used to re-finance short-term debts of Sowatco and Song Da, thus improve their cash flows. The contract between Sowatco and Ernst and Young (E&Y) was signed in November 2011 while the contract between McKinsey and Song Da was signed in December 2011. The two consulting firms have been engaged to assist Sowatco and Song Da in their corporate restructuring. E&Y commenced in November 2011 and has been updating Sowatco's restructuring plan for approval in July 2012. McKinsey commenced work in February 2012 and has just completed a comprehensive diagnostic assessment of Song Da Holdings in May 2012. Song Da's restructuring plan is expected to be approved in July 2012.
2. Work on operational efficiency and improved corporate governance will commence after the approval of the restructuring plan in July 2012.
3. DATC was identified as the government institution to support key aspects of SOE reforms. A team of consultants was engaged in early 2012 to undertake a diagnostic assessment of the legal, financial and capacity of DATc to carry out its core mandates. The reports of the consultant team is being reviewed by the government and will determine the nature and timeline of the capacity support required for DATC a decision expected by end June 2012.
|Geographical Location||Viet Nam|
|Responsible ADB Officer||
Prasanna Kumar Jena
|Responsible ADB Department||
Southeast Asia Department
|Responsible ADB Division|
|Concept Clearance||12 Mar 2009|
|Fact-finding||02 Mar 2009 to 06 Mar 2009|
|Appraisal||13 Aug 2009 to 17 Aug 2009|
|Board Approval||14 Jan 2010|
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