Electricity du Lao will remain a state-owned enterprise but will have a comprehensive reform, Minister of Finance Bounchome Oubonpaseuth told the ongoing 3rd Odinary Session of the National Assembly on Jun 22.
Other four strategic enterprises are also subject to a comprehensive restructuring, according to the minister.
Lao Airlines, Agriculture Development Export- Import, and Lao State Fuel Enterprise will be operated as joint venture companies with local businesses on the condition that government holds at least 51% of the shares.
There are 178 state enterprises across the Lao PDR, representing 0.12% of the total enterprises in the country, and with a total registered capital of 28 trillion kip, equivalent to 6% of the total capital of all enterprises in the country.
In 2020, the Ministry of Finance evaluated the financial capability of state-own and public-private enterprises using indicators recorded between 2016 and 2018.
The findings suggested that 12 enterprises perfumed well, 17 delivered acceptable performance and 12 were classified as poor-performing firms, including 11 state-owned companies.
State enterprises are vulnerable and tend to experience risks in the future, the study suggested. Meanwhile enterprises in which government as a shareholder tend to deliver better financial performance.
EDL Generation Public (EDL Gen) will be reformed comprehensively and separated from Electricite du Lao (EDL), currently with a chronic debt.
The Standing Committee of the National Assembly has urged the government and relevant ministries to urgently reform the strategic state enterprises to prevent additional loss to the government budget and increasing public debts.
It also asks the government to devise a state enterprise development strategy and vision according to sustainable and socialist trends.
Source: Lao News Agency
