Ho Chi Minh City People's Committee has just sent a report to the Ministry of Finance on the situation and results of converting public non-business units into joint-stock companies in 2025 and the period 2021 - 2025.
After merging with Binh Duong and Ba Ria - Vung Tau, Ho Chi Minh City currently has 48 public non-business units directly under the Ho Chi Minh City People's Committee; 528 units under departments, agencies, and branches; along with 2,026 public non-business units under commune-level People's Committees.
Although 82 units have been reviewed and included in the expected conversion area before the merger, Ho Chi Minh City has not yet had any public non-business units converted into enterprises.
The reason is that some units have unstable revenue sources and reduced revenue, such as the Institute of Occupational Safety and Health Science. Some other units have problems with tax debts with large amounts, typically the Sports and Physical Training Service Center.
Many units are too small in scale, with staff of less than 5 people, without their own headquarters, or the remaining asset value is less than 200 million VND, such as the Center for Economic Application Counseling or the Institute of Construction Planning.
For Market Management Boards, difficulties are becoming more complicated. The trend of consumption is shifting strongly from traditional markets to commercial centers and e-commerce, causing purchasing power at the market to decrease significantly, and many business stalls are not fully filled.
If switching to the joint-stock company model, the service price using the sales area must be fully calculated, leading to price increases, affecting the business psychology of small traders, making investors not enthusiastic.
In addition, many traditional markets are small in scale, some markets temporarily use sidewalks and roads, forcing them to be rearranged; some markets are classified as historical and cultural relics, so they must be maintained and preserved according to regulations. Some markets have part of their assets owned by private individuals, causing difficulties in determining the value of state capital when equitized.
Currently, Ho Chi Minh City is focusing on implementing the rearrangement of public non-business units. It is expected that the Binh Duong Vocational Education - Driver Testing Center will merge into Ho Chi Minh City College of Transport. The Binh Duong Traffic Works Management and Repair section will be merged into the Ho Chi Minh City Traffic Works Construction Investment Project Management Board.
Some Market Management Boards, Public Works Management Boards of Con Dao district, and Con Dao District Water Supply Station are expected to merge into Public Service Supply Centers in wards and communes.
The Bus Station Management Boards will merge into Saigon Transport Mechanical Corporation - One Member Limited Liability Company, while the Motor Vehicle Registration Centers are also considered for merger.
From the above reality, the Ho Chi Minh City People's Committee proposes to temporarily not submit to the Prime Minister for approval the list of public non-business units converted into joint-stock companies.
After completing the arrangement and reorganization of public non-business units and when the Prime Minister issues a list of sectors and fields to be converted for the next period, Ho Chi Minh City will continue to review and propose in accordance with regulations.
