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Illustrative photo.

According to the Ministry of Finance, the total actual value of 48 enterprises approved for equitization was 31,905 billion vnd and the actual value of the State capital of these enterprises was 23,280 billion vnd.

Under the equitization plan approved by the competent authorities, the charter capital of the 48 enterprises was 23,019 billion vnd, of which State capital was 11,092 billion vnd; 7,473 billion vnd of strategic investors, 342 billion vnd of workers, 6.7 billion vnd of labour unions and the number of shares sold at public auction was 4,103 billion vnd.

Regarding the divestment of capital, in the first 8 months of 2016, these enterprises withdrew 2,921 billion vnd and collected revenues of 5,767 billion vnd.

Corporations and State-owned enterprises withdrew 381 billion vnd and collected revenues of 424 billion vnd in 5 sensitive areas. Outside 5 sensitive areas, corporations and State-owned enterprises withdrew 1,261 billion vnd and collected revenues of 1,968 billion vnd.

The State Capital Investment Corporation (SCIC) withdrew 1.277 billion vnd and collected revenues of 3,374 billion vnd.

In response to the press recently, Mr. Dang Quyet Tien, the Deputy Director of Corporate Finance Department, the Ministry of Finance stated: “With the number of remaining enterprises for equitization not high, mainly large enterprises, the current progress of the equitization plan is still "acceptable". The most important matter in the current period is the quality of the equitization and efficiency of corporate governance.

Regarding a number of measures to promote equitization in the near future, Mr Tien said: “In the process of equitisation, the caution to avoid losses is the priority of functional authorities under Politburo Resolution. Therefore, the functional authorities have realized that the valuation of enterprises still has many shortcomings.

"We also proposed to the Government to allow the State Audit Office of Vietnam to review and determine the valuation of enterprises; and assess the quality of the consulting firm to ensure the accuracy of this operation", said Mr Tien. These solutions will create more confidence for investors to update information about the enterprises.

Currently, the Ministry of Finance is also submitting the Government to amend Decree No 59/2011/ ND-CP on transformation of enterprises with 100% State capital into joint-stock companies. Specifically, the Ministry of Finance proposed to open up some forms of sale of shares and added more contents of decentralization to agencies of State-owned enterprises, to reduce administrative procedures and create more opportunities for the Steering Committee with more plans of equitization.

Although the details mentioned above are still to be revised, a representative of the Ministry of Finance said that the functional authorities should not wait for the promulgation of the new Decree, but could consult the Prime Minister to implement immediately, in order to ensure the highest efficiency, prevent fraud, losses and avoid slowness of implementation.

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These solutions are expected to resolve the problems of equitization which has been ineffective in recent times.