Another 43 State enterprises approved for equitization

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Corporation 36 - The Ministry of Defense is one of 43 enterprises approved for equitization plan in the first 7 months of 2016.

Collect 2,000 billion vnd from the sale of shares

Of these, there are 6 corporations including: Industrial Machinery and Equipment Corporation (a parent company and four subsidiaries), Prime movers Corporation and Vietnam Agricultural Machinery (a parent company and five subsidiaries) under the Ministry of Industry and Trade; Vietnam Construction Consulting Corporation (VNCC) under the Ministry of Construction; Corporation 36 (a parent company and a subsidiary) under the Ministry of Defense; Forestry Corporation (a parent company and six subsidiaries) and the General Agricultural Supplies Corporation under the Ministry of Agriculture and Rural Development.

In the first 7 months of 2016, the corporations equitized 2,870 billion vnd (book value) and collected a total amount of 5,632 billion vnd from the sale of shares. Specifically: corporations and large companies equitized 381 billion vnd (book value) and earned 424 billion vnd from the sale of shares in five sensitive areas (securities, insurance, banking – finance, real estate and investment funds).

Also, enterprises equitized 1,259 billion vnd and earned 1,959 billion vnd from the sale of shares in other sectors. State Capital Investment Corporation (SCIC) equitized 1229 billion vnd and earned 3,248 billion vnd.

According to the Ministry of Finance, in the first 7 months of 2016, corporations and enterprises continued to implement the restructuring scheme of the State enterprises and achieved some remarkable results.

Basically, the economic groups, state corporations and state enterprises have actively implemented the restructuring scheme. The mechanisms and policies on restructuring, reorganization and equitization of State-owned enterprises have been fully enacted, facilitating the operation of enterprises. The effect of state enterprises performance after equitization has been gradually improved.

The number of enterprises implementing equitization plans reached the target of the restructuring scheme. The non-core divestment in 5 sensitive sectors has been readily implemented.

Corporate administration continues to be innovative. The equitization of enterprises has contributed to improving and developing the capital markets, especially the stock market, enabling enterprises after equitization to raise capital and develop management methods and technologies, creating a close relationship between employees and enterprises on the trend of economic integration with the regional and international economy.

In the context of the economy, society is facing many difficulties, the restructuring of State enterprises towards a combination of improving efficiency and competitiveness has had positive results.

State enterprises have basically accomplished their assigned roles and tasks, contributing to the development of the economy and society, ensuring the balance of supply and demand, price stability, poverty alleviation, creating favourable conditions for economic development in regions, especially in remote, border and island areas.

Can not met expectations

However, the Ministry of Finance also acknowledged that because in the first 7 months of 2016, the units had continued to perform equalization in the period 2011-2015 and built, arranged plan of equitization and restructuring under the direction of the Government and the Prime Minister, the progress of state enterprises equitization and divestment has not achieved as expected.

In addition, the units implementing equitization are mostly large-scale, multi-industry businesses with complex financial structure, which requires a lot of time processing.

On the other hand, because the implementation of equitization and restructuring of enterprises with large-scale capital needs the participation of many big investors, with financial strength, effective management capability and investment, it may take a long time to arrange.

In oder to fix and promote the process of equitization and divestment, the projects and policies on reorganization, management and innovation of state enterprises’ operations should be concentrated, constructed and efficient.

Specifically, the authorities will focus on finishing the classification criteria for State-owned enterprises in line with the new situation, including criteria and classification of public service units; guiding other forms of arrangements consistent with the new law; and issued a new decree to replace decrees on equitization, etc.

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On the basis of the new classification criteria, ministries, branches, localities, economic groups and corporations will focus on building the content and submit to the Prime Minister to approve the plan of arrangement of State-owned enterprises innovation and public service units in the period 2016 – 2020.