Avoid "noisy" like the VFS, the Ministry of Finance to select conditions for strategic shareholders when equitization

Mr. Dang Quyet Tien is answering the newspapers

Mr. Dang Quyet Tien, Deputy Director of the Finance Department of the Ministry of Finance, said at the briefing on 27 September that, through summarizing the equitization to prepare for equitizing the SOEs in the period 2016-2020, the Ministry of Finance has been in charge of drafting a decree regulating the transfer of SOEs and one-member limited liability companies, which are invested by 100% charter capital into equitized enterprises, to replace Decree No.59/2011/ND-CP, Decree No.189/2013/ND-CP and Decree No.116/2015/ND-CP.

One of the important contents in this draft regulation is to adjust the selection criteria and have the policy to sell shares to strategic shareholders for equitization.

According to Mr. Tien, the current regulations, strategic investors to buy shares in equitized enterprises are obliged to provide the resources as committed to enterprises but not sold shares within 5 years leading to the interests of the strategic investors are limited in comparison with their duty.

The sale of shares to strategic investors may implement the agreement before the public auction with the criteria for selection of strategic investors submitted by the equitization Steering Committee to the competent authorities to decide the plan does not guarantee the transparency, nor the loss of state capital.

In order to overcome the above limitation, the draft decree replaces the criteria in addition to the liability and sanctions to implement commitments to strategic shareholders. Accordingly, investors registered to become strategic investors must meet the following conditions: Qualified legal entity; Having financial capability and having business results in the last two years, it must be profitable and have no accumulated loss.

In particular, investors must have a written commitment when registering to become a strategic investor in maintaining the core business and brand name of equitized enterprises for at least 3 years; Not transfer the number of shares purchased within 3 years; There are plans to support post-equitized enterprises in transferring new technologies, training human resources, etc.

The draft also specifies the procedure for the sale of shares to strategic investors, in which the sale of shares to strategic investors after the public auction at a price not lower than the average successful bid price of the public auction. The first sale of shares to strategic investors only applies to enterprises on the list of State continue to hold more than 50% of total shares when equitization under the decision of the Prime Minister.

Back to the topic of selecting the wrong strategic partner of the VFS, the press reporters questioned "The shareholders continue to debate while there is still a part of the state capital in the stagnant enterprises. How to solve this situation for a business to continue to develop? "

Answering the above question, Mr. Dang Quyet Tien said: "Choosing strategic investors not the right industry is all of our errors. Being an employee in the enterprise must be responsible to understand who his boss is and how to use them. Equitization is the process of turning employees into part of business owners. According to the process, since the draft equitization plan, the unit had to meet the whole workers to disseminate and organize the meeting to receive comments after selecting. If the employee discovers the wrong object, then report it to the business leaders for consideration. The problem here lies in both two sides, while the employees have not paid enough attention and their responsibility, the equitized Steering Committee has not listened attentively to clearly understand employees’ expectation and thought".

In the equitisation process, the stages are very specific. If the units do the right thing and have regular supervision and inspection of the union, the workers, etc., the results will be better.

Exchanging more about the case of the VFS, Mr. Tien said: The post-equilibrium use of land has been specified in the Land Law, in the mechanisms and policies on equitisation and planning of local government. This issue was directly assigned to the Government Inspectorate by the Prime Minister. The problem of right or wrong in the equitization process must wait for the final conclusion of the inspection agency. All issues related to equitization film studios are currently postponed to wait.