Collecting VND2,180 billion from divestment in 7 months

VCN - In seven months of 2022, the corporations and SOEs divested VND 382 billion, earning VND2,180 billion. According to the assessment, in seven months of 2022, the progress of equitization and divestment is slow.
In seven months of 2022, the corporations and SOEs divested VND 382 billion
In seven months of 2022, the corporations and SOEs divested VND 382 billion

Adding one equitized enterprise

According to the report of Ministry of Finance, in the first seven months of 2022, the units continue to implement the equitization work as planned. In addition, an enterprise was added that was An Giang Ferry One Member Company Limited (officially transformed into a joint stock company in 2021) to the list of equitization for the period 2017-2020. The list has been approved by the Prime Minister with a total enterprise value of VND309 billion, of which the actual value of state capital is VND278 billion.

In terms of divestment, in July 2022, the units continued to conduct divestment, however, there were unsuccessful divestment units (such as the case of Vietnam Education Publishing One Member Limited Company divesting at Vinh Long Company).

Accumulated in the first seven months of 2022, corporations and SOEs divested from enterprises with a value of VND382 billion, earning VND2,180 billion.

SCIC sold capital in 17 enterprises with a value of VND128 billion, earning VND687 billion; Vietnam Post Corporation divested from Post Joint Stock Company with a value of VND182 billion, earning VND1,409 billion; Vietnam Education Publishing One Member Company Limited divested capital from Tan Mai Group Joint Stock Company with a value of VND72 billion, earning VND83 billion, Mobifone Telecommunications Corporation divested capital from Southeast Asia Commercial Joint Stock Bank with a value of VND0.06 billion, earning VND0.35 billion.

In terms of the completion of mechanisms and policies for equitization, divestment and restructuring of SOEs, the Corporate Finance Department (Ministry of Finance) said that the system of legal mechanisms and policies serves for the process of SOE restructuring has been fully implemented and continues to be researched and perfected, ensuring publicity, transparency, maximizing the benefits of the State, removing difficulties and obstacles in order to accelerate the equitization and divestment progress. Limiting the loss of capital and state assets in the process of equitization, divestment and restructuring of SOEs.

Ministry of Finance submitted to the Government for promulgation Decree No. 148/2021/ND-CP on management and use of revenue from the conversion of enterprises’ ownership, public non-business units, and revenue from state capital transfer and the difference in equity is larger than the charter capital at the enterprise. Decision No. 360/2022/QD-TTg approves the project "Restructuring SOEs, focusing on economic groups and state-owned corporations in the period of 2021-2025".

At the same time, the Ministry of Finance has issued three Circulars including Circular No. 119/2021/TT-BTC amending and supplementing Circular No. 83/2018/TT-BTC of the Ministry of Finance guiding the transfer of the rights of representative state owners in SCIC; Circular No. 05/2022/TT-BTC guiding the restructuring of enterprises that are not eligible for equitization and transfer of shares with receivables of enterprises in which 100% charter capital is held by the State with the function of purchase, sale and settlement of debts/ Circular No. 07/2022/TT-BTC guides the handover, receipt and handling of debts and assets except when converting ownership of enterprises or public non-business units and following the direction of the Government and Prime Minister.

Strictly handling slowness and violations of regulations on equitization and divestment

According to the assessment, in seven months of 2022, the progress of equitization and divestment was slow.

For objective reasons, enterprises that are equitized and divested have a large scale and own a lot of lands. The Covid-19 pandemic has impacted the financial and securities markets in the country and the region, affecting the determination of enterprise value, making land use plans for equitization, and implementation of the auction of state capital shares in accordance with the regulations.

The implementation of equitization and divestment depends on the market situation, choosing a reasonable time to sell shares to bring efficiency and ensure feasibility.

In addition, subjective reasons stem from the awareness and implementation of some representative agencies of owners and heads of enterprises which are still not high, not drastic in implementing equitization and divestment, leading to the low results of equitization and divestment for SOEs that do not need to hold capital.

The preparation for equitization and divestment is also not good. Many enterprises have not fully completed legal procedures to rearrange and handle houses and land before equitization or divestment and there are still many problems and financial problems that have not been completely resolved.

In order to overcome, innovate and speed up the equitization and divestment progress in the coming time, along with the completion of mechanisms and policies, the Ministry of Finance has developed a plan on restructuring enterprises in the period of 2021-2025 to ensure feasibility, suitability and ensure revenue from equitization and divestment.

Agencies representing owners of state capital in enterprises, corporations and SOEs carry out equitization and divestment of state capital in SOEs under its management in accordance with regulations, ensuring publicity, transparency, efficiency and the highest recovery of state capital in enterprises.

Along with that, urging businesses directly managing and using real estate to declare and report, make plans to rearrange housing and land in accordance with the provisions of Decree No. 167/2017/ND-CP, Decree No. 67/2021/ND-CP to submit to competent authorities for approval under their competence.

The Ministry of Finance also suggested that the People's Committees of the provinces and cities give their opinions on the plan to rearrange and handle houses and land of central enterprises, located in the area at the request of the Ministry of Finance, ministries and central agencies. This will ensure the approval progress of plans for rearrangement and handling of houses and land serving for the formulation of land use plans upon equitization.

At the same time, strictly handling cases of slow implementation or violating regulations on equitization and divestment of state capital in enterprises, clearly defining the responsibilities of the organizations and individuals involved, especially the leaders in the arrangement, equitization, divestment, restructuring of SOEs, performing related tasks and tasks; consider the performance of tasks and the results of the arrangement, equitization, divestment, and restructuring of SOEs as a criterion for evaluating related agencies, collective units and individuals.

By Hoài Anh/Thanh Thuy

Related News

Deputy Prime Minister, Minister of Finance: Budget management to be more decentralized

Deputy Prime Minister, Minister of Finance: Budget management to be more decentralized

VCN - Deputy Prime Minister, Minister of Finance Ho Duc Phoc indicated that the revision of the State Budget Law (SBL), as part of the "One Law Amending Seven Laws" scheme, focuses on removing short-term bottlenecks and obstacles. He also announced that future amendments will increase decentralization and delegation of authority in budget management.
Businesses can choose a suitable electronic invoice model generated from the cash register

Businesses can choose a suitable electronic invoice model generated from the cash register

VCN - The Ministry of Finance said that individual business households can choose a suitable model to apply electronic invoice solutions from cash registers, depending on the number of invoices used in the year, in the month and the current status of software solutions and technical infrastructure.
Rush to finalize draft decree on public asset restructuring

Rush to finalize draft decree on public asset restructuring

VCN - According to the Ministry of Finance, the draft Decree regulating the rearrangement and handling of public assets is being urgently completed by the Ministry of Finance to submit to the Government for promulgation.
Ministry of Finance proposes to choose the option of reducing land rent by 30% in 2024

Ministry of Finance proposes to choose the option of reducing land rent by 30% in 2024

VCN - The Ministry of Finance has just completed the draft Decree of the Government regulating the reduction of land rent in 2024. Accordingly, in the latest Draft, the Ministry of Finance directly proposed to choose the reduction level according to option 2 of 30%.

Latest News

Monetary policy forecast unlikely to loosen further

Monetary policy forecast unlikely to loosen further

It will be difficult for the State Bank of Vietnam (SBV) to further loosen monetary policy due to a rising USD/VNĐ exchange rate pressure, experts said.
World Bank outlines path for Vietnam to reach high income status

World Bank outlines path for Vietnam to reach high income status

The World Bank (WB) has released a report which explores how Vietnam can upgrade its participation in global value chains to become a high-income country by 2045.
Strictly control public debt and ensure national financial security  2025

Strictly control public debt and ensure national financial security 2025

VCN – In order to achieve goal of strictly managing public debt and maintaining security and safety of the national financial system in 2025, it is necessary to ensure the borrowings and repayments of public debts is within the approved estimate; closely monitor public debt indicators to ensure that they are within the ceiling and warning thresholds approved by the National Assembly.
Revising the title of a draft of 1 Law amending seven finance-related laws

Revising the title of a draft of 1 Law amending seven finance-related laws

VCN - On November 19, 2024, the Standing Committee of the National Assembly (SCNA) discussed amendments and refinements to the draft of a law revising seven existing finance-related laws. Concluding the session, Vice Chairman of the National Assembly Nguyen Duc Hai emphasized the need for the Government to direct the drafting body and relevant agencies to collaborate closely to finalize a persuasive and widely supported report, ensuring the quality of the draft law for the National Assembly's consideration and decision.

More News

Transparency evates the standing of listed companies

Transparency evates the standing of listed companies

VCN - According to the Hanoi Stock Exchange (HNX), the number of companies placed under warning, control, or restricted trading on the listed and registered markets has increased over the past two years compared to 2022.
State-owned securities company trails competitors

State-owned securities company trails competitors

Contrary to the outstanding performances in the banking sector, the securities subsidiaries of major banks have yet to fully leverage their potential, despite numerous inherent advantages.
Strengthening the financial “health” of state-owned enterprises

Strengthening the financial “health” of state-owned enterprises

VCN - The state economy plays a key role in the socio-economic development process, but it is necessary to strengthen the financial health and competitiveness of state-owned enterprises (SOEs).
U.S. Treasury continues to affirm Vietnam does not manipulate currency

U.S. Treasury continues to affirm Vietnam does not manipulate currency

VCN - In its latest report, the U.S. Department of the Treasury has positively assessed Vietnam's monetary policy, reaffirming that Vietnam does not engage in currency manipulation.
Exchange rate fluctuations bring huge profits to many banks

Exchange rate fluctuations bring huge profits to many banks

Net profits from the foreign exchange trading segment of many banks have gained positive results thanks to a strong USD/VNĐ exchange rate fluctuations this year.
A “picture” of bank profits in the first nine months of 2024

A “picture” of bank profits in the first nine months of 2024

VCN - Pre-tax profits for banks during the first nine months of 2024 remained positive, exceeding 200 trillion VND, solidifying the sector's position as a market leader.
Many challenges in restructuring public finance

Many challenges in restructuring public finance

VCN - Restructuring public finance is an important step to improve state financial management, ensure resources are allocated reasonably and effectively, contributing to the country's sustainable development. In addition to the achieved results, the process of accelerating public finance restructuring also faces many pressures.
Tax declaration and payment by e-commerce platforms reduces declaration points and compliance costs

Tax declaration and payment by e-commerce platforms reduces declaration points and compliance costs

VCN - E-commerce platforms that declare and pay taxes on behalf of traders not only help to reduce the number of tax declaration points but also reduce the cost of compliance with administrative procedures for the whole society because only one point as the e-commerce trading platform implements tax deduction, payment and declaration on behalf of tens, hundreds of thousands of individuals and business households on the platform.
Disbursement of public investment must be accelerated: Deputy PM

Disbursement of public investment must be accelerated: Deputy PM

Deputy Prime Minister Ho Duc Phoc has called on ministries, agencies, and localities to accelerate the disbursement of public investment from now until the year-end and further tighten investment management.
Read More

Your care

Latest Most read
Monetary policy forecast unlikely to loosen further

Monetary policy forecast unlikely to loosen further

It will be difficult for the State Bank of Vietnam (SBV) to further loosen monetary policy due to a rising USD/VNĐ exchange rate pressure, experts said.
World Bank outlines path for Vietnam to reach high income status

World Bank outlines path for Vietnam to reach high income status

The World Bank (WB) has released a report which explores how Vietnam can upgrade its participation in global value chains to become a high-income country by 2045.
Strictly control public debt and ensure national financial security  2025

Strictly control public debt and ensure national financial security 2025

VCN - According to the plan for borrowing and repaying public debt and foreign debt of the country in 2025, the total borrowing demand of the Government in the year is expected to be at VND 815,238 billion, an increase of 20.6% compared to the Government'
Revising the title of a draft of 1 Law amending seven finance-related laws

Revising the title of a draft of 1 Law amending seven finance-related laws

On November 19, 2024, the Standing Committee of the National Assembly (SCNA) discussed amendments and refinements to the draft of a law revising seven existing finance-related laws.
Transparency evates the standing of listed companies

Transparency evates the standing of listed companies

According to the Hanoi Stock Exchange (HNX), the number of companies placed under warning, control, or restricted trading on the listed and registered markets has increased over the past two years compared to 2022.
Mobile Version