Continual reviews to impute responsibilities to leaders of SOEs causing State capital losses

	718 State enterprises remain
	Many provinces hit the target of domestic tax revenue
	The process of SOEs’ equitization is slow and not substantive
	A new Decree on equitization of SOEs introduced in December 2016

Many leaders of SOEs causing State capital losses have been imputed. Photo: internet.

Mr. Đặng Quyết Tiến– Deputy Director Corporate Finance, the Ministry of Finance said: The divestment in 5 sensitive sectors (real estate, securities, financial-banking, insurance and investment funds) for the period 2011- 2015 reached 11,036 billion VND, earning 10,742 billion VND

Revenues were in reality lower in comparison with figures on the books due to 800 billion VND invested by Petro Vietnam at Ocean Bank (Oceanbank) and 1.3 billion VND by the General Southern Food Company (Vinafood 2) at Construction Bank (VNCB) which was "lost" when the State Bank acquired two banks for 0 VND.

In 2016, also in 5 sensitive areas mentioned above, divestment reached 490 billion VND with revenue of 450 billion VND. The revenues were lower than the value obtained on investment because Thanh Lễ Corporation degraded 100.6 billion VND in Chánh Mỹ Garden Villas, collected 18.3 billion VND and some other investments in the bank have been sold at 0 VND.

In responses to questions related to responsibilities of the leaders of SOEs with State capital losses when investing in five sensitive areas, Mr Tien confirmed the leaders of these enterprises are to blame and these people have taken responsibility.

For example, leaders at Ocean Bank and the Vietnam Oil and Gas Group were prosecuted. At Vinafood 2, business leaders are also in the process of investigation by relevant authorities.

He added: "Enterprises are inevitably to get losses besides interests so the key is when they put the eggs in more baskets, please make sure the total number of eggs are unchanged."

In fact, the Ministry of Finance itself controlled the investment in other industries by regulations restricting the issue. Since 2009, investment issues were no longer outsiders. The enterprise intended to invest were all "popped red flags”.

Representatives of the Ministry of Finance also shared, in addition to the more than 11 trillion VND from successful divestment for the past 6 years, the State capital in 5 sensitive sectors has still been backlogged quite a lot. "The objective reasons are besides the easy withdrawal of capital then, the remains are the backlogged capital which were either difficult to sell or may have been lost. The key problem is to analyze in detail who is to blame for that "- said Mr Tien.

Resolutely handle the large SOEs VCN – State Owned Enterprises (SOEs) occupy most investment resources of the country, but the business and ...

Those who have a provision to offset losses and preserve capital, the Finance Ministry is proposing to the Government to allow them to continue to use that amount. In contrast, enterprises without provision or offset, the leaders will have to take responsibility, review and compensate for damages. Currently, the corporations and groups are continuing to check.