Divestment in State-owned enterprises doing business efficiently: Rushing divestment may disrupt the market

20:57 | 17/09/2016 Finance Follow english.haiquanonline.com.vn on

VCN- Speaking to the press on the afternoon of September 14, 2016, Mr. Dang Quyet Tien, the Deputy Director of the Corporate Finance Department said that the shares of Viet Nam Dairy Products Joint Stock Company (Vinamilk) would be sold within the year. Also, 9 other enterprises will implement divestment in early 2017 at the latest.

	State-owned enterprises restructuring: Waiting for a new thrust
	Additional 5 enterprises approved for Equitization
	World Bank applauds super commitee idea

divestment in state owned enterprises doing business efficiently rushing divestment may disrupt the market

Illustrative photo.

As the Customs Newspaper reported, the Government requested the State Capital Investment Corporation (SCIC) to develop a roadmap for divestment of 10 large State-owned enterprises.

The 10 enterprises are: Bao Minh Corporation; Vietnam National Reinsurance Corporation; Ha Giang Engineering and Mineral Resource Joint Stock Company; Tien Phong Plastics Joint Stock Company; Vietnam Infrastructure and Real Estate Company; Binh Minh Plastics Company; Vietnam Dairy Products Joint Stock Company; FPT Joint Stock Company; and Sa Giang Import-Export Joint Stock Company and FPT Telecom.

After receiving the tasks assigned by the Government, SCIC has developed a plan and roadmap for divestment of Vinamilk in 2016 first. The 9 remaining enterprises shall be divested in this year and early next year.

The divestment of these State-owned enterprises should comply with an appropriate roadmap to maximize the benefits to the State, develop the market and to not cause large fluctuations in other smaller scale businesses.

Particularly with Vinamilk, Mr. Dang Quyet Tien considered this enterprise as "a beautiful flower" with State capital of 100,000 billion vnd. Therefore, when performing divestment, the Government should be cautious. Also, the market will have a negative impact if authorities try to divestment quickly at a cheap price. So, there needs to be a roadmap and discussion with investors on this matter.

Financial council to put focus on restructuring

The National Financial and Monetary Policy Advisory Council will concentrate on dealing with the reorganisation of credit ...

Regarding the role of the Ministry of Finance in the divestment of Saigon Beer Alcohol Beverage Joint Stock Company (Sabeco) and Hanoi Beer Alcohol Beverage Joint Stock Company (Habeco), Mr Tien said that these 2 enterprises were still managed by the Ministry of Industry and Trade, not yet handed over to SCIC. Thus, the Ministry of Finance shall only monitor and give opinions if the Ministry of Industry and Trade requires.

By Hong Van/ Hoang Anh

Tags:

Vietnam State-owned divestment market enterprise corporate finance Department dairy Government

Related News

“Opportune environment” for growth of insurance enterprises

10:15 | 03/05/2024 Finance

VCN - According to the Ministry of Finance, in the first quarter of 2024, total assets of insurance enterprises are estimated to reach VND 934.8 trillion, an increase of 11%; Investment back into the economy is estimated at VND 7,776.5 trillion, an increase of 8.7%. These are positive numbers for insurance enterprises to expect positive business results for the whole year 2024.

How does the Land Development Fund work effectively?

09:19 | 26/04/2024 Finance

VCN - Speaking at the Conference to collect opinions on the draft Government Decree regulating the Land Development Fund held by the Ministry of Finance on April 22, Deputy Minister of Finance Bui Van Khang emphasized the necessity of the development of the Government Decree regulating the Land Development Fund.

The Government plans to borrow maximum of VND676,057 billion and repay debt of VND453,990 billion in 2024

10:39 | 04/04/2024 Finance

VCN – The Loan and Public debt payment plan in 2024 and the 3-year public debt management program for 2024 - 2026 have been approved by Deputy Prime Minister Le Minh Khai in Decision No. 260/QD-TTg.

Personal Income Tax Law to be amended in 2025

10:42 | 04/04/2024 Finance

VCN - On March 29, answering questions from the press at the Ministry of Finance's regular press conference for the first quarter of 2024, the leader of the Department of Management and Supervision of Tax, Charges and Fees Policy (Ministry of Finance) said, continue to focus on drastically implementing solutions to support businesses that the National Assembly and the National Assembly Standing Committee have approved; At the same time, closely monitor the situation to research and advise competent authorities on appropriate solutions.

Latest News

Banks strengthen information security systems

14:55 | 03/05/2024 Finance

Banks often face attacks from high-tech criminals to steal customer data to conduct property appropriation fraud. Therefore, banks must strengthen defence measures to ensure safety and security in their systems.

Closely monitoring fluctuations to calculate the appropriate time to adjust prices

15:35 | 02/05/2024 Finance

VCN - According to a report from the Ministry of Finance, in the second quarter and the remaining months of 2024, price management needs to ensure inflation control and continue to support the removal of difficulties for business.

Strictly monitor market fluctuations to appropriately adjust prices

14:46 | 27/04/2024 Finance

VCN – In the second quarter and the remaining months of 2024, the price management and administrations need to effectively control inflation and remove difficulties for production and businesses, the Ministry of Finance reports.

Closely monitoring market fluctuations to consider appropriate time to adjust prices

09:30 | 26/04/2024 Finance

VCN - According to a report from the Ministry of Finance, in the second quarter and the remaining months of 2024, price management and administration need to ensure good control of inflation and continue to remove difficulties for production and business.

More News

Vietnam seeks to remove obstacles in upgrade of securities market

13:50 | 25/04/2024 Finance

The State Securities Commission of Vietnam (SSC) recently held an online working session with the World Bank (WB) and the Asia Securities Industry and Financial Markets Association (ASIFMA) to discuss ways to remove obstacles related to criteria for upgrading the Vietnamese securities market.

Price stability from supply increase and transparency in trading in gold market

09:42 | 25/04/2024 Finance

VCN - To stabilize the gold market, economic expert Prof.Dr. Tran Tho Dat, a member of the Prime Minister's Economic Advisory Group, said that it is necessary to implement solutions to make all transactions transparent in the gold market, implement electronic invoices as well as pay taxes in gold investment activities.

SBV takes more actions to stabilise foreign exchange rates

13:43 | 24/04/2024 Finance

The State Bank of Vietnam (SBV) on April 23 took some moves like issuing treasury bills (T-bills), further employing T-bills as an open market operation (OMO), and stipulating liquidity and interest rates in the inter-bank market in the face of surging USD/VND exchange rates.

Proposal to exclude criminal liability for tax officials when businesses provide false information to refund VAT

10:35 | 24/04/2024 Finance

VCN - The revised Draft Law on Value Added Tax (VAT), besides inheriting many provisions from the current Law, also revises and supplements several contents to suit the actual situation, including some notable contents in VAT refund.

Corporate bond maturity in 2024 remains high: MoF

13:51 | 23/04/2024 Finance

The volume of corporate bonds maturing in 2024, though lower than that in 2023, is till at a high level, mostly in industries with payment risks such as real estate and renewable energy, according to a report by the Ministry of Finance (MoF).

Support clearance procedures for imported gold for bidding

09:33 | 23/04/2024 Finance

VCN - The State Bank (SBV) has sent a document to competent ministries and branches requesting coordination in implementing the Prime Minister's direction in gold market management.

The exchange rate will gradually cool down from the end of the second quarter of 2024, while interest rates will remain low

09:32 | 23/04/2024 Finance

VCN - According to forecasts, Vietnam's financial sector in 2024 will be more positive, with the exchange rate gradually cooling down from the end of the second quarter of 2024, while interest rates will remain low to promote growth.

Majority of credit institutions forecast profit growth in 2024

15:16 | 22/04/2024 Finance

A total of 86.2% of credit institutions expect their profit this year to grow compared to 2023, according to the latest survey of the State Bank of Vietnam (SBV).