Equitisation must be flexible and close to market value

Nguyen Hong Long, Deputy Director of the Steering Committee for Enterprise Reform and Development

How do you evaluate the impact of the context on the goal of equitisation that we have set?

- The fact that equitisation and divestment progress comes from objective and subjective reasons. Regarding the objective factors, first of all, the Covid-19 pandemic was taking place globally, besides that, the competition for trade between major countries has resulted in a serious impact on the stock market, thereby directly affecting equitisation and divestment.

However, with the target set out under Resolution No. 26/2016/H14 of the National Assembly, the revenue collected from equitisation to paid into the state budget to serve medium and long-term investment was VND250,000 billion. In the 2016-2020 period, by August this year, we have reached the target of VND211,500 billion, which is 85% of the set target. I think under current conditions, the results were quite satisfactory.

Subjectively, we still have many difficulties. VNPT, Mobifone, KTV, Agribank were the units with complicated financial situations and huge amount of land, some units have more than 1,000 land plots. Meanwhile, we still have many difficulties in approving land use plans. Second, the valuation of enterprises and the determination of land use rights are themselves quite complicated, leading to slow equitization. Third, the authorities themselves, groups and corporations were not drastic in the equitization of SOEs, sometimes there are thoughts of fear. There are even cases where difficulties in mechanisms and policies have been used to slow the equitization of SOEs.

The equitisation of agroforestry enterprises has faced many problems, so is there a way to solve the problems in the equitisation of these units?

- The biggest obstacle in the equitisation of agroforestry was the issue of land. This is a problem that exists in the development process of agroforestry. If in 1995, the Government issued Decree 01/1995/ND-CP promulgating the regulation on the allotment of land by state-owned business for agricultural production, forestry and aquaculture, including land allocation for five sectors, but 10 years later, in 2005, the Government promulgated Decree 135/2005/ND-CP on the contractual assignment of agricultural land, production forest land and land with water surface for aquaculture in State-run agricultural or forestry farms of which have limited the allocation of land to three components and the duration of land allocation calculated by following the tree life cycle. Thus, there is a difference between the two decrees.

This “legacy” could not be resolved until now. Up to now, the situation was very complicated, it was clear that the authorities and owners' representatives have to sit together to find a solution and must re-determine the final plan of the land use and the method of contracting for employees, avoid the case of leaving the entire work to owners because equitisation would be very complicated when equitising. A written promise must be made so the tasks of owners and the persons who receive allotments will be clear and transparent in order to solve the problem.

In your opinion, which new point will have the most positive impact in promoting the equitisation work, making it more effective and solving the most problems?

- First of all, in order to equitise and divest capital, there must be mechanisms and policies. Currently, mechanisms and policies on equitization and divestment are still being revised such as Decree 126/2017/ND-CP, Decree 32/2018/ND-CP and Decree 167/2017/ND- CP regulating on the re-arrangement and handling of public assets.

Besides that, a new plan will be issued to amend Decision 58/2016/QD-TTg on the classification criteria of SOEs, and the list of SOE to be reorganized in the 2016-2020 period and a number of other documents. I think that with the Government's direction, the equitisation and divestment will achieve positive results. However, it is important to pay attention to the ideological work for the representatives. Accordingly, it is necessary to be more drastic and responsible for the equitisation, especially the role of the Party committees at all levels. The Party committees and trade unions have to step in, all levels must implement work towards the same goal of doing well in equitisation and divestment.

This year, the equitization process has been affected by the Covid-19 pandemic, will the equitisation situation be more positive by 2021, sir?

- I think that, in order to improve the equitisation and divestment, first of all internally, we must have more effort. The equitisation, divestment, and re-arrangement of enterprises must be completed closely to market value and must be flexible.

Secondly, we still have to rely on the international market, because now we are connected to the international market through many trade agreements, so we could not do it alone.

By 2021, when the vaccine against Covid-19 is produced, along with the work of many countries in pandemic control, I believe the situation would be more positive and the picture of equitisation, divestment in general and business development in particular in 2021 will be more positive, this is also the expectation of many people.

Thank you so much!