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In the first half of the year, equitization and divestment progress is still slow. Photo: Internet.

VND2.180 billion collected from divestment

According to the Department of Corporate Finance, in the first six months of 2022, enterprises implemented equitization and divestment in line with the approved plan. In addition, An Giang Ferry Company Joint Stock Company - which was officially been transformed into a joint stock company in 2021 under the list of equitization in the period 2017-2020, was approved by the Prime Minister with worth VND309 billion. Of this, VND278 billion is the actual value of State capital.

Regarding divestment, in the first half of 2022, corporations, corporation groups and SOEs divested capital from enterprises with a value of VND382 billion, earning VND2.180 billion.

The reasons for delaying the equitization process include both objective and subjective, the department said.

However, the object reasons show that equitized and divested enterprises have a large scale and own a lot of land. The Covid-19 epidemic has affected the domestic and regional financial and securities markets, affecting the assessment of enterprise value, making land use plans for equitization, implementing auction of state capital. The equitization and divestment depends on the market situation, selection of appropriate time for selling shares to bring efficiency and ensure feasibility.

However, subjective reasons show that some owner's representative agencies and heads of enterprises have not yet drastically performed equitization, divestment, which had led to a low rate of equitization and divestment of state-owned enterprises that do not need to hold capital.

Units have not yet effectively prepared equitization and divestment. Many enterprises have not fully completed legal procedures to rearrange and handle houses and land before equitization or divestment. In addition, some have not yet completely resolved financial problems.

The coordination between the owner's representative agencies and the People's Committees of the provinces, cities, ministries and agencies in building and approving plans to rearrange and handle houses under regulations on rearrangement and handling of public assets has not implemented effectively. The approval progress sees the slow implementation.

Strictly handling delay or violations

To overcome shortcomings and expedite the equitization and divestment in the near future, the Ministry of Finance said legal documents will continue to be reviewed and perfected to remove difficulties.

In the short term, the ministry will research and revise regulations on enterprise valuation, and assessment of the value of land use rights in line with the Resolution of the 5th Conference of the Central Committee of the Party, term XIII, which separates the value of land use rights from the enterprise value.

In the long term, the Department of Corporate Finance will study and submit to the National Assembly for promulgation a law amending and supplementing the Land Law, the Law on Management and use of state capital invested in production and business in enterprises.

The implementation and development of plan for rearranging enterprises for 2021-2025 ensure feasibility, suitability and maintain revenue from equitization and divestment.

In addition, the owner's representative agencies of the State capital in enterprises and corporation groups, corporations, and SOEs conducting equitization and divestment of state capital in enterprises must comply with regulations, ensuring transparency, efficiency and highest revenue of state capital in enterprises. The department also requests enterprises that directly manage and use real estate to declare and make plans to rearrange houses and land.

The Department asks People's Committees of provinces and cities to give feedback on rearranging and handling of houses and land of central enterprises located in the area at the request of the Ministry of Finance, ministries, central government agencies to ensure progress; build a database to monitor and manage the progress of declaration, and make and approve plans for rearrangement and handling of houses and land and handle houses and land approved by competent authorities.

The department requests to strictly handle enterprises violating regulations on equitization and divestment of State capital in enterprises. It also requires the responsibilities of the organizations and individuals involved be defined, especially the leaders in the arrangement, equitization, divestment, restructuring of SOEs, performing tasks; and consider performance results as a criterion for evaluating related agencies, units, and individuals.

On the other hand, the department also requests to strengthen the transparency of information on the financial situation, production and business activities of SOEs to create confidence and attract the attention of investors before implementing equitization and divestment, and strengthen inspection and supervision of implementation, and remove difficulties for enterprises.