Hesitation slows down SOE equitisation

Despite numerous efforts of the Government in speeding up the equitisation of State-owned enterprises, some ministries, sectors, localities and economic groups have showed ineffective performance in the work, thus slowing down the progress of the scheme.

According to the Ministry of Finance’s Department of Corporate Finance, in the first eight months of 2020, the department received the reports approving equitisation plans of six enterprises.

The Committee for Management of State Capital at Enterprises (CMSC) has completed the announcement of corporate value of one corporation – the mother company of Power Generation Corporation 2 (EVNGENCO 2).

From 2016 to August 2020, 177 enterprises had had their equitisation plans approved with total value of over VND443.5 trillion (US$19 billion), including VND207.1 trillion of State capital.

In the rest of the year, the number of enterprises subjected to equitisation in line with the plan is 91, including 13 in Hanoi and 38 in Ho Chi Minh City. The CMSC is responsible for the equitisation of six enterprises, the Ministry of Industry and Trade four and the Ministry of Construction two.

Economist held that in order to complete the equitisation of 91 firms between now and the year-end, each month, the country must equitise 22 enterprises, which is infeasible. Meanwhile, equitisation is the only way to enhance the efficiency of State-owned enterprises and optimise resources for the national economy.

Economist Nguyen Tri Hieu said enterprises have given various reasons for the slow implementation of their equitisation plans. Meanwhile, Dang Quyet Tien, head of the Department of Corporate Finance blamed impacts of COVID-19 pandemic for equitisation delays.

Besides, those targetedthis time are major economic groups and corporations with complicated financial situation, making it difficult to evaluate the corporate value, he said, adding that newly-issued regulations related to equitisation and capital pestment with tighter procedures also prolong the time for the work.

Particularly, a recent report of the Department of Corporate Finance showed that some ministries, sectors, localities, Stated-owned economic groups, corporations and companies have yet to work hard in this regard.

Tien said that they have balked at processing the equitisation without daring to take the responsibility, while taking difficulties as reasons to delay the equitisation.

Meanwhile, economist Le Quoc Phuong held that there are still “loopholes” in related regulations, leading to a slow progress of the scheme.

In that context, the Ministry of Finance has asked SOEs subjected toequitisation to speed up the reviewing of their land to facilitate the evaluation of corporate value, thus completing the financial settlement and announcement of corporate value within 2020.

Agencies representing State capital ownership at enterprises should complete pestment within 2020, the ministry requested, asking leaders of ministries, ministry-level agencies, Government agencies and centrally-run localities to drastically direct the SOE equitisation, pestment and restructuring in line with the plan, and be responsible for the work’s results.

Phuong underlined the urgent need to fix the “loopholes” in regulations, making the equitisation process tighter and under stronger control and supervision.

Source: VNA
vov.vn

Related News

Proposal to evaluate the performance of state-owned enterprises according to financial indicators

Proposal to evaluate the performance of state-owned enterprises according to financial indicators

VCN - As the world and the country are changing rapidly with many challenges and opportunities, state-owned enterprises need an effective mechanism and policy to "untie" and change perceptions and views on equitisation and divestment of state capital.
Equitisation and divestment move slowly

Equitisation and divestment move slowly

Although relevant policies have been put in place, the process of equitisation and divestment of State capital is still moving at a very slow pace, according to Dang Quyet Tien, director of the Corporate Finance Department under the Ministry of Finance.
Absorbing foreign capital to State-owned enterprise equitisation

Absorbing foreign capital to State-owned enterprise equitisation

VCN - State-owned enterprise equitisation has received many concerns from investors, especially foreign investors. Although it has achieved some results, the attraction of foreign investors to the equitisation of enterprises is currently facing some difficulties.
Review problems to amend regulation on assessment of SOE managers

Review problems to amend regulation on assessment of SOE managers

VCN – Responding to the proposal of Ha Tinh province’s representative on the issuance of a circular to revise and add the content "Assessment of SOE managers" in Circular No. 200/2015/TT-BTC, the Ministry of Finance said that it is reviewing to amend and supplement the circular.

Latest News

Central bank urges card issuers to review procedures

Central bank urges card issuers to review procedures

The State Bank of Vietnam (SBV) has issued a directive, demanding commercial banks to review their procedures in issuing and managing bank cards.
Warning about impersonating tax authorities to commit fraud during  tax finalization month

Warning about impersonating tax authorities to commit fraud during tax finalization month

VCN - The Tax industry has continuously provided information and issued warnings about impersonating tax officials and tax authorities to commit fraud against taxpayers, but there are still people who fall into the trap of these fraudsters, especially during the peak month of tax settlement.
“3 priorities, 3 breakthroughs” in task deployment of State Treasury

“3 priorities, 3 breakthroughs” in task deployment of State Treasury

VCN - To complete the task from now until the end of 2024 and successfully implement the State Treasury Development Strategy as planned, Deputy Minister of Finance Bui Van Khang stated "3 priorities, 3 breakthroughs" " and 7 notes in task performance.
Effectively apply M&A to go long distance

Effectively apply M&A to go long distance

VCN - With advantages such as being cheaper than domestic capital, and accompanied by many factors such as technology, skills, management, market... foreign capital is a popular trend among businesses. Domestic enterprises seek through M&A activities to ensure sustainable development for the future.

More News

Hanoi State Treasury proactively digitizes and transforms operating methods

Hanoi State Treasury proactively digitizes and transforms operating methods

VCN - Hanoi State Treasury always proactively transforms and reforms its operating methods with the motto of “taking customers as the center” and taking the satisfaction of organizations and individuals as a measured level of task completion by civil servants.
The Ministry of Finance continues to strongly improve the business environment, reducing the rate of businesses temporarily suspending operations

The Ministry of Finance continues to strongly improve the business environment, reducing the rate of businesses temporarily suspending operations

VCN - The Ministry of Finance aims to continue to strongly improve the business environment, create a healthy competitive environment, rapidly increase the number of newly established businesses, and reduce the rate of businesses temporarily suspending operations; reduce input costs and legal compliance costs in investment and business activities, reduce policy risks, strengthen trust, create a fulcrum for recovery and improve business resilience.
Vietnam tackles obstacles to stock market upgrade

Vietnam tackles obstacles to stock market upgrade

Vietnam's ambition to elevate its stock market from "frontier" to "emerging" status by 2025 faces two key hurdles, including pre-trade margin requirements for foreign investors and foreign ownership ratios in certain sectors, said Deputy Director of the Securities Market Development Department under the State Securities Commission (SSC) Pham Thi Thuy Linh.
Looking forward clear instructions in tax finalization in 2023

Looking forward clear instructions in tax finalization in 2023

VCN - Mr. Hoang Quang Phong (photo), Vice Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) discussed supporting taxpayers in tax finalization in 2023.
Proactive in dealing with exchange rate pressure

Proactive in dealing with exchange rate pressure

VCN - Recently, the State of Bank (SBV) withdrew VND 30,000 billion through the T-bills channel, contributing to reducing exchange rate pressure. This is just one of the moves of the monetary policy management agency to stabilize the foreign exchange market, contributing to supporting the macro economy as well as import-export business activities of enterprises.
Tax sector accompanies and supports tax finalization

Tax sector accompanies and supports tax finalization

VCN - In the first months of 2024, the Tax sector has deployed peak months to support tax finalization in many different forms, thereby solving many problems in settlement of corporate income tax and personal income tax for taxpayers.
Minister of Finance: Fairness and transparency for the insurance market

Minister of Finance: Fairness and transparency for the insurance market

VCN - According to Minister of Finance Ho Duc Phoc, the Ministry has strengthened inspections to correct violations in the insurance sector, demonstrating fairness and transparency in the market.
Vietnamese securities companies race to boost capital amid high market demand

Vietnamese securities companies race to boost capital amid high market demand

These companies understand the importance of boosting their capital to remain competitive and avoid falling behind their peers.
Central bank required to take urgent measures to stabilise gold market

Central bank required to take urgent measures to stabilise gold market

The Government has directed the State Bank of Vietnam (SBV) to urgently inspect and supervise to stabilise the gold market.
Read More

Your care

Latest Most read
Central bank urges card issuers to review procedures

Central bank urges card issuers to review procedures

The State Bank of Vietnam (SBV) has issued a directive, demanding commercial banks to review their procedures in issuing and managing bank cards.
Warning about impersonating tax authorities to commit fraud during  tax finalization month

Warning about impersonating tax authorities to commit fraud during tax finalization month

VCN - The Tax industry has continuously provided information and issued warnings about impersonating tax officials and tax authorities to commit fraud against taxpayers, but there are still people who fall into the trap of these fraudsters, especially dur
“3 priorities, 3 breakthroughs” in task deployment of State Treasury

“3 priorities, 3 breakthroughs” in task deployment of State Treasury

To successfully implement the State Treasury Development Strategy as planned, Deputy Minister of Finance Bui Van Khang stated "3 priorities, 3 breakthroughs" " and 7 notes in task performance.
Effectively apply M&A to go long distance

Effectively apply M&A to go long distance

VCN - Sharing at the conference "Consumer goods and distribution industry: M&A trends and investment strategies to raise capital for Vietnamese enterprises", organized by the Business Association of High Quality Vietnamese Goods and the Leading Business C
Hanoi State Treasury proactively digitizes and transforms operating methods

Hanoi State Treasury proactively digitizes and transforms operating methods

Hanoi State Treasury always proactively transforms and reforms its operating methods with the motto of “taking customers as the center” and taking the satisfaction of organizations and individuals as a measured level of task completion by civil servants.
Mobile Version