Ministry of Finance to discipline representatives of equitized State-owned enterprisesthat have not listed

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A total of 92 enterprises must be equitizedin 2020. Photo: Internet

In the reply to the Vietnam Financial Consulting Association on the proposal to create more stocks for the stock market through promoting equitization and divestment of state-owned enterprises, the Ministry of Finance said according to Official Letter991/TTg-DMDN, Decision 26/2019/QD-TTg and Decision1232/QD-TTg,128 enterprises will be equitized and 348 enterprises will be divested between2016-2020. However, the equitization and divestmentin recent years is still slow and has failed to reach the plan.

From 2016 to May 2020, 174 enterprises had their equitization plans approved by competent authorities, of which, 36 of 128 enterprises were subject to be equitized as prescribed in Official Letter991/TTg-DMDN, Decision 26/2019/QD-TTg and 99 of 348 enterprises were subject to be divestedas prescribed inDecision1232/QD-TTg, reaching 28% of the plan.

The Ministry of Finance said that in the remaining months of 2020, 92 enterprises must be equitized and 249 enterprises must be divested as planned.

To accelerate the equitization and divestment, the Government, the Prime Minister and the Steering Committee for business innovation and development have promptly directed relevant authorities toaccelerate progress and improve the efficiency of equitization and divestment. Two Prime Minister’s conferences on renovating and improving the performance of State-owned enterprises were held, focusing on State-owned groups and corporations.

In addition, the Government issued Resolution No. 01/NQ-CP on major tasks and solutions for implementing socio-economic development plans and and Statebudget estimates for 2019 and Resolution No.73/NQ-CP promulgating the Government’s action plan to implement Resolution No. 60/2018/QH14on continuing to improve and promote the implementation of policies and laws on management and use of the State’s capital and assets at enterprises and equitization of state-owned enterprises.

However, due to the unpredictable development of the Covid-19 pandemic, business production and other activities have been delayed, so the equitization and divestment of enterprises have faced difficulties. Therefore, it is not feasible to deploy the plan from now to the end of 2020.

The Ministry of Finance said that in addition to promoting equitization and divestment, the requirement of equitized State-owned enterprises to list or register for trading is also one of the solutions to create more supply for the stock market.

The Ministry of Finance reported to the Prime Minister on this issue, which proposed solutions to promote listing and registering trade of equitized State-owned enterprises. Specifically, it required ministries, sectors to strictly follow thePrime Minister’s instructions, review and classify the equitized State-owned enterprises that have not yet listed and registered for trading, andwill discipline therepresentative for State capital ownership at enterprises.

For handling violations of regulations on listing and registering trade of equitized state-owned enterprises, the Ministry of Finance has sent notification to 251 equitized state-owned enterprises for their violations. Currently, the Ministry of Finance issued decisions to punish 42 enterprises and reminded 23 enterprises.