Prime Minister criticizes localities that have delayed equitization

	Bottlenecks in SOE equitization need to be removed
	The idea of waiting, hesitating in equitization still exists
	Making effort to promote equitization and divestment at the end of the period

Mr. Dang Quyet Tien

72% of equitizationplans have not been implemented

The report from the Ministry of Finance said that according to the Officialdispatch No. 991/TTg-DMDN dated July 10, 2017 of the Prime Minister, 18 enterprises have been equitized in 2019.

By the end of the second quarter of 2019, six enterprises were approved to beequitized by competent agencies, however, only one enterprise is subject to equitization according to Official dispatch 991.

By the end of the second quarter of 2019, 35 of 127 enterpriseswere subject to the list of equitization according to Official Dispatch No. 991. The equitization progress of enterprises has not reached the plan. As a result, the number of enterprises subject to equitization is 92 of 127 enterprises, accounting for 72% of the plan.

Regarding divestment, according to the Prime Minister’s Decision No.1232/QD-TTg dated August 17, 2017, 62 enterprises shall be divested in 2019.

In the first half of 2019, nine enterprises weredivested with avalue of VND759 billion, and collected VND1,657 billion, of which the Ministry of Construction divested from Viglacera Corporation with a book value of VND690 billion and collected VND1,587 billion.

From 2017 to the end of the second quarter of 2019, the State capital divestment is implemented at 88 units with a value of VND4,549 billion and collected VND8,765 billion.

In addition to enterprises listed in Decision 1232, other enterprises in the whole country divested VND3,785 billion and collected VND110,392 billion (including the divestment of VND3,436 billion and collected VND109,965 billion in Sabeco).

Corporations, groups and SOEs under the restructuring scheme have also divested with a total value of VND1,333 billion and collected VND2,174 billion, of which Viettel divested VND1,290 billion at Vietnam Construction and Import-Export Joint Stock Corporation and collected VND2,002 billion; SCIC divested at five enterprises with a book value of VND36 billion and collected VND166 billion.

In the first six months of 2019, the capital divestment was VND2,092 billion, collecting VND3,831 billion.

Regarding the reasons for the slow equitization and divestment, Mr. Dang Quyet Tien said that some ministries, sectors, localities economic groups and state-owned corporations have not yet drastically deployed the plan on equitization, divestment and restructuring of SOEs under the direction of the Prime Minister and complied with the reporting regime.

Besides, the role, awareness and responsibility of the heads of the enterprises and units are insignificant, the reform of enterprise operation has not been transparent and not complied with provisions of the law, ensuring market principles and prevent group interests in the State capital equitization and divestment.

Enterprises delaying listing will be publicized soon

According to Mr. Tien, there are both objective reasons. The equitization of SOEs takes a long time to handle obstacles on finance, land and labor before the equitization, leading to the slow process. Especially, the creation of thelegal profile by the local People's Committee is slow and takes more time than the regulation, so enterprises must adjust the equitization progress.

The high proportion of State capital in the equitization plan of SOEs has reduced the attraction of investors,affecting the success of equitization.

The delay in the settlement to transfer into joint-stock companies of equitized enterprises has affected the transfer and collection to theBusiness Development Support Fund.

Many enterprises are slow to register transactions and list on the stock market, affecting the transparency of the market and the slow administrative reform of enterprises after the equitization according to practices and standards of enterprises in the stock market and the limitation in the supervision of the whole society to the operation of these enterprises.

Responding to the press on the handling for enterprises which deliberately delay and do not deploy the plan, Mr. Tien said that the Prime Minister has sent an official dispatch to criticize and remind localities that have slow implementation progress.

“Leaders of local People's Committees such as Hanoi and Ho Chi Minh City said they are concerned but there are many reasons of units. Facing the criticism of the Prime Minister, localities have shown their determination to implement drastically in the future, they may not reach the plan but must implement in some units,”Mr. Tien said.

For units that are slow in listing on the stock market after equitization, the Ministry of Finance will also announce to attach the responsibility of the head. This is assigned to the State Securities Commission for implementation.

It is expected that in the second half of the year, the Ministry of Finance will also hold conferences for enterprises that are slow in listing in the North and South in order to catch problems and handle them in a timely fashion.

“In these conferences, units will have to report specifically their causes and problems. If they do not report their reasons, they will be announced. After that, if the units still do not implement the plan, the State Securities Commission's inspector will determine responsibilities,” Mr. Tien said.