State-owned enterprises likely to recover will be restructured

	718 State enterprises remain
	Target to only have 333 State-owned enterprises
	State-owned enterprises which do not publish information in accordance with regulations will be treated harshly

Illustrative photo.

According to a report of the Corporate Finance Department under the Ministry of Finance on the implementation of equitization and restructuring of State-owned enterprises, in January 2017, the Ministry of Finance continued to amend and supplement the Scheme on State-owned enterprises restructuring, focusing on the economic groups and State Corporations in the period 2016 - 2020 to report to the Prime Minister.

In particular, based on the direction of the Deputy Prime Minister, Mr. Vuong Dinh Hue and comments of the Ministries, the amendment of the Scheme on State-owned enterprises restructuring will target two objectives as follows: resolving weakness in the restructuring in the period 2011-2015 and improving operational efficiency and competitiveness of State-owned enterprises. Accordingly, only State-owned enterprises which are likely to recover will be restructured.

Besides, the Ministries, Departments, localities, corporations and groups are conducting a review of equitization of State-owned enterprises in the period 2016 - 2020 in accordance with the Prime Minister’s Decision No. 58/2016/QD-TTg issued at the end of 2016.

Specifically, the Government only holds 100% of the charter capital in 103 enterprises in the fields as follows: construction of geodesy maps for national defense and security; manufacturing and trading of industrial explosives; transmission and management of the national electricity distribution; multi-purpose hydropower and nuclear power with important targets for socio-economic development, the national defense and security; system management for the national railway by the State; urban railway invested by the State; air traffic services, aviation information services including searching and rescuing; maritime security (excluding dredging and public navigable channels); (7) Post-office and utility; lottery business and publishing (excluding printing); production of money, coins, gold bars and gold souvenirs; and credit policies for socio-economic development, promoting the security of the banking system and credit institutions.

State-owned enterprises in other sectors have been equitized as follows: there have been 4 enterprises with 65% of te State capital; 27 enterprises with 50%-65% of State capital and 106 enterprises with less than 50% of State capital.

Reportedly, in 2016, there were 56 State-owned enterprises approved for equitization plans by the competent authorities, including 6 State corporations. Besides, there were 3 State corporations approved for evaluation by competent authorities for consideration of equitization (including the Southern Food Corporation, the Vietnam Urban and Industrial Zone Development Investment Corporation - IDICO, and Housing and Urban Development Corporation - HUD).

In fact, the total actual value of 56 enterprises approved for the equitization plan was 34,017 billion vnd. In particular, the value of State capital in these enterprises was 24,390 billion vnd.

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According to the equitization plan approved by the competent authorities, the charter capital of the 56 enterprises was 24,379 billion vnd, with State capital of 11,937 billion vnd, strategic investors’ capital of 7,670 billion vnd, employees’ capital of 388 billion vnd, unions’ capital of 8 billion vnd and shares sold at public auction reached 4,374 billion vnd.