Terminate ineffective SOEs and ineffective investment projects

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	A new Decree on equitization of SOEs introduced in December 2016
	Equitisation of SOEs must be sped up: experts

According to Corporate Finance, thee quitizaion of SOEs in the 2011-2015 only reached the quantity required, but the quality was not fully met. Photo: H.V

As reported by the Ministry of Finance, in 2016, 56 enterprises had been approved for equitisation and equitization plans by the competent authorities had a total actual value of 34,017 billion VND, while the actual value of the State capital in these enterprises was only 24,390 billion VND.

According to Statistics, one quitization plans approved by the competent authorities, the charter capital of 56 enterprises billion shares was 24,379 billion VND, of which 11,937 billion VND was held by the State, 7,670 billion VND was sold to strategic investors, 388 billion VND to workers, 8 billion VND to unions, 4,374 billion VND was sold at public auction.

About the equitization of SOEs, Mr. Đặng Quyết Tiến- Deputy Director of Corporate Finance commented: the equitization has not been implemented uniformly in during 2011-2015 but only met requirements of quantity, but the quality was not high.

There have been some positive changes in 2016, and in 2017 the quality of SOE equitization will be more focused. In detail, the State capital of equitized enterprises will be minimized to mobilize capital from other shareholders; corporate governance must operate more efficiently, shares must been listed on the stock market openly and transparently.

In terms of divestment, in 2016, enterprises withdrew 3,646 billion VND with revenues of 6,840 billion vnd, of which divestment in 5 sensitive areas was 490 billion vnd with revenues of 450 billion VND. The revenues were lower than the value obtained on investment because Thanh Lễ Corporation degraded 100.6 billion VND in Chánh Mỹ Garden Villas, collected 18.3 billion VND and some other investments in the bank have been sold at 0 VND.

Divestment of other businesses was 1,578 billion VND with revenues of 2,273 billion VND.

State Capital Investment Corporation (SCIC) has sold capital in 67 businesses with a value of 1.557 billion vnd and revenues of 4,116 billion vnd. This figure does not include amounts of auctions for new shares of Vinamilk because of the last shares auction was on December 12 and the bid winners have not yet completed the transfer of funds.

Sharing solutions to accelerate SOE restructuring in 2016-2020, Mr. Đặng Quyêt Tiến said: In the near future, the Finance Ministry will coordinate with related units to complete the program and submit to the Prime Minister the criteria, the list of types of SOE and the SOE portfolio of reorganization for the period 2016-2020. After the Prime Minister approves, this category will focus on implementing the plans to restructure SOEs.

Resolutely handle the large SOEs VCN – State Owned Enterprises (SOEs) occupy most investment resources of the country, but the business and ...

In addition, making plans and continuing to divest in State enterprises in which the State does not hold controlling shares or hold shares, equity will be considered as a key task in the period 2016-2020.

SOE losses and investment projects of inefficient SOEs will be reviewed and handled in accordance with definite rules and market mechanisms; moreover, bankruptcy of SOEs will be considered and implemented in accordance with law.