Illustrative image (Source: ndh.vn) Hanoi (VNA) - In thenext round of equitisation, State capital must be sold faster, at higher value,and the enterprises’ corporate governance must further improve, Deputy PrimeMinister Vuong Dinh Hue has said.
Hue was speaking at a meeting on equitisation and therestructuring of State-owned enterprises (SOEs) in Hanoi early this week.
Though 96.5 percent of the SOEs have been equitised so far, only 8percent of State capital has been sold.
Therefore, up to 92 percent of State capital remains unequitised,meaning that the country need to do more to attract private investment capitalin industries and sectors that the Government does not need to holdstakes in, Hue said.
“The responsibility of individuals and organisations involved inthe equitisation processes must be determined. Leaders and representatives ofstate capital in SOEs who deliberately violate regulations, perform poorly anddelay equitisation must be punished strictly,” he said.
Equitisation must be done both urgently and strictly becausethough not many SOEs need to be equitised, the State capital waiting for equitisationremains very high, Hue said.
In the first quarter of 2017, nine SOEs with a combined book valueof 71.8 billion VND (3.14 million USD) were equitised, helping the State gain 72.8billion VND.
Le Manh Ha, Deputy Chairman of the Government Office andDeputy Head of the Steering Board for SOE Renovation and Development, saidthat as per the Prime Minister’s decision, in the 2016-20 period, the countryhas to equitise 137 SOEs belonging mostly to four ministries, located in 32cities and provinces, and from four economic sectors.
As per the approved plan, the SOEs have to submit theirrestructuring and equitising plans every year to the Prime Minister forapproval in the first quarter itself. However, only two ministries, two citiesand provinces, and two economic sectors have met the deadline.
Ha said the delay has made it difficult for the Government toassess and boost the equitisation process.
Representatives from ministries and sectors attributed the delayto the fact that the SOEs that have to be equitised are large-sized withcapital of trillions of VND, such as the Vietnam National CoffeeCorporation, Vietnam Posts and Telecommunications Group, PetroVietnam,Electricity of Vietnam, Vietnam Rubber Group, Vinafood 1 and 2.
Le Minh Chuan, Chairman of the Vietnam Natural Coal and MineralIndustries Group (TKV), said that finding strategic investors for SOEequitisation was very tough as the amount of State capital that needed to beequitised was huge.
TKV has so far equitised 61 of its 80 subsidiaries, and divestedfrom non-core business, gaining more than 2 trillion VND.
Many issues are still to be resolved, according to Chuan, so theparent company will complete its pricing appraisal only in 2019.
Another reason for the delay is that concerned ministries andagencies are waiting for the Government to complete the revised Decree59/2015/ND-CP on converting SOEs into joint stock companies to ease equitisedfirms into land value appraisals.
Ha Cong Tuan, Deputy Minister of Agriculture and Rural Development,said Vinafood 1 and the Vietnam National Coffee Corporation wouldcomplete their corporate value appraisals in the third and fourth quarter ofthis year, respectively. However, Tuan admitted that the companies are waitingfor the decree.-VNA
Hue was speaking at a meeting on equitisation and therestructuring of State-owned enterprises (SOEs) in Hanoi early this week.
Though 96.5 percent of the SOEs have been equitised so far, only 8percent of State capital has been sold.
Therefore, up to 92 percent of State capital remains unequitised,meaning that the country need to do more to attract private investment capitalin industries and sectors that the Government does not need to holdstakes in, Hue said.
“The responsibility of individuals and organisations involved inthe equitisation processes must be determined. Leaders and representatives ofstate capital in SOEs who deliberately violate regulations, perform poorly anddelay equitisation must be punished strictly,” he said.
Equitisation must be done both urgently and strictly becausethough not many SOEs need to be equitised, the State capital waiting for equitisationremains very high, Hue said.
In the first quarter of 2017, nine SOEs with a combined book valueof 71.8 billion VND (3.14 million USD) were equitised, helping the State gain 72.8billion VND.
Le Manh Ha, Deputy Chairman of the Government Office andDeputy Head of the Steering Board for SOE Renovation and Development, saidthat as per the Prime Minister’s decision, in the 2016-20 period, the countryhas to equitise 137 SOEs belonging mostly to four ministries, located in 32cities and provinces, and from four economic sectors.
As per the approved plan, the SOEs have to submit theirrestructuring and equitising plans every year to the Prime Minister forapproval in the first quarter itself. However, only two ministries, two citiesand provinces, and two economic sectors have met the deadline.
Ha said the delay has made it difficult for the Government toassess and boost the equitisation process.
Representatives from ministries and sectors attributed the delayto the fact that the SOEs that have to be equitised are large-sized withcapital of trillions of VND, such as the Vietnam National CoffeeCorporation, Vietnam Posts and Telecommunications Group, PetroVietnam,Electricity of Vietnam, Vietnam Rubber Group, Vinafood 1 and 2.
Le Minh Chuan, Chairman of the Vietnam Natural Coal and MineralIndustries Group (TKV), said that finding strategic investors for SOEequitisation was very tough as the amount of State capital that needed to beequitised was huge.
TKV has so far equitised 61 of its 80 subsidiaries, and divestedfrom non-core business, gaining more than 2 trillion VND.
Many issues are still to be resolved, according to Chuan, so theparent company will complete its pricing appraisal only in 2019.
Another reason for the delay is that concerned ministries andagencies are waiting for the Government to complete the revised Decree59/2015/ND-CP on converting SOEs into joint stock companies to ease equitisedfirms into land value appraisals.
Ha Cong Tuan, Deputy Minister of Agriculture and Rural Development,said Vinafood 1 and the Vietnam National Coffee Corporation wouldcomplete their corporate value appraisals in the third and fourth quarter ofthis year, respectively. However, Tuan admitted that the companies are waitingfor the decree.-VNA
VNA
