Ho Chi Minh City will accelerate State-owned enterprise (SOEs)divestments in non-core businesses in 2015, said Vice Chairman of themunicipal People’s Committee Le Manh Ha on March 23.
At a working session with the city’s National Assembly deputies, Haacknowledged that the city has focused solely on SOE equitisation whilelacking sufficient attention towards divestment.
Asof February 28 of this year, 10 of 14 State-owned corporations andparent-subsidiary companies in HCM City divested more than 577 billionVND (27.47 million USD) from 43 businesses, representing only 16 percentof the targets for 2013-2015.
The city is scheduled to divest more than 3.6 trillion VND (1.71 billion USD) from non-core businesses in 2015.
Huynh Trung Lam, Deputy Head of the city’s business managementrenovation board, attributed the sluggish divestment to economichardships limiting the number of partners interested in buying shares.
The large volume of shares offered by other firms in acondensed period of time also affected SOE divestment plans. It tooktime to follow the divestment process set by the Prime Minister’sDecision No.51 dated September 15, 2014, he added.
The municipal People’s Committee has adjusted its plan to focus on steering SOE divestment this year, Lam noted.
Divesting non-core assets is among efforts to restructure SOEs as partof the economic restructuring scheme stated in the National Assembly’sResolution No.10/2011/QH13 on the socio-economic development plan for2011-2015. Public investment and the banking system are also undergoingrestructuring.-VNA
At a working session with the city’s National Assembly deputies, Haacknowledged that the city has focused solely on SOE equitisation whilelacking sufficient attention towards divestment.
Asof February 28 of this year, 10 of 14 State-owned corporations andparent-subsidiary companies in HCM City divested more than 577 billionVND (27.47 million USD) from 43 businesses, representing only 16 percentof the targets for 2013-2015.
The city is scheduled to divest more than 3.6 trillion VND (1.71 billion USD) from non-core businesses in 2015.
Huynh Trung Lam, Deputy Head of the city’s business managementrenovation board, attributed the sluggish divestment to economichardships limiting the number of partners interested in buying shares.
The large volume of shares offered by other firms in acondensed period of time also affected SOE divestment plans. It tooktime to follow the divestment process set by the Prime Minister’sDecision No.51 dated September 15, 2014, he added.
The municipal People’s Committee has adjusted its plan to focus on steering SOE divestment this year, Lam noted.
Divesting non-core assets is among efforts to restructure SOEs as partof the economic restructuring scheme stated in the National Assembly’sResolution No.10/2011/QH13 on the socio-economic development plan for2011-2015. Public investment and the banking system are also undergoingrestructuring.-VNA
