Hanoi (VNA) – Despite numerous efforts of theGovernment in speeding up the equitisation of State-owned enterprises, someministries, sectors, localities and economic groups have showed ineffectiveperformance in the work, thus slowing down the progress of thescheme.

According to the Ministry of Finance’s Department ofCorporate Finance, in the first eight months of 2020, the department receivedthe reports approving equitisation plans of six enterprises.

The Committee for Management of State Capital at Enterprises(CMSC) has completed the announcement of corporate value of one corporation –the mother company of Power GenerationCorporation 2 (EVNGENCO 2).

From 2016 to August 2020, 177enterprises had had their equitisation plans approved with total value of over443.5 trillion VND (19 billion USD), including 207.1 trillion VND of State capital.

In the rest of the year, thenumber of enterprises subjected to equitisation in line with the plan is 91,including 13 in Hanoi and 38 in Ho Chi Minh City. The CMSC is responsible forthe equitisation of six enterprises, the Ministry of Industry and Trade fourand the Ministry of Construction two.

Economist held that in orderto complete the equitisation of 91 firms between now and the year-end, eachmonth, the country must equitise 22 enterprises, which is infeasible.Meanwhile, equitisation is the only way to enhance the efficiency ofState-owned enterprises and optimise resources for the national economy.

Economist Nguyen Tri Hieu saidenterprises have given various reasons for the slow implementation of their equitisationplans. Meanwhile, Dang Quyet Tien, head of the Department of Corporate Financeblamed impacts of COVID-19 pandemic for equitisation delays.

Besides, those targetedthistime are major economic groups and corporations with complicated financialsituation, making it difficult to evaluate the corporate value, he said, addingthat newly-issued regulations related to equitisation and capital divestmentwith tighter procedures also prolong the time for the work.

Particularly, a recent reportof the Department of Corporate Finance showed that some ministries, sectors,localities, Stated-owned economic groups, corporations and companies have yetto work hard in this regard.

Tien said that they have balkedat processing the equitisation without daring to take the responsibility, whiletaking difficulties as reasons to delay the equitisation.

Meanwhile, economist Le QuocPhuong held that there are still “loopholes” in related regulations, leading toa slow progress of the scheme.

In that context, the Ministryof Finance has asked SOEs subjected toequitisation to speed up the reviewing oftheir land to facilitate the evaluation of corporate value, thus completing thefinancial settlement and announcement of corporate value within 2020.

Agenciesrepresenting State capital ownership at enterprises should complete divestmentwithin 2020, the ministry requested, asking leaders of ministries,ministry-level agencies, Government agencies and centrally-run localities to drasticallydirect the SOE equitisation, divestment and restructuring in line with the plan,and be responsible for the work’s results.

Phuong underlined the urgentneed to fix the “loopholes” in regulations, making the equitisation processtighter and under stronger control and supervision./.