The number of State-owned enterprises (SOEs) set to be equitised duringthe 2014-15 period will increase from 432 to 532 companies.
Theincrease was the result of the latest review of the government'srestructuring plan for the SOEs. This was announced at a meetingconducted by the Steering Committee for Innovation and Development ofState-owned Enterprises last weekend to evaluate the restructuringprogress of the SOEs in 2014.
A total of 143 SOEs had beenequitised as of December 25, 2014, doubling the 2013 figure. Meanwhile,167 enterprises had been re-arranged, indicating an increase of 160percent compared with that of last year.
According to the 2014-15SOEs restructuring plan, 479 businesses will be arranged, 432 will beequitised, 22 will be dissolved, and 25 will be merged.
The StateSecurities Commission reported that 76 SOEs in 2014 sold stakes on thestock exchanges. From these enterprises, 64 collected a total amount of5.115 trillion VND (239 million USD), or 66 percent of the plan. Thesurplus revenue earned from these share sales reached 1.324 trillion VND(nearly 62 million USD).
Government Office Vice Chairman PhamViet Muon appraised the restructuring efforts made by the ministries andenterprises despite the difficulties faced in the domestic and theworld economic environments.
However, Muon disclosed that someministries, including the Ministries of Defence, Health, and Industryand Trade, were still slow in carrying out the restructuring plan. TheMinistry of Natural Resources and Environment and the Vietnam CementIndustry Corporation, as well as 33 cities and provinces, also exhibitedslow implementation.
In addition, a number of policies have notbeen issued and amended timely. The delay contributed to the slowrestructuring progress.
Muon encouraged all ministries, sectorsand localities to exert greater efforts to achieve the goal ofequitising 532 state enterprises by the end of this year. In addition,the Steering Committee should continue to improve the legal framework ofthe arrangement and innovation of the state enterprises.
TheSteering Committee also set the timetable to equitise the enterpriseswhich showed slow progress. This move was made to ensure that allenterprises will have equitisation plans approved no later than thefourth quarter of this year.
Subsequently, the businesseseligible to make initial public offerings (IPO) must proceed accordingto the regulations set. Businesses that are ineligible for IPOs mustshift into a joint stock company with multiple shareholders includingthe State, the State Capital Investment Corporation, labour union, oremployees to diversify the owners and make corporate governance moretransparent. Other shareholders should be considered as well.
TheState corporations and localities will continue to review and updatethe list of companies targeted to be equitised. The list will besubmitted to the Prime Minister for approval in the first quarter of2015.
With regard to the divestment of the state's capital as ofDecember 25, 2014, the state's enterprises have sold shares worth 6.076trillion VND (284 million USD) in 233 companies, collecting more than 8trillion VND (374 million USD). This amount is 1.3 times higher than thebook value.
Sectors that divestments brought profits from included finance and banking, real estate and insurance.-VNA
Theincrease was the result of the latest review of the government'srestructuring plan for the SOEs. This was announced at a meetingconducted by the Steering Committee for Innovation and Development ofState-owned Enterprises last weekend to evaluate the restructuringprogress of the SOEs in 2014.
A total of 143 SOEs had beenequitised as of December 25, 2014, doubling the 2013 figure. Meanwhile,167 enterprises had been re-arranged, indicating an increase of 160percent compared with that of last year.
According to the 2014-15SOEs restructuring plan, 479 businesses will be arranged, 432 will beequitised, 22 will be dissolved, and 25 will be merged.
The StateSecurities Commission reported that 76 SOEs in 2014 sold stakes on thestock exchanges. From these enterprises, 64 collected a total amount of5.115 trillion VND (239 million USD), or 66 percent of the plan. Thesurplus revenue earned from these share sales reached 1.324 trillion VND(nearly 62 million USD).
Government Office Vice Chairman PhamViet Muon appraised the restructuring efforts made by the ministries andenterprises despite the difficulties faced in the domestic and theworld economic environments.
However, Muon disclosed that someministries, including the Ministries of Defence, Health, and Industryand Trade, were still slow in carrying out the restructuring plan. TheMinistry of Natural Resources and Environment and the Vietnam CementIndustry Corporation, as well as 33 cities and provinces, also exhibitedslow implementation.
In addition, a number of policies have notbeen issued and amended timely. The delay contributed to the slowrestructuring progress.
Muon encouraged all ministries, sectorsand localities to exert greater efforts to achieve the goal ofequitising 532 state enterprises by the end of this year. In addition,the Steering Committee should continue to improve the legal framework ofthe arrangement and innovation of the state enterprises.
TheSteering Committee also set the timetable to equitise the enterpriseswhich showed slow progress. This move was made to ensure that allenterprises will have equitisation plans approved no later than thefourth quarter of this year.
Subsequently, the businesseseligible to make initial public offerings (IPO) must proceed accordingto the regulations set. Businesses that are ineligible for IPOs mustshift into a joint stock company with multiple shareholders includingthe State, the State Capital Investment Corporation, labour union, oremployees to diversify the owners and make corporate governance moretransparent. Other shareholders should be considered as well.
TheState corporations and localities will continue to review and updatethe list of companies targeted to be equitised. The list will besubmitted to the Prime Minister for approval in the first quarter of2015.
With regard to the divestment of the state's capital as ofDecember 25, 2014, the state's enterprises have sold shares worth 6.076trillion VND (284 million USD) in 233 companies, collecting more than 8trillion VND (374 million USD). This amount is 1.3 times higher than thebook value.
Sectors that divestments brought profits from included finance and banking, real estate and insurance.-VNA
