The Prime Minister has requested authorised agencies to employfar-reaching measures to ensure that the equitisation of 289 State-ownedenterprises (SOEs) is completed within 2015.
Hedemanded that the equitisation of 126 SOEs, whose value is currentlybeing assessed, be completed in the third quarter of the year, while the52 firms already valued must be made available to investors and partlysold in Q2. The partial privatisation of the 82 others must be completedin Q4.
The Cabinet leader said the process mustensure the mutual benefits of the State, company employees, andshareholders. He demanded the divestment of State capital from non-corebusinesses be hastened and asked the Ministry of Finance to guide thesettlement of business value assessment bottlenecks.
The equitisation, which sees private investors take large stakes informer SOEs while the state retains some shareholding, is part of theeconomic restructuring scheme from 2011-15 outlined by a NationalAssembly resolution. It aims to make the companies more efficient andprofitable. Public investment and the country’s banking system are alsoundergoing significant restructuring.
According tothe PM, ministers, State agency leaders, Chairpersons of the provincialand municipal People’s Committees and economic group chiefs must beheld accountable for the outcomes of the restructuring, equitisation anddivestment of SOEs under their management. He said they must strictlydeal with executives who fail to work effectively and address anyobstacles by liaising with the Ministry of Finance, the Ministry ofPlanning and Investment, the Steering Committee for Business Renovationand Development and other authorised agencies.
According to the Steering Committee, 143 SOEs were equitised in 2014,well below the set target of 200. As many as 432 SOEs were subjected torestructuring in 2014 and 2015.
Vietnam hasdivested approximately 5 trillion VND (over 238 million USD) of Statecapital from SOEs, gaining nearly 7 trillion VND (333.33 million USD) intotal revenue, with 45 percent coming from the real estate sector.-VNA
Hedemanded that the equitisation of 126 SOEs, whose value is currentlybeing assessed, be completed in the third quarter of the year, while the52 firms already valued must be made available to investors and partlysold in Q2. The partial privatisation of the 82 others must be completedin Q4.
The Cabinet leader said the process mustensure the mutual benefits of the State, company employees, andshareholders. He demanded the divestment of State capital from non-corebusinesses be hastened and asked the Ministry of Finance to guide thesettlement of business value assessment bottlenecks.
The equitisation, which sees private investors take large stakes informer SOEs while the state retains some shareholding, is part of theeconomic restructuring scheme from 2011-15 outlined by a NationalAssembly resolution. It aims to make the companies more efficient andprofitable. Public investment and the country’s banking system are alsoundergoing significant restructuring.
According tothe PM, ministers, State agency leaders, Chairpersons of the provincialand municipal People’s Committees and economic group chiefs must beheld accountable for the outcomes of the restructuring, equitisation anddivestment of SOEs under their management. He said they must strictlydeal with executives who fail to work effectively and address anyobstacles by liaising with the Ministry of Finance, the Ministry ofPlanning and Investment, the Steering Committee for Business Renovationand Development and other authorised agencies.
According to the Steering Committee, 143 SOEs were equitised in 2014,well below the set target of 200. As many as 432 SOEs were subjected torestructuring in 2014 and 2015.
Vietnam hasdivested approximately 5 trillion VND (over 238 million USD) of Statecapital from SOEs, gaining nearly 7 trillion VND (333.33 million USD) intotal revenue, with 45 percent coming from the real estate sector.-VNA
