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Equitization must ensure the sale of state capital

16:17 | 12/04/2017

VCN - Although 96.5% of State- owned enterprises (SOEs) were equitized, the total equitized capital was only 8%. Therefore, localities, ministries, and sectors must ensure that state capital must be sold, better divested and improve the administration of enterprises.

equitization must ensure the sale of state capital Prime Minister directs the enhancement of SOEs restructure and renewal
equitization must ensure the sale of state capital Resolutely handle the large SOEs
equitization must ensure the sale of state capital Equitization creating strong "push" for businesses and the economy.
equitization must ensure the sale of state capital

Localities, ministries, and sectors must actively handle shortcomings and not to accrue works to the Government

This was directed by the is the guidance of the Politburo Member, Deputy Prime Minister Vuong Dinh Hue, Head of the Steering Committee for Enterprise Renovation and Development at the conference on the restructure and equitization of SOEs on the afternoon of 10/4.

At the conference, Deputy Director of the Government Office, Deputy Head of the Standing Steering Committee Le Manh Ha said that according to Decision No. 58/2016 / QD-TTg dated December 28, 2016, of the Prime Minister, the country will equitize 137 SOEs in the period 2017-2020.

Up to the first quarter of 2017, the country has equitized 8 SOEs and 1 business unit and announced the value of enterprises, but has not approved the equitization plan of 41 enterprises and has been determining the value of 108 enterprises, equitized 1 enterprise under the Vietnam National Coffee Corporation and approved the value of 1 enterprise for equitization.

Regarding the state capital divestment, till the end of March 25, 2017, the country sold the state capital with written value of 71.8 billion vnd at 10 enterprises and collected 72.8 billion vnd, in which there were 6 enterprises divesting their capital below the price.

The Deputy Prime Minister Vuong Dinh Hue said that up to now, there were 96.5% of SOEs which have been equitized but the total equitized capital was only 8%, thus there were 92% of the state capital which has not yet been equitized. This means that the fields which the state does not need to hold have not yet attracted the private funds.

The Deputy Prime Minister Vuong Dinh Hue agreed with the opinions of ministries, localities, and SOEs that this issue is still slow and shows signs of the slowdown in the first quarter of 2017 on the formulation of the institutional framework, amendments, and promulgation of relevant Government decrees and administrative procedures.

"For example, the plan to restructure the SOEs submitted to the ministries, committees, sectors and localities must be promptly received and handled. If this is delayed one day, causing the delay to the implementation progress of month, quarter and even a year of enterprises. Groups and corporations that have been not drastically equitized and divested capital and still psychologically waiting for the regulations of the State " said by Vuong Dinh Hue, Head of the Steering Committee.

In the coming period, the country will focus on equitization of large SOEs such as Vietnam Electricity Vietnam is carrying out procedures for equitization of generator Corporations, or will equitize Rubber Group and Southern Food Corporation (Vinafood 2).

“These are large enterprises that State Audit must audit the evaluation result against the loss of assets and capital”, The Deputy Prime Minister said.

From 2017 to 2020, the Deputy Prime Minister noted that the target of arranging and improving the efficiency of SOEs’ performance is to create a stronger and more substantial progress, in which equitization is only a solution which narrows the scope of SOEs’ operations in the fields of security and defense, and fields that private enterprises do not want to invest and cannot afford to invest. SOEs which are remained must renovate their administration for effective operation.

The Deputy Prime Minister suggested the Steering Committee for Enterprise Renovation and Development to draft documents of leaders of the Government, urge the ministries, localities, groups and corporations to continue to grasp the Resolutions of the Party, the Government and the National Assembly in this field to improve the efficiency of SOEs’ performance, in which the main task is enterprise administration.

The Ministries and sectors must complete legal documents, and enhance the inspection, supervision and prevent the loss of state capital, especially negative signs in capital divestments and equitization. Overcoming the legal inadequacies of equitization to ensure that this process takes place quickly, promptly and in compliance with the law. Resolutely handling the weak enterprises in the spirit of Resolution No. 05 / NQ-TW that is the State does not spend more money to restructure the enterprises. Localities, ministries, and sectors should take the initiative in dealing with weak enterprises and not accrue works to the Government.

Also, the Government leaders emphasized that: “identifying the responsibilities in equitization and strictly handling heads of enterprises or representatives of State capital in enterprises, who intended to violate or perform badly and ineffectively this work.

For SOEs that need to arrange and equitize in the current period have a very large market value, the Deputy Prime Minister said: "There is no need to equitize so much but must ensure that the state capital must be better sold and divested and improve the management capacity of enterprises.

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By Huong Diu/ Huyen Trang