Addressing a meeting of the Steering Committee on Enterprise Renovation and Development in Hanoi on July 25, Deputy PM Hue, who is also head of the committee, said the progress of equitisation and divestment remains slow due to prolonged price evaluation and stricter regulations.
He asked the Government Office and the committee to complete reports on the effort to submit to the PM, permanent members of the Secretariat, and the National Assembly Standing Committee for consideration between now and the year’s end.
Ministries, agencies, corporations, and localities were required to closely abide by the conclusions made by the PM and head of the committee at Notice No.72; the refined legal framework as guided at the Decree No.126/2017/ND-CP on turning SOEs into joint stock companies; and Decree No.32/2018/ND-CP on amendments to Decree No.91.2015/ND-CP on pouring State capital into enterprises.
The Government Office was assigned to work with the steering committee to review adjustments in equitisation and divestment plans as concluded by the PM, ministries, agencies, and localities. Difficulties and recommendations during the process must be reported to the government, ministries, and agencies in preparation for a national conference between the PM and businesses in the near future.
It is impossible to sacrifice quality in order to progress and conduct equitisation at any costs, he said, adding that what matters is the efficiency, corporate governance, and benefits gained after equitisation.
In the first half of this year, 19 SOEs had their equitisation plans approved with a total chartered capital of more than VND22 trillion (US$960 million). Over VND22.45 trillion was collected in 16 initial public offerings and stakes sales for strategic shareholders, reported the committee.
According to approved equitisation plans, the 16 firms had a chartered capital upwards of VND136.2 trillion, including the PetroVietnam Power Corporation, Binh Son Refining and Petrochemical Company Ltd, Vietnam Rubber Group, and Vietnam Southern Food Corporation.
Revenue from divestment by 42 SOEs hit VND5.598 trillion during the period, raising the total income from equitisation and divestment to roughly VND198,000 trillion since 2016. Up to VND115 trillion was sent to the State budget, equal to nearly half of five-year public finance plan.
The PM has approved plans to reshuffle agro-forestry companies by ministries, agencies, and localities. As many as 160 out of 249 units have completed reshuffle procedures.
After one year spent fixing the shortcomings of 12 delayed and inefficient projects under the watch of the Ministry of Industry and Trade, two of them have bounced back to earn profits, four others have cut losses and become stable. Amongst the three projects which were forced to shut down, one has been able to resume its operations.
Such projects have contributed to generating thousands of jobs and socio-political stability, laying the foundation to thoroughly dealing with the remaining projects, towards addressing all 12 projects by 2020.
In accordance with the Prime Minister’s Decision No.1232/QD-TTg, up to 62 SOEs will be handed over to the State Capital Investment Corporation (SCIC) between 2017 and 2020. Last year, 24 of them were transferred to the SCIC with a total capital of VND821.14 billion while three others came under its helm in the first half of the year.
From January to June, there were 64,531 newly-established firms nationwide, up 5.3% annually. Their total registered capital amounted to more than VND648.9 billion, up 8.9% year on year.