Deputy PM reviews SOEs equitisation, restructuring

Deputy Prime Minister Vuong Dinh Hue chaired a meeting of the Steering Committee for Business Renovation and Development in Hanoi on July 8 to review equitisation, divestment and restructuring of State-owned enterprises (SOEs) and corporate development in the first half and tasks for the remaining months of this year.

deputy pm reviews soes equitisation, restructuring hinh 0
Deputy Prime Minister Vuong Dinh Hue at the event (Photo: VNA)

The committee reported that it collected over 5.5 trillion VND (240 million USD) in revenue from SOEs equitisation and divestment in January – June. Since 2016, as many as 162 SOEs have been equitised with a total value of over 205 trillion VND, or 108 percent recorded during 2011-2015. Revenue from initial public offerings topped 24.8 trillion VND. 

As of June, 796 SOEs were yet to register for listing on the stock market. 

Since early this year, there have been more than 66,900 newly-established companies with a total registered capital of over 860 trillion VND. Over 21,600 others have resumed operations while more than 7,800 shut down, and more than 21,800 temporarily waited for dissolution. 

As of June, there were 737,000 firms operating nationwide. 

However, the progress of SOEs equitisation and divestment remains slow due to the lack of drastic directions by ministries, agencies and localities, delay in calculation of corporate value and land use approval. 

Representatives from several groups and corporations said they meet difficulties in trademark pricing, and issues regarding intellectual property right, cultural and historical values when it comes to calculating starting price upon divestment. 

Hue, who is also head of the committee, requested ensuring transparency and safety for the issuance of corporate bonds. 

He asked the Finance Ministry and the State Bank to review the situation and submit a corporate bond issuance plan to the government for consideration, which must detail quota, criteria and credit rankings for the process. 

The Deputy PM urged ministries and agencies to review relevant legal documents to promptly clear obstacles. 

The Ministry of Planning and Investment must work with relevant ministries and agencies to hold a conference discussing the guiding role of major SOEs and groups in connectivity and renovation. 

The Ministry of Natural Resources and Environment was asked to review regulations on the approval of State land use plan by equitised SOEs, and issue a Circular guiding the implementation of Decree No.126/2017/ND-CP on conversion from SOEs and one-member limited liability companies with 100 percent of charter capital invested by SOEs into joint-stock companies. 

VNA

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