Government to fully own 34 less SOEs by 2020

The plan, which aims help restructure State-owned companies and corporations in the period 2016-20, excludes a number of companies, including the State Capital Investment Corporation (SCIC), Debt and Asset Trading Corporation, Vietnam Asset Management Corporation (VAMC) and SOEs in the agriculture, forestry, defence and security sectors.

Those SOEs are already included in the Decision 58/2016, issued by the Prime Minister in late December 2016, classifying State-invested businesses and SOEs to be restructured in 2016-20.

Under the plan, the Government must develop its roadmap to sell its stakes in joint-stock companies and over-two-member limited liability companies to meet the requirements of the Decision 58/2016.

The plan also aims to improve the quality of financial management, corporate governance and human resources management. In addition, it mandates diversifying the portfolio of products and business activities and strategies to raise the quality of business operation.

The Government will also solve weaknesses and issues in the business operation of SOEs and State-invested companies; resolve problems in the inefficient businesses and projects that have suffered losses and generated low profits; and address the individuals and organisations that are accountable for problems in those business and projects.

The plan is expected to re-direct and re-structure SOEs to focus on their core sectors and businesses and  provide more products and services for the development of society and national defence and security.

In addition, the plan will make the operation of SOEs transparent and compliant to the market rules and regulations, and avoid loss of State capital and “group interest” in SOE equitisation.

The plan will also improve the quality of corporate governance for SOEs by separating State ownership from State management in those companies.