Loss-making SoEs could go bankrupt

Minister of Industry and Trade Tran Tuan Anh has promulgated Directive No. 05/CT-BCT on rearrangement and renewal of State-owned enterprises (SOEs) in the 2017-20 period.

Accordingly, the ministry asked its SOEs, corporations, one member limited companies and representative units of State capital to prepare plans and roadmaps for firms’ rearrangement and divestment during the period, which must be submitted to the ministry for approval in May.

In particular, four State groups -- Vietnam National Oil and Gas Group (PetroVietnam), National Coal and Mineral Industry Group (Vinacomin), Vietnam Chemical Group (Vinachem) and Electricity of Vietnam (EVN) -- are required to submit their restructure plans.

In addition, the groups were asked to implement privatisation at their member units following approved process and plans as well as current laws and regulations.

The directive also asked the groups to enhance management, supervision and checks to prevent huge loss of State capital and assets in their rearrangement, privatisation and divestment.

“The State-owned enterprises should clarify responsibilities of relevant organisations and individuals in the process of privatisation and divestment. 

The representatives of State capital at the companies must strictly implement the rearrangement,” it said.

The ministry will also review criteria to classify State-owned firms under Decision 58/2016/QĐ-TTg, promulgated by the Prime Minister to build specific plans and a roadmap for the sale of State capital in the 2017-20 period.

In addition, the ministry has been advised to transfer State capital at its businesses to the State Capital Investment Corporation and implement asset evaluation.