Construction ministry asked to sketch divestment roadmap

The head of the Steering Committee for Enterprise Reform and Development gave such a request at a meeting this Monday on the plan for restructuring of State-owned enterprises (SOEs) and those with a stake held by the State with the construction ministry as the representative, says the Government said on its news website.

In 2016-2020, comprehensive restructuring shall continue at 16 enterprises, with a focus on wrapping up equitization and further divestment according to an appropriate roadmap, said Minister of Construction Pham Hong Ha.

Among those, 12 enterprises have been equitized by the ministry. The remaining four, Song Da, IDICO, HUD and VICEM, have recently been added under Decision 58 of the Prime Minister on the criteria for classification of SOEs and State-invested enterprises and the list of SOEs subject to restructuring in 2016-2020.

He admitted the results of restructuring those SOEs under his ministry in 2011-2015 were below expectations, but profligacy and corruption did not take place in the process.

On the tasks for 2016-2020, the Minister of Construction said the 16 enterprises under his ministry possessed a huge fortune, large lots of land and tens of thousands of workers. Thus, the ministry is determined to seriously carry out equitization in accordance with the Prime Minister’s Decision 58.

Specifically, the ministry proposed keeping State ownership at LICOGI unchanged and transferring it to State Capital Investment Corporation (SCIC) in the first quarter of this year.

With the 10 corporations and joint stock companies that need time to finish equitization and State capital settlement, State ownership will be cut to 46% or the State will give up their stake there and transfer it to SCIC (or a specialized agency) in 2018-2019.

With LILAMA, VICEM, Song Da, VIGLACERA and HUD, as they are holding huge assets or have been involved in the construction of projects of national importance, the State stake will be brought down to 51% between now and 2020. From 2021 on, the rate will be further slashed, and the right to represent State ownership will change hands.

The Ministry of Construction will also direct the corporations to withdraw State capital from subsidiaries and affiliates in 170 categories in the next four years.

Deputy Prime Minister Vuong Dinh Hue asked the ministry to complete the roadmap for divestment and transfer of the right to represent State ownership on time and in line with the Government’s policy, in order to maximize benefits for the State.