Gov't urges firms to transfer assets
Deputy Prime Minister Vu Van Ninh has directed ministries, ministerial-level agencies, government agencies and People's Committees of provinces to speed up the transfer of State capital ownership in State-owned enterprises to the State Capital Investment Corporation (SCIC).
Pending the transfer process, these enterprises may not change their operating scales and charter capital, as well as cannot sell stakes at their subsidiary and associated companies.
For unprofitable businesses or the ones who have lost State capital, the existing representative of State capital ownership must tackle all shortcomings by law before transferring their ownership rights to SCIC, as well as specify liability and penalty of the collectives or individuals who have caused the damages to State capital, if any.
Starting operation in August 2006, SCIC's primary objectives are to represent the State capital interests in enterprises and invest in key sectors and essential industries with a view to enhancing the efficiency of State capital utilisation and strengthening the dominant role of the State while respecting market rules.
By December 30, the State investment arm has been representing the State shareholding rights in 230 enterprises with the total book value of about VND17 trillion (US$759 million), excluding investments under the Prime Minister's direct decision.
SCIC is holding stakes of between 30% and over 50% in many large-scale companies including dairy producer Vinamilk, FPT Telecom, Bao Minh Insurance Corporation, Thieu Nien Tien Phong Plastics, Binh Minh Plastics, Hau Giang Pharmaceuticals and insurer Bao Viet Holdings.
In early October, the Government directed SCIC to sell the entire State capital in 10 large State-owned enterprises which could garner the State budget income of almost US$4 billion. The target companies include Vinamilk, software producer FPT Corp, FPT Telecom, Bao Minh Insurance, Tien Phong Plastics and Binh Minh Plastics.
In the recent decision, Deputy Prime Minister also asked ministries of Industry and Trade, Construction to urge economic groups and State corporations under their management to draw a road map for State capital divestment during the 2016-20 period and submit to the Ministry of Finance before January 31 next year.
In November, Minister of Finance Dinh Tien Dung said the total value of State capital in enterprises stood between VND1.2 quadrillion (US$54 billion) to VND1.3 quadrillion (US$58 billion).