Equitisation of State-owned enterprises remains sluggish

Deputy Head of the Corporate Finance Department Dang Quyet Tien at the press conference. The progress of equitisation of SOEs remains slow in the first six months of the year. (Photo: VNA)

Hanoi (VNA) – The progress of equitisation of State-owned enterprises
(SOEs) in the first six months of this year was slower than the same time last
year with only 19 SOEs receiving approval for their equitisation plan by
mid-June.

At a press conference on the issue held in Hanoi on June 29, Deputy Head of the
Corporate Finance Department under the Ministry of Finance Dang Quyet Tien said
the Vietnam Southern Food Corporation Limited (Vinafood 2) and the Vietnam
Rubber Group are among those which need to speed up equitisation.

The
official attributed the delay to the hesitation and lack of drastic measures on
the side of the firms’ management as well as the market’s low absorption
capacity.

Divestment activity was also ponderous. Report from the Ministry of Finance
showed that state-owned groups and corporations divested a total 3.4 trillion
VND (149.5 million USD) from non-core business areas and recovered 14.8
trillion VND (651 million USD). However, over 11 trillion VND (483.8 million USD)
of which was collected from selling shares of Vinamilk.

Regarding the draft amendments to Decree No.91/2015/ND-CP on the investment of State
capital in enterprises and the management and use of capital and assets in
enterprise, the Finance Ministry said one of the changes will deal with principles
for the transfer of State capital and SOEs’ capital invested in other businesses.

New
regulations will be added on the determination of the initial prices when
transferring State capital and SOEs’ capital invested in other businesses
related to land use right.-VNA



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