The Prime Minister has requested authorised agencies to employ far-reaching measures to ensure that the equitisation of 289 State-owned enterprises (SOEs) is completed within 2015.
He demanded that the equitisation of 126 SOEs, whose value is currently being assessed, be completed in the third quarter of the year, while the 52 firms already valued must be made available to investors and partly sold in Q2. The partial privatisation of the 82 others must be completed in Q4.
The Cabinet leader said the process must ensure the mutual benefits of the State, company employees, and shareholders. He demanded the divestment of State capital from non-core businesses be hastened and asked the Ministry of Finance to guide the settlement of business value assessment bottlenecks.
The equitisation, which sees private investors take large stakes in former SOEs while the state retains some shareholding, is part of the economic restructuring scheme from 2011-15 outlined by a National Assembly resolution. It aims to make the companies more efficient and profitable. Public investment and the country’s banking system are also undergoing significant restructuring.
According to the PM, ministers, State agency leaders, Chairpersons of the provincial and municipal People’s Committees and economic group chiefs must be held accountable for the outcomes of the restructuring, equitisation and divestment of SOEs under their management. He said they must strictly deal with executives who fail to work effectively and address any obstacles by liaising with the Ministry of Finance, the Ministry of Planning and Investment, the Steering Committee for Business Renovation and Development and other authorised agencies.
According to the Steering Committee, 143 SOEs were equitised in 2014, well below the set target of 200. As many as 432 SOEs were subjected to restructuring in 2014 and 2015.
Vietnam has divested approximately 5 trillion VND (over 238 million USD) of State capital from SOEs, gaining nearly 7 trillion VND (333.33 million USD) in total revenue, with 45 percent coming from the real estate sector.-VNA