State-owned enterprise restructuring slow: finance ministry

The restructuring of State-owned enterprises (SOEs) in the first nine months of the year was slower than expected with only 49 enterprises receiving approval for their equitisation plans.

According to the Ministry of Finance, the total value of the aforementioned enterprises is estimated at nearly VND32 trillion (US$1.44 billion), of which the value of State shares account for more than 72%.

Illustrative image. Photo: Huu Chi

The ministry’s corporate finance department said equitisation in the past nine months was behind schedule because it included unfinished tasks from the 2011-2015 period.

In addition, most of the SOEs to be restructured now are large enterprises, with complex financial activities and cover a wide range of businesses, therefore, the equitisation requires more time and effort.

A number of large SOEs include the Machines and Industrial Equipment Corporation, Vietnam Engine and Agricultural Machinery Corporation and Vietnam Construction Consultancy.

Under the equitisation plans of these 49 enterprises, the State will retain less than half of VND23 trillion (US$1 billion) in their charter capital while the rest will be sold to strategic investors, employees, trade unions and the public.

In the first nine months of 2016, the finance ministry brought in more than VND3.2 trillion (US$144 million) from selling State stakes in a number of enterprises.

Over the time ahead, the corporate finance department will continue divesting State capital from enterprises where a majority State stake is not necessary and streamline the restructuring and corporate management at SOEs.

(Source: NDO)