Deputy PM pushes SOE equitisation

Deputy Prime Minister Vuong Dinh Hue called for speeding up the equitisation of State-owned enterprises (SOEs) at a recent meeting of the Steering Committee for Business Renovation and Development.

Cement bags produced by the Vietnam Cement Industry Corporation. ​(Source: VNA)

Hue asked relevant ministries to finalise the regulations describing the rights and obligations of State ownership representatives in order to boost SOE privatisation. He also asked them to submit reports on the results of SOE restructuring in 2017 to the Government.

Statistics of the Steering Committee for Business Renovation and Development showed that 21 SOEs were equitised between January and November, collecting a total of more than 2.2 trillion VND (97 million USD).

If enterprises under the Ministry of National Defence were included, 43 SOEs were privatised in the 11-month period. As many as 55 SOEs were scheduled to be equitised this year, equivalent to the number of equitised enterpries in 2016.

Four SOEs were allowed to delay their privatisation to 2018, which are the Housing and Urban Development Corporation, Vietnam Cement Industry Corporation, Khanh Viet Corporation and Vietnam Television Cable Corporation.

State capital divestments from January to November collected 25 trillion VND, 20 trillion VND of which came from capital withdrawal from national dairy firm Vinamilk. After liabilities, the divestments were worth more than 5.2 trillion VND in book value.

In the remaining months of this year, the State expected to collect around 10 trillion VND from equitisation efforts. These include the initial public offerings of Song Da Corporation and Becamex Binh Duong and the sale of the State stakes at IDICO and Thanh Le Binh Duong to strategic investors, as well as the divestment from Sabeco.

Hue also asked relevant ministries and agencies to hasten the restructuring and renovation of SOEs in 2016-20 period. On November 22, the Government issued Resolution No 121/NQ-CP to address difficulties facing SOE privatisation and speed up the progress.

(Source: VNA)