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Vietnam Today

State to own only 103 SOEs by 2020

Released at: 14:04, 31/05/2017

State to own only 103 SOEs by 2020

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Restructuring scheme to equitize all SOEs except those performing key functions.

by Ngoc Chi

The State will only hold 100 per cent of capital in 103 State-owned enterprises (SOEs) by 2020, according to the scheme “Restructuring State-owned Enterprises, Focusing on Economic Groups and State Corporations in the 2016-2020 Period” approved by Prime Minister Nguyen Xuan Phuc.

Under the scheme, the government targets to complete the equitization of 137 SOEs and by the end of 2020 will hold 100 per cent of capital in only 103.

The 103 SOEs exclude agro-forestry enterprises, defense and security enterprises, the State Capital Investment Corporation (SCIC), the Vietnam Debt and Asset Trading Corporation, and the Vietnam Asset Management Company.

The scheme’s objectives are to restructure, equitize, and divest State capital so that SOEs have a more rational structure, focusing on key sectors.

SOEs will provide essential social products and services to society, national defense and security, and natural monopolies.

The restructuring encourages SOEs to apply high technology, make large investments, and create a driving force for socioeconomic development in sectors where other enterprises will not invest.

The goal of the government is to implement the scheme publicly and transparently under the market mechanism and laws on equitization and divestment, avoiding the influence of interest groups and losses of State capital and assets.

The government is also focused on addressing shortcomings and weaknesses in 12 projects and SOEs in industry and trade that have been delayed or are ineffective and will continue to review other projects and enterprises.

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