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Vietnam Today

SOE equitization remains tardy

Released at: 07:47, 02/07/2017

SOE equitization remains tardy

Illustrative image (Source: VNA)

Equitization plans of only 19 State-owned enterprises approved this year as at mid-June.

by Van Long

With only 19 State-owned enterprises (SOEs) receiving approval for their equitization plan as at mid-June, progress in the first half of this year was slower than in the first half of last year.

Mr. Dang Quyet Tien, Deputy Head of the Corporate Finance Department at the Ministry of Finance (MoF), was quoted by the Vietnam News Agency as telling a press conference in Hanoi on June 29 that the Vietnam Southern Food Corporation Limited (Vinafood 2) and the Vietnam Rubber Group are among those that need to speed up their equitization.

He attributed the delays to hesitation and a lack of firm measures on the part of the SOEs’ management as well as the market’s low absorption capacity.

Divestment activity has also been ponderous. An MoF report revealed that State-owned groups and corporations divested a total of VND3.4 trillion ($149.5 million) from non-core business lines and recovered VND14.8 trillion ($651 million). Over VND11 trillion ($483.8 million) of this figure, however, was collected from selling Vinamilk shares.

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 enterprises, MoF said that one of the changes will deal with the principles for the transfer of State capital and SOE capital invested in other businesses.

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

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