Updated  
April, 17 2014 08:52:00

SOEs stakes may be sold at discount rates

HA NOI (VNS)  — A draft regulation about allowing State-owned enterprises (SOEs) to sell stakes in non-core businesses at below the face value would be presented to the Prime Minister for approval.

This is part of the efforts to accelerate the SOEs' restructuring process. According to Deputy Director of the Department of Entrepreneurial Finance Dang Quyet Tien, the decision about speeding up capital withdrawal from non-core business in the 2013-15 period was now being evaluated by the Ministry of Justice and would be submitted to the Prime Minister this month.

Tien said that the regulations would tackle the problems which the SOEs were encountering during the capital withdrawal process, while preventing losses to the State assets.

Nguyen Duc Tang, an expert in equitisation, was quoted by Dau Tu Chung Khoan (Securities Investment) newspaper as saying that the sale of stakes below the book value, in fact, did not conflict with the market principle as the investments were inefficient.

What's important was to ensure transparency during the capital withdrawal process in order to prevent losses to the State assets.

The transparency must be there right from planning, auctions and prices to the buyers, he said.

According to the Department of Entrepreneurial Finance, the plan and progress of the State's capital withdrawal from non-core fields must be approved by the relevant authorities.

Then, the share transfers would be conducted under trading on stock exchanges, public auctions or direct deals.

The restructuring of SOEs is currently underway in Viet Nam. However, the process has been going slow. Statistics from the Steering Committee on Corporate Renovation and Development showed that SOEs, to date, managed to withdraw around VND4.164 trillion, or US$198.28 million, from their non-core business, comprising 19 per cent of the total non-core investments. — VNS


Send Us Your Comments:
Name:
Your E-mail address:
Title:
 

VietNamNews may edit your comments and not all emails will be published.

Highlight

HCM City struggles to control influx of substandard produce 1    HCM City struggles to control influx of substandard produce

High demand for farm produce and the sheer variety of ways in which it is brought into HCM City from other localities makes quality control a very difficult task, officials say.

Hoi An hosts silken rendezvous Hoi An hosts silken rendezvous

Top craftsmen and women from seven silk villages in Viet Nam will participate in the Viet Nam Silk Culture Day at Hoi An city's Silk Village centre on December 28.

Local art smashes auction record Local art smashes auction record

Days after noted Vietnamese artist Le Pho's View from the Hilltop set a new auction record, art collector Nguyen Minh still has a lingering feeling of regret.

Long Bien Bridge preservation divides planners 2    Long Bien Bridge preservation divides planners

Architecture and cultural managers discussed Long Bien Bridge's future at a seminar held on Wednesday in Ha Noi.

Malaysia crush VN in AFF semis Malaysia crush VN in AFF semis

Viet Nam suffered a nightmare yesterday at My Dinh Stadium in Ha Noi as they were knocked out of the ASEAN Football Federation-Suzuki Cup.