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SOEs make good move towards capital withdrawal

Update: May, 28/2014 - 08:33

HA NOI (VNS) — Total capital to be withdrawn from non-core businesses at state-owned enterprises (SOEs) by the end of July might be higher than projected. This statement was made by the Department of Entrepreneurial Finance under the Ministry of Finance quoted by Viet Nam Economic Times.

Next month, the finance ministry will issue a decision regulating the capital withdrawal to accelerate the process.

In the meantime, the department has observed positive moves from enterprises. The Electricity of Viet Nam (EVN) and the Vinacomin Finance Company have proposed detailed plans to withdraw capital from An Binh Bank and VP Bank, respectively.

The Ministry of Construction has hastened the capital withdrawal at Song Da Corporation and Housing and Urban Development Corporation.

Deputy Director of the Department of Entrepreneurial Finance Dang Quyet Tien stated that the ministry would instruct enterprises to carry out equitisation plans once the withdrawal process was completed.

Enterprises are supervised to ensure that they accelerate the process without causing loss.

According to Resolution No 15/NQ-CP of March 6 this year, enterprises were asked to speed up equitisation and divestment of state capital. The enterprises may sell stakes in non-core businesses at below the face value, which will be presented to the prime minister for approval.

Experts revealed that the sale of stakes below the face value, in fact, did not conflict with the market principle as the investments were inefficient. The important issue was ensuring transparency of planning, auctions and prices to the buyers.

Statistics from the Steering Committee on Corporate Renovation and Development revealed that SOEs have managed to withdraw around VND4.164 trillion (US$198.28 million) in the end of April, from their non-core business, comprising 19 per cent of the total non-core investments. — VNS



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