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More State firms to be equitised in 2015

Update: January, 03/2015 - 09:50
A worker packages products for export at Van Dien Fused Magnesium Phosphate Fertiliser Co, a member of the Viet Nam National Chemical Group. The number of State-owned enterprises set to be equitised during the period of 2014-15 will increase from 432 to 532 companies. — VNA/VNS Photo Hoang Hung
HA NOI (VNS)— The number of State-owned enterprises (SOEs) set to be equitised during the period of 2014-15 will increase from 432 to 532 companies.

The increase was the result of the latest review of the government's restructuring plan for the SOEs. This was announced at a meeting conducted by the Steering Committee for Innovation and Development of State-owned Enterprises last weekend. The meeting was held to evaluate the restructuring progress of the SOEs in 2014.

A total of 143 SOEs have been equitised as of December 25. This number is twice that recorded in 2013. Meanwhile, 167 enterprises have been re-arranged, which indicate an increase of 160 per cent compared with that of last year.

According to the 2014-15 restructuring plan of SOEs, 479 businesses will be arranged, 432 will be equitised, 22 will be dissolved and 25 will be merged.

The State Securities Commission reported that 76 SOEs in 2014 sold stakes on the stock exchange. From these enterprises, 64 collected a total amount of VND5.115 trillion (US$239 million), or 66 per cent of the plan. The surplus revenue earned from these share sales reached VND1.324 trillion (nearly $62 million).

Government Office Vice Chairman Pham Viet Muon appraised the restructuring efforts made by the ministries and enterprises despite the difficulties faced in the domestic and the world economic environments.

However, Muon disclosed that some ministries and localities were still slow in carrying out the restructuring plan. These ministries include Defence, Health, and Industry and Trade. The Ministry of Natural Resources and Environment and the Viet Nam Cement Industry Corporation, as well as 33 cities and provinces, also exhibited slow implementation.

In addition, a number of policies have not been issued and amended timely. The delay contributed to the slow restructuring progress.

Muon encouraged all ministries, sectors and localities to exert greater efforts to achieve the goal of equitising 532 state enterprises by the end of next year. In addition, the Steering Committee should continue to improve the legal framework of the arrangement and innovation of the state enterprises.

The Steering Committee also set the timetable to equitise the enterprises that showed slow progress. This move was made to ensure that all enterprises will have equitisation plans approved no later than the fourth quarter of next year.

Subsequently, the businesses eligible to make initial public offerings (IPO) must proceed according to the regulations set. Businesses that are ineligible for IPOs must shift into a joint stock company with multiple shareholders including the State, the State Capital Investment Corporation, labour union, or employees to diversify the owners and make corporate governance more transparent. Other shareholders should be considered as well.

The State corporations and localities will continue to review and update the list of companies targeted to be equitised. The list will be submitted to the prime minister for approval in the first quarter of 2015.

With regard to the divestment of the state's capital as of December 25, the state's enterprises have sold shares worth VND6.076 trillion ($284 million) in 233 companies, collecting more than VND8 trillion ($374 million). This amount is 1.3 times higher than the book value.

The sectors that divestments brought profits from included finance and banking, real estate and insurance. — VNS


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