|Workers package compact flourescent lamps at a factory of Dien Quang Lamp Joint Stock Company in HCM City. The company was one of the first State-owned businesses to be equitised in Viet Nam. — VNA/VNS Photo An Hieu
HA NOI (VNS)— Forty three State-owned enterprises (SOEs) had been privatised by the end of May, 15 per cent of the total number.
Dang Quyet Tien, Deputy Director of the Corporate Finance Agency, said at a meeting yesterday another 246 SOEs needed privatising by the end of this year.
He said that progress was slow and remained a challenge for the Government.
Although the privatisation of SOEs must adhere to the Government's timeline, the quality of the work must be high to ensure the firms are financially healthy.
Government agencies would differentiate SOEs ready for Intial Public Offerings (IPO) from those that were not, Tien said.
"Only those that meet the financial standards will be able to hold their IPOs, or they will be transformed into joint-stock companies", Tien said.
More specifically, those that were transformed into joint-stock companies would have to plan for IPO within 12 months, he said, adding that joint-stock companies had to declare themselves bankrupt or be sold if they failed to make IPO plans.
A Finance Ministry representative provided an additional solution in which the leaders of companies and industries are made more accountable for the privatisation progress.
If the companies continue to delay their privatisation, the directors would be removed, Tien said.
Tien was uncertain if all the transformations could be completed by the end of this year, but promised that the Government would speed up the work.
The Finance Ministry reported that by the end of the first quarter, the Government had divested VND8.2 trillion (US$379.6 million) from State-owned companies.
The Government now has to divest VND19.5 trillion more ($902.7 million) from State-funded firms, including VND12 trillion ($555 million) that exists in banking and real-estate sector. — VNS