Monday, September 25 2017

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MoF to publish names of errant privatised SOEs

Update: June, 13/2017 - 14:42
The finance ministry is proposing that capital divestments at State-owned enterprises, such as Sabeco, be sped up. - Photo vietnamfinance.vn
Viet Nam News

HÀ NỘI – The Ministry of Finance said the names of State-owned enterprises (SOEs) which had been privatised but failed to list on exchanges as per regulations would be published on the Government’s e-portal.

The finance ministry said that there were 578 privatised enterprises which had not registered for listing on stock exchanges. The list has already been sent to Prime Minister Nguyễn Xuân Phúc.

Enterprises which must transfer State capital ownership to the State Capital Investment Corporation (SCIC) would also have their names published.

The finance ministry said that the progress of privatisation, capital divestment and restructuring of SOEs remained slow in the first five months of this year.

 “The transferring of State capital ownership to SCIC is slow. The capital divestment results are also bellow expectation,” the ministry said in a report.

SOEs which must be privatised and divested in this period are mainly of large scale with multi-sector operation and complicated financial situation, the ministry said, adding that it would take time to prepare for evaluation of the corporate value and finding of strategic investors.

The ministry’s report showed that by May 31, enterprises with a total corporate value of more than VNĐ4.15 trillion (US$182 million) were given approval for their privatisation plans, in which State capital accounted for nearly 30 per cent.

Regarding capital divestments, SOEs collected VNĐ14.8 trillion by selling stakes worth VNĐ3.5 trillion in book value.

In the five-month period, SCIC sold stakes at 18 enterprises and collected VNĐ12.2 trillion.

Habeco, Sabeco

The finance ministry also proposed the capital divestments at beverage producers Habeco and Sabeco be sped up, following the Prime Minister’s directive.

The capital divestments at Habeco and Sabeco saw little progress, since the foundation of a steering committee in charge of this in October last year.

In August 2016, the Ministry of Industry and Trade announced plans to divest out of the two leading beverage companies.

Accordingly, it was to sell the State’s entire stake of 82 per cent at Habeco in 2016 and collect approximately VNĐ9 trillion.

For Habeco, the stake sales were to be implemented in two phases, 53.59 per cent of the charter capital in 2016, equivalent to VNĐ24 trillion, and the remaining 36 per cent of the charter capital would be sold in 2017. However, these plans were missed.

The finance ministry also told the Prime Minister to decide soon on the plan to sell SCIC’s stakes in national dairy firm Vinamilk. — VNS

 

           

 

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