Government to fully own 34 less SOEs by year 2020

June 04, 2017 - 16:43

The Government aims to reduce the number of fully State-owned enterprises (SOEs) from 137 to 103 by the end of 2020, according to a plan approved by the Prime Minister.

HÀ NỘI — The Government aims to reduce the number of fully State-owned enterprises (SOEs) from 137 to 103 by the end of 2020, according to a plan approved by the Prime Minister.

The plan, which aims help restructure State-owned companies and corporations in the period 2016-20, excludes a number of companies, including the State Capital Investment Corporation (SCIC), Debt and Asset Trading Corporation, Việt Nam Asset Management Corporation (VAMC) and SOEs in the agriculture, forestry, defence and security sectors.

Those State-owned companies are already included in the Decision 58/2016, issued by the Prime Minister in late December 2016, classifying State-invested businesses and SOEs to be restructured in 2016-20.

Under the plan, the Government must develop its roadmap to sell its stakes in joint-stock companies and over-two-member limited liability companies to meet the requirements of the Decision 58/2016.

The plan also aims to improve the quality of financial management, corporate governance and human resources management. In addition, it mandates diversifying the portfolio of products and business activities and strategies to raise the quality of business operation.

The Government will also solve weaknesses and issues in the business operation of SOEs and State-invested companies; resolve problems in the inefficient businesses and projects that have suffered losses and generated low profits; and address the individuals and organisations that are accountable for problems in those business and projects.

The plan is expected to re-direct and re-structure SOEs to focus on their core sectors and businesses and  provide more products and services for the development of society and national defence and security.

In addition, the plan will make the operation of SOEs transparent and compliant to the market rules and regulations, and avoid loss of State capital and “group interest” in SOE equitisation.

The plan will also improve the quality of corporate governance for SOEs by separating State ownership from State management in those companies.

VTVCab valued at $190 million

The State Audit Office of Việt Nam has reported that the total asset value of Việt Nam Television Cable Corporation (VTVCab) reached nearly VNĐ4.28 trillion (US$190 million), which included VNĐ4.23 trillion in the company’s total value.

In a report of the Government’s auditing agency that has been recently published by local media, the State investment in VTVCab was valued at VNĐ2.68 trillion.

The figures were about VNĐ278 billion higher than the number that VTVCab had previously reported upon the valuation conducted by the CPA Vietnam Auditing Co Ltd on January 1, 2016.

According to the Government’s audit agency, VTVCab was undervalued as CPA Vietnam did not assist VTVCab to identify and categorise all the assets of the pay-TV service provider, including real estate properties.

The valuation of VTVCab was done to prepare for the equitisation of the pay-TV service provider on the recent request of Deputy Prime Minister Vương Đình Huệ.

VTVCab is one of the SOEs that the State has to reduce its ownership to below 51 per cent from current 100 per cent by 2020. — VNS