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SOEs need breakthrough in equitisation: Deputy PM

Update: January, 19/2019 - 09:00
State-owned enterprises (SOEs) need to make a breakthrough in equitisation and divestment, said Deputy Prime Minister Vương Đình Huệ during a conference in Hà Nội on Friday.— VNA/VNS Photo

HÀ NỘI — State-owned enterprises (SOEs) need to make a breakthrough in equitisation and divestment, said Deputy Prime Minister Vương Đình Huệ during a conference in Hà Nội on Friday.

Huệ, who is also head of the Government’s Steering Committee for Innovation and Collective Economy Development, said regarding State divestment, Resolution 12-NQ/TW set out principles for divestment, in which it required publicity, transparency and maximisation of the value of State capital according to the market, not preservation of State capital.

Huệ said that over the past three years, the Government and the Prime Minister had completed laws and policies towards increasing openness and transparency in the equitisation and divestment of each enterprise.

As a result, he said equitisation and divestment had been strictly implemented by ministries, localities and enterprises, maximising the interests of the State and contributing to supporting the development of private enterprises.

“There have been no major frauds or violations found in the past three years, although this is a very complicated and sensitive area. In addition, the State Capital Management Committee has successfully taken over 19 SOEs. The transfer did not affect the operation, production and business results of these SOEs,” Huệ said.

“The mistakes we are dealing with have been accumulated from many previous stages,” the Deputy Prime Minister added.

He said ministries, industries and corporations were very responsible. The sale of capital of some large enterprises was successful, with hundreds of investors participating.

However, he pointed out shortcomings relevant to the progress of equitisation, which was slow compared to the plan. According to the plan approved by the Prime Minister, the equitisation of 85 SOEs had to be completed in 2018, however, only 32 were equitised.

He said some ministries, branches and localities, including Hà Nội and HCM City, must submit adjusted progress plans, which are verified by the Ministry of Planning and Investment before being submitted to the Prime Minister.

Huệ said in several cases in which the market price was below the value, it could still withdraw capital immediately to avoid more losses for the State.

According to Nguyễn Hồng Long, deputy head of the Steering Committee for Enterprise Innovation and Development, there were 32 SOEs approved for equitisation last year.

The State would keep 58.44 per cent of the total charter capital. The value of IPOs, sold to strategic investors, was 4.67 times higher than in 2017 and 1.4 times higher than in 2016.

Ministries and localities sold shares at the initial public offering (IPO) of 30 enterprises, including large-scale companies of Rubber Group and Bình Sơn Refining and Petrochemical Company Limited, collecting more than VNĐ24.25 trillion (US$1.04 billion). Along with equitisation, the State also collected more than VNĐ16 trillion from divestment, 2.58 times higher than the book value.

“Total revenue from equitisation and divestment in 2018 reached nearly VNĐ40.3 trillion. In accumulation of three years from 2016 to 2018, this total revenue reached more than VNĐ210 trillion, nearly 2.7 times higher than that of the whole period 2011-15,” Long said. — VNS

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