Wednesday, April 8 2020

VietNamNews

Ministry eases land issues to boost SOEs’ equitisation

Update: March, 19/2020 - 08:25
A cement production line at Việt Nam Cement Industry Corporation. The company is among 93 SOEs must undergo equitisation in 2020. — Photo cafef.vn

HÀ NỘI — As issues related to land use rights still hinder State-owned enterprises from executing equitisation on time, the finance ministry has built a draft to amend the current decree regulating land issues.

The draft aims to amend Decree 126/2017/NĐ-CP issued in November 2017 to resolve land-related problems for both businesses and Government agencies.

Ninety-three State-owned enterprises must complete equitisation by the end of 2020 under Decision 26/2019/QĐ-TTg issued by the Prime Minister Nguyễn Xuân Phúc in August 2019.

“The plan is unlikely to be completed in 2020 as most companies, especially large-cap firms, have failed to finish business evaluations regarding the huge amount of land under their authority,” said Đặng Quyết Tiến, director-general of the Ministry of Finance's Corporate Finance Department.

“This is because the practices of business evaluation are restricted by Decree 126, the building of the draft would help businesses resolve land-related issues and shorten equitisation processes,” Tiến said.

“The draft decree to replace the Decree 126 will be submitted to the Government for approval as early as possible in the first quarter of this year,” he said.

Among the 93 SOEs that must equitise this year, 38 firms based in HCM City and 13 in Hà Nôi.

Under the plan, the State aims to hold at least 65 per cent of charter capital in four SOEs, including Bank for Agriculture and Rural Development, National Coal-Mineral Industries Holding Corporation Limited, Northern Food Corporation and Mineral One-member Company Limited.

The State will also hold at least 50 per cent to below 65 per cent of charter capital in 62 other SOEs, including Mobifone Telecommunications Corporation, Vietnam Posts and Telecommunications Group, Vietnam National Coffee Corporation, Vietnam Cement Industry Corporation, Hà Nội Transportation Corporation, Investment Corporation and Urban Infrastructure Development Investment Corporation.

There are 27 enterprises in which the State will hold 50 per cent or less of charter capital, such as Housing and Urban Development Investment Corporation, Việt Nam Paper Corporation and Saigon Jewelry Company Limited. — VNS

 

 

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