City plans 2015 SOE divestment

Update: April, 20/2015 - 08:06

HCM CITY (VNS) — A meeting was convened by the southern city's People's Committee last week to discuss the completion of divestment at State-owned enterprises (SOEs) in HCM City in 2015.

Addressing the event, the Deputy Head of the sub-committee for enterprise reform, Huynh Trung Lam, said 14 SOEs under city governance had been directed to withdraw over VND3.6 trillion (US$171 million) from non-core areas in 2015.

However, the amount divested by the SOEs during the first quarter of 2015 would be a mere VND307 billion ($14.6 million).

According to the city's leaders, the divestment has been delayed by an underperforming stock market, an abundance of stock supplies to businesses, and a myriad of regulations that must be abided.

The Vice Chairman of the HCM City People's Committee, Le Manh Ha, has requested that SOEs pledge to complete their divestment process by the end of the year and take action to hasten the process.

In 2014, there were 107 enterprises under the city's management, with 15 of them being restructured. — VNS