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100 more SOEs targeted for equitization by end-2015

Released at: 12:51, 30/12/2014

100 more SOEs targeted for equitization by end-2015

More effort required to accelerate SOE equitization plan next year.

by Thong Dat

Considered one of the key contents of State-owned enterprise (SOE) reform, the government has put forward a plan to complete the equitization of 432 SOEs by the end of 2015. After a review, however, 100 more SOEs have been added to the list, bringing the total to 532.

The new number was released on December 27 at a meeting to review the restructuring of SOEs in 2014 and proposing tasks and solutions for 2015.

As at December 25, 143 SOEs had been equitized during the year, double the number in 2013, while around 167 were re-organized, or 1.65 times higher than last year, according to Mr. Pham Viet Muon, Deputy Head of the National Steering Committee for Enterprise Reform and Development (NSCERD). Three SOEs were dissolved, three were sold, 14 were merged, and three declared bankrupt.

Given the global economic circumstances, local economic difficulties, and the slow recovery of the country’s stock market, such a result reflects the major efforts made by ministries, localities and SOEs, Mr. Muon said, adding that even more effort is required for the country to equitize 532 SOEs as planned. “The deadline for the government to approve equitization plans submitted by SOEs is the fourth quarter of 2015 at the latest,” he said. “The committee will continue to complete policies and mechanisms towards SOE reorganization and equitization.”

A report from the State Securities Commission (SSC) shows that 64 SOEs registered to sell State shares during 2014, with 49 per cent of such shares being sold for a total of VND5.115 trillion ($243.5 million), or 66 per cent of the plan. SOEs also withdrew more than VND6 trillion (285.7 billion) invested in 233 enterprises operating outside of their core business line; six times higher than in 2013.

Among SOEs earning a profit from capital divestment, Vinacomin made VND1.732 trillion ($82.4 million), the Vietnam Rubber Group VND523 billion ($25 million), Vinachem VND245 billion ($11.6 million) and VNPT VND151 billion ($7.2 million). The State Capital Investment Corporation (SCIC) sold State capital in 66 SOEs for VND2.017 trillion ($96 million).

Addressing the meeting, Deputy Prime Minister Vu Van Ninh asked SOEs to continue to focus on equitization and withdrawing State capital from non-core business lines in 2015, with the aim of fulfilling the plan to re-organize and renovate businesses. He also asked NSCERD to complete related policies to improve capacity in the management and supervision of SOEs.

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