Prime Minister also warns of consequences for administrations shirking their responsibilities.
To complete the equitization of 289 state-owned enterprises (SOEs) this year, the Prime Minister has asked the Ministry of Finance (MoF) to build up guidelines on their sale in large batches. Accordingly, he agreed with previous recommendations by Transport Minister Dinh La Thang on selecting the best strategic investor for enterprises undergoing equitization.
According to Mr. Thang, the auction of small blocks of shares would not attract the participation of large investors, who may prefer to seek a majority stake, leading to difficulties in implementing businesses strategies in equitized enterprises in the future.
The Ministry of Transport (MoT) will set out specific conditions, including investors’ financial capacity and their expertise in the business to select the best option. This would help the operation of the enterprises post-equitization. The MoT is now seeking permission to select the best strategic investor for enterprises undergoing equitization including Saigon Port, Hai Phong Port and Vietnam Motors Industry Corporation (Vinamotor).
The government has also asked the ministers of ministries, chairmen of localities and chairmen of SOEs undergoing equitization to be administratively responsible to the Prime Minister in matters of restructuring, equitization or divestment under their charge. "Those who are responsible for these processes but do not complete their tasks or their performance is not good will be punished,” the Prime Minister stated.