Nearly 200 SOEs must equitize in final three months of 2015 for annual target to be reached.
Only 94 State-owned enterprises (SOEs) were equitized in the first nine months of the year out a total of 289 slated to undergo the process. If the annual target is to be met there must be 195 enterprises equitized over the remaining three months of the year.
Mr. Dang Quyet Tien, Deputy Director of the Corporate Finance Department at the Ministry of Finance, said one reason for the tardiness was concern among investors, despite the policy mechanisms for equitization having been made easier.
“Foreign investors are involved but only to a small degree, as they are wary about information transparency,” he told local media.
Even though the government has publicly announced valuations conducted on SOEs transparency remains an important matter, as questions remain over the accuracy of such valuations.
The attitude of SOE leaders is also a factor in the equitization process proceeding at a slow pace. Many are concerned about losing their position and power and that their competency or otherwise will be revealed during the process.
Mr. Tien added, though, that the quality of equitization was more important than merely reaching targets. “The key is changing the leadership mindset post-equitization,” he was quoted as saying. “There may be personnel changes, and leaders must accept that their performance will monitored once the SOE is listed on the stock market,”
Authorities are planning to sanction enterprises that are yet to finalize their equitization. Those experiencing delays will continue to be named so they will be answerable to higher authorities such as ministries or the government.