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Vietnam Today

Committee for State Capital Management at Enterprises set up

Released at: 15:07, 06/02/2018

Committee for State Capital Management at Enterprises set up

The Saigon Beer Alcohol Beverage Corp. (Sabeco), one of State-owned enterprises, has been equitised (Photo from tinnhanhchungkhoan.vn)

Committee to oversee $220 billion in assets at SOEs.

by Quang Huy

The government announced on February 5 that it has set up a committee to oversee around VND5,000 trillion ($220 billion) worth of government assets in enterprises, as part of an effort to boost equitization.

Vietnam has stepped up its planned divestment from hundreds of State-owned enterprises (SOEs) to boost their performance and ease a tight State budget. Progress has been slow but has picked up since 2016, when the current administration took office.

The Committee for State Capital Management at Enterprises will be more comprehensive than the State Capital Investment Corporation (SCIC), Vietnam’s main State investment arm that holds shares in firms like Vinamilk, the country’s largest listed firm.

The committee will have its own legal status, a seal bearing the national emblem, and a bank account at the State Treasury. It will not manage SOE performance, only State capital and assets.

Many State shares, especially in SOEs, are under the management of different ministries, causing complications and delays in selling stakes in some instances. For example, the Saigon Beer Alcohol Beverage Corp. (Sabeco) and the Hanoi Beer Alcohol Beverage Corp. (Habeco), Vietnam’s largest beer brewers, are under the Ministry of Industry and Trade, while telecoms firm MobiFone, which is also earmarked for equitization, is under the Ministry of Information and Communications.

A working group on the formation of the committee was established in mid-January with eleven members, headed by Deputy Prime Minister Vuong Dinh Hue and four deputy heads - the Head of the Office of the Government and Minister Mai Tien Dung, Minister of Planning and Investment Nguyen Chi Dung, and Minister of Finance Dinh Tien Dung. Former Secretary of the Cao Bang Provincial Party Committee Nguyen Hoang Anh, the would-be Chairman of the super committee, was assigned as standing deputy head of the working group.

Detailed guidelines on the committee’s function and mission are expected to be released in the second quarter, Deputy Minister of Planning and Investment Nguyen The Phuong said.

Nine corporations and 21 enterprises will be managed by the new committee, including the Vietnam Oil and Gas Group (PetroVietnam), the Vietnam National Coal-Mineral Industries Holding Corporation Limited (Vinacomin), the Vietnam Posts and Telecommunications Group (VNPT), the Vietnam National Petroleum Group (Petrolimex), the Bao Viet Holdings Insurance Company (BaoViet), Sabeco, and Airports Corporation of Vietnam (ACV), among others.

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