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Vietnam Today

SOE equitization at just 21.1%

Released at: 14:31, 26/06/2015

SOE equitization at just 21.1%

Year-to-date figure well short of target set for the first six months by the government.

by Quynh Nguyen

The Renewal Steering and Business Development Committee has announced that, as at June 23, Vietnam had equitized 61 SOEs out of a total 289 to be equitized this year, or 21.1 per cent of the target.

According to the committee, in order to reach the target set for the year ministries and departments must equitize an additional 228 SOEs, which would require a large degree of determination by ministries, departments, and State economic groups.

Localities that have performed well in the equitization task include Hanoi and with19 companies and Nghe An province with four, while the Vietnam National Coal - Mineral Industries Group (Vinacomin) has equitized five enterprises.

Regarding the results of initial public offerings (IPOs), the State Securities Commission said from early this year to mid-June 46 companies had conducted IPOs, selling 110 million shares in total, or 19.7 per cent of total number of shares offered.

Meanwhile, State divestments in the first six months brought in VND7.5 trillion ($348.8 million). Divestments in five sensitive fields - real estate, securities, banking, insurance, and investment funds - totaled VND3.3 trillion ($153.4 million), or 15 per cent of the target.

Units seeing successful divestments were Viettel, Vietnam National Shipping Lines (Vinalines), the State Capital Investment Corporation (SCIC), the Vietnam Post and Telecommunications Group (VNPT), and Electricity of Vietnam (EVN).

The Steering Committee also pointed out certain weaknesses in the equitization process, in particular delays in issuing policies on innovating management and the restructuring SOEs of some ministries, departments and localities over the last six months.

It recommended ministries, departments and localities uphold their responsibility to restructure SOEs. Ministers and chairmen and women of people’s committees are also responsible for reporting to the government and the PM on the progress of their SOE restructuring plans.

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