No SOE equitisation plans approved in Q1

No SOE equitisation plans approved in Q1

Đặng Quyết Tiến, general director of the finance minitry’s corporate finance department, speaks at the press conference on Thursday. — VNS Photo

HÀ NỘI — No State-owned enterprises (SOEs) gained approval for their equitisation plans in the first three months of  二0 一 九, according to the Ministry of Finance’s Corporate Finance Department.

Đặng Quyết Tiến, the department’s general director, said at a press conference on Thursday that the lack of approvals had slowed the equitisation plan set by the ministry for SOEs under its management.

In  二0 一 九, the finance ministry has set a goal to equitise  一 八 SOEs, plus  四 一 SOEs left over from  二0 一 八 that failed to meet their targets. 

If the SOEs did not make any progress, they would likely fail to accomplish their plans on schedule, said Tiến.

Factors slowing down the equitisation process include the SOEs’ scale of business and assets – which require careful valuation to avoid losses for the State budget – and land issues, he told reporters.

Some of the SOEs had not completed their land use plans and submitted them to Government agencies, Tiến said.

Local authorities should also take responsibility for the late equitisation as officials have performed poorly in inspecting and issuing land use certificates for SOEs, leading to delays, he said.

Under Document  九 九 一/TTg-ĐMDN dated July  一0,  二0 一 七 by the Prime Minister, the finance ministry is responsible for pushing the equitisation of  一 二 七 SOEs, including  八 二 that must undergo the process in  二0 一 八 and  二0 一 九.

In  二0 一 八,  二 三 SOEs got approval for their equtisation plans with total corporate value of VNĐ 三 一. 七 trillion (US$ 一. 三 六 billion),  五 三 per cent of which is State capital.

Total charter capital of the  二 三 SOEs was VNĐ 二0. 三 trillion,  六0 per cent of which is State ownership. Those firms sold VNĐ 二. 五 四 trillion worth of shares to strategic investors and VNĐ 五. 四 三 trillion worth of shares through initial public offerings (IPOs).

From  二0 一 六 to  二0 一 八, the Government and its agencies approved equitisation plans for  一 五 九 SOEs with total corporate value of VNĐ 四 四 二. 三 trillion,  四 六. 五 per cent of which is State capital. — VNS