Equitization Very Slow: Finance Minister

According to the plan approved by the Prime Minister, in the period of 2017-2020, 128 enterprises must be equitized, but so far only 36 enterprises have done the task. 

The information was mentioned in the conference on renovating and improving the performance of State-owned enterprises (SOEs) chaired by the Prime Minister Nguyen Xuan Phuc today, October 16, 2019.

According to the Ministry of Finance, by the end of the fiscal year 2017, there were 526 enterprises with 100% of charter capital owned by the State. Therefore, under the Prime Minister's Decision in Decision 707/QD-TTg, agencies will have to prepare restructuring plans for 526 SOEs and submit for approval.

As of September 30, 2019, 148 SOEs had their restructuring plans approved by the authorities under Decision No. 707. The number of enterprises with restructuring plans not yet approved was 378, accounting for 71%.

Accumulated from 2016 to September 2019, the number was 168 enterprises with a total enterprise value of VND443,056 billion, in which the value of State capital was VND206,694 billion.

Regarding divestment, from 2016 to September 2019, in total VND24.510 trillion were withdrawn, collecting VND170.629 trillion.

According to Finance Minister Dinh Tien Dung, equitization implementation under the direction of the Prime Minister is taking place very slowly. According to the plan, in the period of 2017-2020, 128 enterprises must be equitized, but so far 36 only enterprises have done the task.

The units that still have many enterprises on the list of equitization to 2020 are: Hanoi City: 13 enterprises (4 corporations), accounting for 14% of the plan; Ho Chi Minh City: 38 enterprises (11 corporations), accounting for 40% of the plan; State Capital Management Committee: 6 enterprises (3 groups, 3 corporations); Ministry of Industry and Trade: 4 enterprises (3 corporations); and Ministry of Construction: 2 corporations.

SOEs currently hold total assets of VND3,000 trillion and capital of VND1,500 trillion, almost equal to the size of the country’s GDP of VND5,000 trillion.

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