Vietnam to equitise 137 more state-owned enterprises by 2020

Created 31 May 2017
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Prime Minister Nguyen Xuan Phuc has recently approved a plan on restructuring state-owned enterprises (SOEs) in the 2016-2020 period.

Under the plan, during the 2016-2020 period, the government will equitise 137 SOEs and continue to hold a 100% stake in 103 SOEs, excluding defence and military enterprises, the State Capital Investment Corporation and the Vietnam Asset Management Company.

The plan is aimed to promote divestment from non-core businesses and increase the SOEs’ financial as well as management capacity. It is also expected to deal with the ineffective operations of SOEs and loss-making projects, particularly 12 projects managed by the Ministry of Industry and Trade.

The government has assigned the Ministry of Finance to issue decrees which aimed at clarifying accountability of consultancy organisations in evaluating state assets owned by SOEs for privatisation and divestment, as well as implementing mechanisms to attract strategic investors.

The prime minister also asked to increase supervision to prevent losses to state assets during the restructuring progress and underlined the determination to handle loss-making SOEs and inefficient projects.

The overhaul of SOEs in the previous five-year period helped reduce the number of SOEs, however, the restructuring progress remained stagnant; the state still held controlling stakes in many sectors, and the efficiency of SOEs was low, compared to its resources.

Between 2011 and 2015 almost 600 SOEs were equitised, some 96% of the target number.

 

 

Source: Dtinews

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