To attract foreign investment

(Baonghean) - The plan for restructuring state-owned enterprises (SOEs), focusing on state-owned economic groups and corporations, has been issued by the Prime Minister to help SOEs achieve a more rational structure, concentrate on key industries and sectors, and provide essential public goods and services to society.Nghe An Newspaper had an interview with Mr. Dang Quyet Tien, Deputy Director of the Department of Corporate Finance (Ministry of Finance), about attracting foreign investment in this process.

Workers at the Nam Dan - Hanosimex textile and garment complex. Photo: N. Khoa

* Mr. Dang Quyet Tien, in the process of restructuring state-owned enterprises, what are the new points considered breakthroughs for the entire process?

* Deputy Director Dang Quyet Tien:A key breakthrough in the government-led project is the clear definition of the role of state-owned enterprises (SOEs) and the evaluation of their performance in the socialist-oriented market economy. Accordingly, SOEs will be restructured to focus on key industries and sectors, providing essential public goods and services to society, serving as the core for the state economy to fulfill its leading role, and acting as a crucial material force for the State to guide and regulate the economy and stabilize the macroeconomy.

*According to you, during that process, what did the government do to attract investors, especially foreign investors, to participate in the restructuring of state-owned enterprises?

*Deputy Director Dang Quyet Tien:Over the past period, the Government, the Ministry of Finance, and relevant agencies have taken many timely measures to overcome difficulties and promote the restructuring of state-owned enterprises (SOEs). Specifically, the Government has issued and implemented Decree No. 61/2013/ND-CP and Decision No. 36/2014/QD-TTg, and in 2014 passed the Enterprise Law, the Law on Management and Use of State Capital Invested in Production and Business at Enterprises, and Decree No. 81/2015/ND-CP.

Decrees on financial supervision and performance evaluation have promoted both foreign and domestic investment flows into the equitization process of state-owned enterprises (SOEs), while simultaneously fostering fundamental qualitative changes in enterprises after equitization, in line with the objective of transforming corporate governance, technology, and science and engineering with the participation of foreign managers. This also limits opportunistic and speculative intermediaries.

* So, you highly value the role of strategic investors and the participation of foreign strategic investors?

Deputy Director Dang Quyet Tien:That's right. Regarding policy mechanisms for foreign investors, the Government identifies attracting foreign investment as a key task, of significant importance in the socio-economic development of the country. In recent years, the Vietnamese Government has consistently focused on and improved the mechanism for the equitization of enterprises, aiming to create favorable conditions for foreign investors to participate in investment and share purchases. Furthermore, the equitization process must ensure transparency and openness, and investors participating in share purchases must have access to complete information about the enterprise's situation...

On September 15, 2015, the Prime Minister issued Decision 41/2015/QD-TTg on the sale of shares in blocks, creating conditions for investors (including foreign investors) to purchase large quantities of shares in blocks, provided that participating investors have financial capacity, a commitment to long-term interests with the enterprise, a plan to continue employing existing workers, and support the enterprise's continued development. Even the previously stipulated restrictions were amended by the State to allow enterprises and investors to participate if the State can manage and the non-state economic sector can do so.

Thank you very much, sir!

Red River (executed)