Limiting loss of capital and state assets

(Baonghean) - Policies and mechanisms on corporate financial management and arrangement, equitization, and divestment of state capital in enterprises have been fully and synchronously issued, adjusted, and supplemented. This activity helps management work to be consistent with the actual operations of enterprises and the market situation, creating conditions for enterprises to complete equitization plans; and divestment of non-core investments. Thereby, helping enterprises with capital to focus on investing in the main business fields and sectors, avoiding scattered investment, and limiting the loss of capital and state assets.

Regarding the number of enterprises that have been restructured and equitized, in the period 2011 - 2015, 588 enterprises have been restructured, of which 508 enterprises have been equitized and 80 enterprises have been restructured in other forms. The total actual value of the 508 enterprises that have been restructured is 760,774 billion VND, of which the actual value of the state capital is 188,274 billion VND.

Produced at Hoang Thi Loan Textile Joint Stock Company. Photo: Phan Toan

The divestment situation shows that the divestment results in 5 sensitive areas of state-owned corporations and groups were 11,036 billion VND, with a revenue of 10,742 billion VND (revenue decreased compared to the books due to the divestment of 800 billion VND by the Oil and Gas Group and 1.3 billion VND by the Southern Food Corporation at 0 VND under the direction of the State Bank). SCIC alone has received 67 enterprises, with an accounting book value of 1,666 billion VND, bringing the total number of enterprises SCIC has received since its establishment to nearly 1,000 enterprises with a total state capital value of more than 8,722 billion VND. SCIC has sold capital in 411 enterprises, with capital sale revenue reaching 8,726 billion VND, cost of capital 3,595 billion VND, capital sale surplus of more than 5,130 billion VND, 2.4 times the book value.

In 2016, 56 enterprises had their equitization plans approved by competent authorities. Of these, 6 were state-owned corporations, 3 were approved by competent authorities for their enterprise values, and were developing equitization plans to submit to competent authorities for consideration and approval (Southern Food Corporation, IDICO Corporation, HUD Corporation). The total actual value of the 56 enterprises that had their equitization plans approved was 34,017 billion VND, of which the actual value of the state capital was 24,390 billion VND. According to the equitization plan approved by competent authorities, the charter capital of 56 units is 24,379 billion VND, of which the State holds 11,937 billion VND, sells to strategic investors 7,670 billion VND, sells to employees 388 billion VND, trade unions 8 billion VND, the number of shares sold in public auction is 4,374 billion VND.

Regarding divestment activities, in 2016, units divested 3,646 billion VND, earning 6,840 billion VND. Of which, in 5 sensitive areas, corporations and general companies divested 490 billion VND, earning 450 billion VND. The value earned was lower than the invested value because Thanh Le Corporation divested 100.6 billion VND at Chanh My Garden Villa Area, earning 18.3 billion VND. Divestment of investment capital in enterprises other than 5 sensitive areas reached 1,578 billion VND, earning 2,273 billion VND. SCIC sold capital in 67 enterprises with a value of 1,577 billion VND, earning 4,116 billion VND.

Assessing the results achieved, the Ministry of Finance said that, implementing the direction of the Government and the Prime Minister, in the period of 2011 - 2015 and 2016, the units have implemented the restructuring project of state-owned enterprises and achieved some remarkable results. Basically, in the past time, economic groups, state-owned corporations, and state-owned enterprises have actively implemented the restructuring project in the spirit of Decision No. 929/QD-TTg of the Prime Minister. The policies and mechanisms on restructuring, arranging, and equitizing state-owned enterprises have been fully issued, creating favorable conditions for enterprises to implement. The operational efficiency of state-owned enterprises after equitization has been gradually improved. The number of enterprises equitized and arranged has met the plan according to the approved restructuring project.

The divestment of non-core investments in five sensitive areas has been vigorously implemented. Corporate governance continues to be innovated, demonstrated through the following stages: Innovation in management of materials and finance; innovation in management of organization; innovation in management of science and technology.

State-owned enterprises need to have many transformations in the new period. Illustrative photo

The Ministry of Finance said that the goal of restructuring state-owned enterprises in the 2016-2020 period is to have a more reasonable structure for state-owned enterprises, focusing on key industries and sectors; providing essential public products and services for society; national defense and security; natural monopoly sectors; applying high technology, making large investments, creating momentum for socio-economic development that enterprises in other economic sectors do not invest in. Improving the efficiency of operations, production and business of enterprises, increasing competitiveness, increasing the rate of return on equity for business enterprises. Carrying out social security tasks, contributing to hunger eradication, poverty reduction, and equitable economic development among regions.

State-owned enterprises invest in the fields of science and technology; operate in strategic sectors and fields, leading and orienting the building of a knowledge-based economy with high technological content, contributing to improving the competitiveness of the entire economy. State-owned enterprises must improve and enhance their management and governance capacity according to international standards; the activities of state-owned enterprises must be managed and monitored closely, publicly, transparently, and equally with enterprises of all economic sectors.

Red River