The State holds 100% of capital and controlling shares in key areas.

(Baonghean.vn) - This afternoon, December 6, under the chairmanship of Prime Minister Nguyen Xuan Phuc, the Government held a national online conference to deploy the work of restructuring and innovating state-owned enterprises in the 2016-2020 period.

Comrade Huynh Thanh Dien - Vice Chairman of the People's Committee chaired at Nghe An bridge point.

The Prime Minister gave a speech at the conference.

Speaking at the opening of the conference, the Prime Minister emphasized two contents that need to be focused on to clarify why the divestment of state capital in enterprises and equitization have been low; what is the best solution for divestment of state capital and equitization (ensuring social mobilization and the best benefits after equitization).

The report of the Steering Committee for State Enterprise Reform shows that in the period 2011-2015, implementing the overall project on restructuring and reforming state-owned enterprises approved by the Prime Minister, ministries, branches, localities, economic groups and state corporations have restructured 591 enterprises, reaching 96% of the plan.

Up to now, after 15 years of restructuring, the number of SOEs has decreased sharply, especially small-scale enterprises, inefficient enterprises, enterprises in fields that the State does not need to hold. In 2001, the whole country had about 6,000 SOEs, spread over 60 industries and fields. By 2011, there were 1,369 SOEs, but by the end of October 2016, there were only 718 SOEs, concentrated in 19 industries and fields.

The majority of SOEs are medium and large in size, with a significant decrease in number but an increase in capacity and scale. Although their number accounts for a very small proportion of the business sector (about 0.67%), SOEs still contribute significantly to the budget, making the largest contribution to GDP (SOEs 28.8%, non-state 11.8%, FDI 17.9%).

A representative of the State Capital Investment Corporation (SCIC) said it is necessary to create a level playing field for businesses.

Speaking at the online conference, a representative of the State Capital Investment Corporation (SCIC) proposed creating an environment for SOEs to operate and compete equally with enterprises in other economic sectors; allowing SOEs to do things that are not prohibited by law.

In particular, when reviewing and evaluating the effectiveness of SOEs, inspection, examination and auditing agencies need to evaluate the overall activities of SOEs (whether they are effective or risky) to ensure that SOE leaders increase their dynamism, decisiveness and promptly seize opportunities in production and business.

Mr. Tran Quang Nghi, Chairman of the Board of Directors of the Textile and Garment Group, said that when equitizing corporations and state-owned companies, if the parent company is equitized first, then the subsidiary company, the progress will be faster... However, when selling, it is necessary to clearly identify strategic investors who are passionate about the industry, must invest with both mind and heart, not speculative investment,... only then can the enterprise after equitization develop sustainably and protect the rights of workers.

At Nghe An bridge point.

In Nghe An, the Prime Minister issued Official Letter No. 321/TTg - DMDN (2016) on the overall plan to reorganize and innovate agricultural and forestry companies under the current Provincial People's Committee. Accordingly, it will maintain, consolidate, develop and restructure the State-owned single-member LLC with 100% charter capital to perform the task of producing and supplying public products and services for the following companies: Song Hieu Forestry Industry Single-member LLC; Tuong Duong Forestry One-member LLC; Con Cuong Forestry One-member LLC; Do Luong Forestry One-member LLC. Equitize Nghe An Tea Investment and Development Single-member LLC; Nghe An Coffee Rubber One-member LLC; 3/2 Agricultural Industry One-member LLC.

Implement the original contribution of assets, finance, labor, and land to establish a limited liability company with two or more members for 1/5 Agriculture One Member LLC; Xuan Thanh Agriculture One Member LLC; An Ngai Agriculture One Member LLC. Convert into a protective forest management board operating under the mechanism of a public service unit with revenue and merge with the Quynh Luu Protective Forest Management Board for Quynh Luu Forestry One Member LLC.

Rubber garden of An Ngai - Tan Ky Agricultural Company. Photo courtesy

Currently, Nghe An has 10 state-owned joint stock companies that are allowed by the Government to remain as representatives of state capital ownership in enterprises. Nghe An has 6 remaining enterprises in which the state does not need to hold shares, and has so far completed divestment in 4 enterprises.

To implement the equitization plan for the period 2011-2015 according to the project approved by the Government, in 2014, the Provincial People's Committee issued a decision to equitize 6 single-member limited liability companies in which the State holds more than 51% of the charter capital. Up to now, 5 units have completed the equitization and held their first General Meeting of Shareholders.

The province will equitize 3 enterprises, including: Nghe An Tea Investment and Development Company Limited; Nghe An Coffee and Rubber Company Limited and 3/2 Agricultural Industry Company Limited. Currently, the enterprise is reviewing land allocation contracts, determining the amount of unused land area to transfer to local management.

Prime Minister Nguyen Xuan Phuc concluded the conference. Photo: Baochinhphu.vn

Concluding the conference, Prime Minister Nguyen Xuan Phuc emphasized that in recent times, the Government, the Prime Minister, ministries, branches, localities, economic groups, and state-owned corporations have resolutely implemented the restructuring of state-owned enterprises and achieved positive results, basically completing the set goals, tasks, and plans.

Regarding the goals and tasks for the 2016-2020 period, the Prime Minister emphasized that the work of restructuring and innovating state-owned enterprises is extremely important; at the same time, it is required that in order for state-owned enterprises to operate effectively, it is necessary to create a transparent environment, with close supervision and motivation to operate.

The Government has determined that enterprises in which the State holds 100% of capital and controlling shares shall only be maintained in key and essential areas. These enterprises need to improve their capacity, operational efficiency and competitiveness; be open and transparent in their production and business activities; and be equal to enterprises in other economic sectors. Enterprises in which the State does not need to hold 100% of capital or controlling shares must be equitized and divest state capital according to market mechanisms; ensuring openness, transparency, and effectiveness, avoiding loss of state capital and assets.

Thu Huyen