State capital divestment in 3 companies in Nghe An
In the first 5 months of 2024, the People's Committee of Nghe An province issued a decision to divest state capital in 3 state-owned joint stock companies.
Specifically, these are the companies: Nghe An Waterway and Road Traffic Management and Construction Joint Stock Company, Nghe An Bridge and Road Management and Construction Joint Stock Company, Nghe An Newspaper Printing Joint Stock Company.
These companies were advised by the Department of Finance on the plan. After the Provincial People's Committee made a decision on divestment, the Department of Finance advised the Provincial People's Committee to issue a plan and roadmap for divestment at enterprises and urged and guided enterprises to implement the following contents in the divestment process according to regulations.
Maintain State capital over 51% in 2 companies
The Department of Finance has also advised the Provincial People's Committee to report to the Prime Minister to allow not to divest state capital in the period of 2024-2025 at two companies, Vinh City Green Park Joint Stock Company and Nghe An Urban Environment and Construction Joint Stock Company, due to some objective obstacles that led to the inability to divest capital.
Nghe An Urban Environment and Construction Joint Stock Company was converted from a 100% state-owned LLC to a joint stock company under Decision No. 3073/QD-UBND dated July 3, 2014-UBND of Nghe An province, officially operating as a joint stock company since June 2016. Currently, the charter capital of this company is nearly 37 billion VND; of which state capital is nearly 30 billion VND, accounting for 80.80% of the charter capital.
According to the People's Committee of Nghe An province, this company is currently sweeping and collecting garbage on more than 100 roads, transporting more than 303 tons of garbage per day and night in 378 blocks and hamlets in 25 wards and communes; vacuuming and watering main roads; collecting construction waste, collecting garbage daily to ensure the prevention, control and recovery of storms, natural disasters, environmental sanitation for major holidays; ensuring urban landscape, environment, social security for local people and other public tasks.
The current state capital holding ratio at the company is 80.8%; with a state capital holding ratio of over 65%, it will be enough for the province to decide on issues in the management and operation of the enterprise according to the provisions of Clause 1, Article 148, Law on Enterprises 2020. Therefore, ensuring a state capital ratio of over 65% will give the State enough power to decide on important issues, operations, and promptly carry out urgent tasks at the local level.
In addition, this company is being assigned by the People's Committee of Nghe An province to manage and operate the works at the Nghi Yen - Nghi Loc District Solid Waste Treatment Complex project with a total investment of nearly 115.4 billion VND. This company is also being assigned by the People's Committee of Vinh city to continue to be the investor to implement the project at the Nghi Yen - Nghi Loc District Solid Waste Treatment Complex with a total investment of nearly 15 billion VND. Therefore, with the divestment of State capital at the company to 51%, Nghe An province will not have enough authority to decide on related issues in asset management and operation at the Nghi Yen - Nghi Loc District Solid Waste Treatment Complex.
Regarding Vinh City Green Park Joint Stock Company: Currently, the charter capital of this Company is more than 8 billion VND; of which, the State capital is nearly 5 billion VND, accounting for 55.44% of the charter capital. The State capital holding ratio at the Company is 55.44%, giving the province the right to make decisions on the management and operation of the enterprise according to the provisions of Article 148, Enterprise Law 2020.
The two above mentioned companies currently play an important role in ensuring social security, environmental sanitation, and urban landscape in Vinh City; especially in the context of Vinh City preparing to expand its administrative boundaries.
Converting a public service unit into a joint stock company
In the first 5 months of 2024, the Department of Finance advised the Provincial People's Committee to issue Decisions on converting 2 public service units, namely the Nghe An Road Motor Vehicle Testing Center (under the Department of Transport) and the Cua Lo Town Urban Management Board (under the Cua Lo Town People's Committee) into joint stock companies. After the Provincial People's Committee issued a decision on the conversion, the Department of Finance advised the Provincial People's Committee to issue a Plan and roadmap for converting the 2 units and urged and guided the units to implement the following contents in the process of converting from a public service unit to a joint stock company according to regulations.
The Department of Finance also advised the Provincial People's Committee on not yet equitizing Nghe An Infrastructure Development and Construction Investment Company Limited in the period of 2022-2025 due to difficulties in handing over industrial park infrastructure assets to the management company. Currently, the Department of Finance is reviewing the report contents as requested by the Provincial People's Committee regarding the above content.