Only 6 enterprises completed equitization in six months

The slow equitization process has forced the number of units to complete for the year to reach 40, still 5 enterprises less than planned.

On July 11, Deputy Prime Minister Vuong Dinh Hue - Head of the Steering Committee for Enterprise Innovation and Development chaired a meeting to review the first 6 months of work on equitization and divestment of state-owned enterprises.

Assessing the work of restructuring, equitization and divestment of State capital in enterprises in the first half of the year, Deputy Prime Minister Vuong Dinh Hue pointed out the cautious mentality, fear of some previous cases being inspected and audited, so "the matter is under the authority of the Ministry and locality but they do not dare to decide, bring the matter to the Government to ask for opinions for safety". This is also part of the reason why this process is sluggish, not meeting requirements and goals.

"Experience shows that whichever ministry is decisive, there will be good changes. Where the leadership is not decisive, work will stagnate and results will be very limited," the Deputy Prime Minister emphasized.

Deputy Prime Minister Vuong Dinh Hue said that any unit whose leadership does not resolutely direct the equitization of enterprises will have very limited results. Photo: VGP

Reporting at the meeting, Deputy Head of the Government Office Le Manh Ha - Deputy Head of the Steering Committee said that only 6 enterprises completed equitization in the first 6 months of the year, 14 enterprises are developing plans to submit to competent authorities for approval. Of whichThere are enterprises with very large equity capital such as 3 member enterprises of Vietnam Oil and Gas Group (PetroVietnam) with total equity value of nearly 90,000 billion VND, or a unit of Vietnam Electricity Group (EVN) with equity capital of 24,000 billion VND. "The whole year will complete equitization of 40 enterprises, 5 units less than planned", said Mr. Le Manh Ha.

Regarding the sale of State capital, divestment has been completed at 22 enterprises with a total book value of more than VND666 billion and revenue of over VND11,589 billion. Six of these units divested below par value.

The Deputy Prime Minister said that if from now until the end of the year a large enterprise is successfully equitized, the capitalization rate of ownership conversion will be very large, creating good governance.Therefore, he requested that the equitization and divestment plan of 2017 must be completed.

The Government leader requested ministries and localities to "follow the law and ensure transparency. If the law is inadequate, it must be amended, but if it is still in effect, it cannot be done wrongly, not following conventions, and ensuring national interests."

Along with that,The Government will consider the responsibility of leaders of ministries, branches, localities, corporations, and general companies who are late and fail to complete the task of innovating, restructuring, equitizing, and divesting enterprises.

To overcome institutional shortcomings, the Head of the Steering Committee for Enterprise Innovation requested the Ministry of Finance to submit to the Prime Minister for signing and promulgating a Decree amending Decree No. 59 on converting 100% State-owned enterprises into joint stock companies in July; and to complete amendments and supplements to Decree No. 91 on State capital investment and management of State capital assets in enterprises in August.

Also in August, the Ministry of Planning and Investment submitted to the Prime Minister for signing a Decision on the list of state-owned enterprises to divest capital in the 2017-2020 period...

Corporations and general companies must submit their equitization plans no later than July for the Prime Minister to approve in August 2017./.

According to VNE