Comprehensive restructuring of 16 state-owned enterprises under the Ministry of Construction

On the afternoon of February 6, at the Government Headquarters, Deputy Prime Minister Vuong Dinh Hue, Head of the Steering Committee for Enterprise Innovation and Development, chaired a meeting with ministries and branches on the plan to reorganize State-owned enterprises and enterprises with State capital contributed by the Ministry of Construction as the owner representative for the period 2016-2020.

Deputy Prime Minister Vuong Dinh Hue chaired a meeting with ministries and branches on plans to reorganize state-owned enterprises. (Source: baochinhphu.vn)

Minister of Construction Pham Hong Ha said that in the 2016-2020 period, the Ministry will continue to comprehensively restructure 16 enterprises (including 12 corporations and joint stock companies and four corporations and single-member limited liability companies), focusing on completing equitization and continuing to divest capital according to a reasonable roadmap.

These enterprises include DIC Corporation, Song Hong, Bach Dang, Viglacera, Viwaseen, Hanoi Construction, Licogi, Lilama, CC1, FICO, VNCC, COMA, HUD, Song Da, IDICO and VICEM. Of which, 12 enterprises have been equitized by the Ministry of Construction, the remaining four enterprises, Song Da, IDICO, HUD, and VICEM, have been newly added according to Decision No. 58/2016/QD-TTg of the Prime Minister on criteria for classifying State-owned enterprises, enterprises with State capital and the List of State-owned enterprises to be restructured in the period 2016-2020.

The Minister of Construction said that 16 enterprises under the Ministry hold very large assets, large areas of land with hundreds of thousands of workers, and the Ministry will seriously implement the equitization policy in Decision No. 58 of the Prime Minister.

Specifically, the Ministry of Construction proposed to maintain the current State capital ratio at Licogi Corporation and transfer it to the State Capital Investment Corporation (SCIC) from the first quarter of 2017; the group of 10 corporations and joint stock companies that need time to complete equitization and finalize State capital will divest capital to 36% or the State will not hold it and transfer it to SCIC or a specialized agency to represent State capital ownership in 2018-2019; the group of five corporations (Lilama, VICEM, Song Da, Viglacera, HUD) that hold large assets or have participated in the construction of important national projects will divest capital so that the State will hold a controlling 51% until the end of 2020, from 2021 they will continue to divest according to regulations and transfer the right to represent State capital ownership.

The Ministry of Construction also continues to direct corporations to divest State capital in subsidiaries and affiliates in 170 categories in the next four years.

Minister Pham Hong Ha also proposed that the Prime Minister hand over Ha Long Cement Joint Stock Company and Song Thao Cement Joint Stock Company to VICEM as joint stock companies, and issue additional shares to increase the company's charter capital when these two enterprises are starting to make a profit.

Commenting on the plan of the Ministry of Construction, leaders of the Ministries of Finance, Planning and Investment, Home Affairs, Labor, War Invalids and Social Affairs, and the Government Office agreed with the policy of seriously and fully implementing the Government's policy of arranging and innovating State-owned enterprises, especially Decision No. 58 of the Prime Minister.

In agreement with the opinions of ministries and branches, Deputy Prime Minister Vuong Dinh Hue requested the Ministry of Construction to complete the roadmap for divestment and transfer of State ownership representative rights in enterprises in full and in accordance with the Government's policy, in order to maximize the State's interests. However, for 10 corporations and joint stock companies, the Ministry of Construction must sell all State capital by 2018; any enterprise still holding 36% of capital must report to the Prime Minister. For the group of five corporations, by 2019 at the latest, they must divest less than 51%.

Regarding the two Cement Joint Stock Companies Song Thao and Ha Long, Deputy Prime Minister Vuong Dinh Hue agreed to transfer them to VICEM as proposed by the Ministry of Construction and the opinions of relevant ministries, and noted that it is necessary to specifically calculate and submit to competent authorities for approval the issuance of additional shares and increase of charter capital for these two companies.

The Government leader also requested the Ministry of Construction to review and urge enterprises that have already had IPOs to list on the stock market in accordance with regulations; coordinate with the Ministry of Finance and the Ministry of Planning and Investment to strengthen enterprise management in terms of personnel work, land management, personnel rearrangement, surplus labor, and thoroughly resolve problems related to equitization to ensure the interests of the State. The Ministry of Construction controls the equitization of subsidiaries of corporations to closely manage the plan to sell State capital./.

According to Vietnam+