Prime Minister requests drastic restructuring of state-owned enterprises

The Prime Minister requested ministries, branches, localities, economic groups, and state-owned corporations to direct the promotion of production and business to achieve and exceed the 2014 plan, while at the same time comprehensively restructuring enterprises, from organizational models, management, production and business sectors, development strategies, investment, human resources, markets, etc.

In addition, continue to thoroughly understand the viewpoints, goals, tasks, and roadmap for equitization and state capital divestment in 2014 - 2015. Consider this a key political task that needs to be urgently and resolutely completed.

Ministries, sectors, localities, economic groups, and state-owned corporations with low equitization and divestment results need to seriously learn from experience, determine the responsibilities of organizations and individuals, and take appropriate measures to overcome them, contributing to the completion of the common goal.

Early approval of equitization plan

The Prime Minister requested ministries, localities, economic groups, and state-owned corporations to closely follow the restructuring plan and state-owned enterprise arrangement plan approved by the Prime Minister, and to resolutely, closely, and urgently direct the tasks of equitization and state capital divestment.

The provinces of Kon Tum, Gia Lai, Dak Lak, Binh Duong, Binh Phuoc, Thanh Hoa, Tuyen Quang, Quang Ngai, Phu Tho, Ben Tre... must immediately establish a Steering Committee for equitization of enterprises that do not have a Steering Committee and deploy the determination of enterprise value; strive to announce enterprise value and approve the equitization plan in the third quarter of 2015.

The provinces and cities of An Giang, Bac Giang, Bac Ninh, Binh Thuan, Dong Nai, Dong Thap, Hanoi, Lang Son, Lam Dong, Lao Cai, Yen Bai, Long An, Quang Ninh, Tien Giang, Thai Binh, Thai Nguyen... direct the established Steering Committees for equitization to organize the determination of enterprise value, and strive to announce the enterprise value and approve the equitization plan in the first quarter of 2015.

The Prime Minister requested ministries, branches, localities, economic groups, and state-owned corporations to direct enterprises that are determining their value to announce their enterprise value by the third quarter of 2014 and approve their equitization plans by the end of the fourth quarter of 2014.

Enterprises that are eligible shall carry out equitization (IPO) according to current regulations. Enterprises that are not eligible for immediate IPO shall be transformed into joint stock companies with shareholders being the State, the State Capital Investment Corporation, trade unions, employees, strategic shareholders (if any) or other voluntary shareholders in order to change the legal form of the enterprise, diversify ownership, contribute to democratizing business, and create goods ready for the market. In the third quarter of 2014, the Ministry of Finance shall take the lead in guiding the implementation of this content.

To closely link the equitization process of state-owned enterprises with listing on the stock market, it is necessary to specify the time for listing on the stock market in the decision approving the equitization plan of each enterprise; the divestment of state capital in enterprises must be carried out closely, with a plan, according to a roadmap, ensuring market principles, publicity, transparency and efficiency.

The Prime Minister requested the State Bank of Vietnam to urgently report to the Prime Minister a plan to handle investments of corporations and general companies in financial companies and commercial banks in conjunction with restructuring commercial banks to ensure overall efficiency.

Continue to review and supplement enterprises that need to be equitized

Ministries, localities and economic groups shall, based on the criteria and list of classification of state-owned enterprises issued in Decision No. 37/2014/QD-TTg dated June 18, 2014 of the Prime Minister, review and supplement enterprises that need to be equitized, divest state capital and the implementation roadmap, and submit them to the Prime Minister for approval in the third quarter of 2014 for implementation.

For some enterprises operating in public service sectors such as urban environment, water supply and drainage, if domestic investors want to hold the majority of charter capital, it is encouraged, on condition that the enterprise commits to providing good public service to the people.

According to the report of the Steering Committee for Enterprise Innovation and Development, the equitization results in the first months of the year are assessed as positive, showing that the goal of equitizing the remaining 432 state-owned enterprises from now until the end of 2015 is achievable.

By the end of July, the Prime Minister had approved all 20 restructuring projects of State-owned corporations and groups under the Prime Minister's authority. The country had restructured 76 enterprises, of which 55 were equitized, 2 were dissolved, 1 was sold, 15 were merged and 3 were proposed for bankruptcy.

Also in the first 7 months of the year, divestment activities reached 2,975 billion VND, 3 times higher than the whole year of 2013, but compared to the amount of capital needed to be divested, the progress is still slow.

According to chinhphu.vn