PM demands greater effort in SOE equitisation process
11:26, 2015/04/14
Prime Minister Nguyen Tan Dung has requested authorised agencies to employ far-reaching measures to ensure that the equitisation of 289 State-owned enterprises (SOEs) is completed within 2015.
He demanded that the equitisation of 126 SOEs, whose value is currently being assessed, be completed in the third quarter of the year, while the 52 firms already valued must be made available to investors and partly sold in Q2. The partial privatisation of the 82 others must be completed in Q4.
The Cabinet leader said the process must ensure the mutual benefits of the State, company employees, and shareholders. He demanded the divestment of State capital from non-core businesses be hastened and asked the Ministry of Finance to guide the settlement of business value assessment bottlenecks.
The equitisation, which sees private investors take large stakes in former SOEs while the state retains some shareholding, is part of the economic restructuring scheme from 2011-15 outlined by a National Assembly resolution. It aims to make the companies more efficient and profitable. Public investment and the country’s banking system are also undergoing significant restructuring.
According to the PM, ministers, State agency leaders, Chairpersons of the provincial and municipal People’s Committees and economic group chiefs must be held accountable for the outcomes of the restructuring, equitisation and divestment of SOEs under their management. He said they must strictly deal with executives who fail to work effectively and address any obstacles by liaising with the Ministry of Finance, the Ministry of Planning and Investment, the Steering Committee for Business Renovation and Development and other authorised agencies.
According to the Steering Committee, 143 SOEs were equitised in 2014, well below the set target of 200. As many as 432 SOEs were subjected to restructuring in 2014 and 2015.
Vietnam has divested approximately 5 trillion VND (over 238 million USD) of State capital from SOEs, gaining nearly 7 trillion VND (333.33 million USD) in total revenue, with 45 percent coming from the real estate sector.
The Cabinet leader said the process must ensure the mutual benefits of the State, company employees, and shareholders. He demanded the divestment of State capital from non-core businesses be hastened and asked the Ministry of Finance to guide the settlement of business value assessment bottlenecks.
The equitisation, which sees private investors take large stakes in former SOEs while the state retains some shareholding, is part of the economic restructuring scheme from 2011-15 outlined by a National Assembly resolution. It aims to make the companies more efficient and profitable. Public investment and the country’s banking system are also undergoing significant restructuring.
Illustrative image
|
According to the Steering Committee, 143 SOEs were equitised in 2014, well below the set target of 200. As many as 432 SOEs were subjected to restructuring in 2014 and 2015.
Vietnam has divested approximately 5 trillion VND (over 238 million USD) of State capital from SOEs, gaining nearly 7 trillion VND (333.33 million USD) in total revenue, with 45 percent coming from the real estate sector.
17:51, 2025/01/07
Vietnam prioritizes agriculture and renewable energy for access to green loans
The move is part of the government’s effort to accelerate economic restructuring and build resilience to climate change while protecting the environment.
16:49, 2025/01/06
Vietnam GDP expands by 7.09% in 2024
The 2024 growth rate is considered positive amidst global uncertainties and domestic challenges such as natural disasters.
14:39, 2025/01/04
Vietnam stock market set to accelerate in 2025: Experts
Stable macroeconomic fundamentals, ongoing institutional reforms, and favorable monetary policies will be positive for corporate earnings.
16:31, 2025/01/02
Vietnam stock market aims for emerging status by 2025: Finance minister
By the end of 2024, the benchmark VN-Index reached 1,266.78 points, up 12.11% from 2023.
15:33, 2025/01/02
Vietnam set to extend VAT cut for six months
This measure is expected to accelerate the recovery of production and business activities, which will ultimately benefit the state budget and the economy as a whole.
21:29, 2024/12/31
Vietnam’s credit growth projected to expand by 16% in 2025
Growth must put operational safety first, and channel credit to productive business sectors, priority areas, and growth-driving industries.
- Regional, international financial centers mean boosters to Vietnamese economy: Deputy PM
- IFC sets record with US$1.6 in climate financing to support Vietnam’s green transition
- Vietnam's credit growth up 10% in 10 months
- Building Hanoi's smart city with smart banking
- Vietnam stock market clears major legal hurdle to potential upgrade
- Cashless parking in Hanoi: Good model fuels smart transport