Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Industry
Speedier privatization process of state firms - a key for social advancement
Ngoc Mai 14:36, 2021/05/13
During the 2016-2020 period, only 39 were sold on the Government's list of 128 must-be-privatized SOEs in 2020, meeting just 30% of the target.

A speedier privatization process of state-owned enterprises (SOEs) would be key to boost their efficiency, in turn contributing to economic development, social advancement and equality.

 Production of animal feed at Masan Group's subsidiary. Photo: Trong Tung

The Ministry of Finance (MoF) made the view clear as it referred to the ongoing process of drafting a legal framework for SOEs restructuring process in the 2021-2025 period.

During the 2016-2020 period, only 39 were sold on the Government's list of 128 must-be-privatized SOEs in 2020, meeting just 30% of the target.

Among the remaining SOEs that are required for privatization, those in Hanoi and Ho Chi Minh City make up 54% of the total, including 13 in the capital city and 38 in the country’s southern hub. The others include six managed by the Committee for State Capital Management (CSCM), four under the Ministry of Industry and Trade (MoIT), and two under the Ministry of Construction (MoC).

The MoF expressed concern that none in the list has made significant progress in the privatization process during the first four months of this year, while SOEs have divested a total VND286.6 billion (US$12.37 million) in book value for VND2.16 trillion (US$93.3 million) in proceeds in January-April.

The ministry attributed the slow progress in privatization and divestment of SOEs to the Covid-19 pandemic, as well as a lack of commitment from localities and SOEs in complying with the PM’s instruction for SOE restructuring.

To further speed up the privatization process, the MoF urged SOEs under the list to review their restructuring processes and identifies difficulties in privatization and state capital divestment.

“The focus should be to deal with 12 loss-making projects formerly under the administration of the Ministry of Industry and Trade,” noted the MoF. As of last October, total accumulated losses of 12 projects had reached VND26.3 trillion (US$1.14 billion).

According to the MoF, state firms are requested to list share on the stock market following the completion of the privatization process.

“Leaders at SOEs having not gone public would be subject to disciplinary measures,” noted the ministry.

According to the MoF, some large SOEs are facing difficulties in business valuation, including Vietnam Posts and Telecommunications Group (VNPT), Vietnam National Chemical Group, Vietnam National Coal – Mineral Industries, MobiFone, and Vietnam Bank for Agriculture and Rural Development (Agribank).

TAG: Vietnam privatization Covid-19 pandemic divestment state capital SOEs state-owned enterprises
Other news
22:29, 2023/09/29
Vietnam's GDP growth expands by 4.24% in a 9-month period
The country’s economic growth hit 5.33% year-on-year in the third quarter.
21:23, 2023/09/28
Hanoi encourages semiconductor investment
Hanoi takes a selective approach to attracting investment, prioritizing projects in high-tech, clean-tech, and environmentally friendly sectors.
21:29, 2023/09/26
Hanoi, Shanghai businesses agree to build high-tech complexes
Both Hanoi and Shanghai expect to lure more tech developers to the city.
11:18, 2023/09/21
Vietnam needs policies to promote industrialization: Japanese professor
Japan's contributions have helped Vietnam maintain a stable growth trajectory, driven by the far-reaching effects of FDI.
16:48, 2023/09/20
Vietnam-US semiconductor cooperation significant to bilateral relations
In the long term, US businesses and corporations may explore the feasibility of setting up semiconductor chip manufacturing facilities in Vietnam.
21:52, 2023/09/18
Hanoi seeks to co-operate with Lai Chau on tourism
Hanoi will strengthen the development of cooperative tourism programs with provinces and cities in the South, Central Highlands and Central regions by the end of 2023 to bring visitors to the city.