Deputy Prime Minister Vu Van Ninh has asked ministries to promptly issuepolicies on the reform and restructuring of State-owned enterprises(SOE) as scheduled while rolling out more drastic measures to completethe SOE equitisation plan for 2014-15.
The DeputyPM, who is also Head of the Steering Committee for Enterprise Renovationand Development, made the request while chairing a conference inHanoi on June 25 to review the progress of SOE restructuring in thefirst 6 months of this year.
He requested theMinistry of Planning and Investment submit a draft decision to reviseDecision 37/2014/QD-TTg on criteria and classification of SOEs to thePrime Minister at an early date.
Meanwhile,ministries, localities and State-owned groups and corporations shouldfinish the approval of restructuring plans for 44 firms whose enterprisevalues have been announced while completing the evaluation of thevalues of 127 other enterprises that are in the process of evaluation.
The Deputy PM said stagnation in the issuance ofmechanisms and policies for SOE organisation reform and restructuring isdelaying the restructuring process, adding that many arising problems,especially those related to equitisation, divestment and share auctionsare not addressed quickly.
According to theSteering Committee for Enterprise Renovation and Development, in thefirst 6 months of this year, relevant ministries submitted only three of10 planned draft decrees and decisions, reaching only 37 percent of thetarget.
As of June 23, as many as 289 enterprisessubject to equitisation had set up their own steering committee forrestructuring, with 127 now in the process of evaluating their corporatevalue, 44 already announcing their prices and 61 having completedrestructuring.
Additionally, two firms have beensold, one dissolved and one merged, raising the total number of reformedand equitised enterprises this year to 68.
Hanoihad the highest number of restructured enterprises with 19 firms,followed by the Vietnam Coal-Mining Industries Corporation with fivecompanies and the Central Province of Nghe An with four.
Total State capital divested in the first 6 months of thisyear was 7.52 trillion VND (358 million USD), recouping 11.61 trillionVND (552.8 million USD), equivalent to 1.48 times of book value.
Notably, the military-run Viettel Group divested 2.65 trillion VND(126 million USD) and recouped 3.16 trillion VND (150.4 million USD)while the Vietnam National Shipping Lines recouped 1.25 trillion VND (59million USD) and the Vietnam Post and Telecommunication Group - 783billion VND (37 million USD).
As of June 17, 46equitised firms had conducted their initial public offering (IPO) with557 million shares worth 5.57 trillion VND (265.2 million USD) put onsale. Total shares sold reached 110 million, equivalent to 19.7 percentof the total shares for sale.
At the event,representatives from ministries, localities and enterprises discussedtheir restructuring difficulties, including complicated finances inlarge-scale enterprises. They also pointed to unreasonable auction feesthrough stock exchanges, as well as problems in settling unsolvedshares.
They proposed that enterprises be allowed tofind investors on their own should no investors register to buy thefirms, and to reduce share prices after two unsuccessful auctions.-VNA
The DeputyPM, who is also Head of the Steering Committee for Enterprise Renovationand Development, made the request while chairing a conference inHanoi on June 25 to review the progress of SOE restructuring in thefirst 6 months of this year.
He requested theMinistry of Planning and Investment submit a draft decision to reviseDecision 37/2014/QD-TTg on criteria and classification of SOEs to thePrime Minister at an early date.
Meanwhile,ministries, localities and State-owned groups and corporations shouldfinish the approval of restructuring plans for 44 firms whose enterprisevalues have been announced while completing the evaluation of thevalues of 127 other enterprises that are in the process of evaluation.
The Deputy PM said stagnation in the issuance ofmechanisms and policies for SOE organisation reform and restructuring isdelaying the restructuring process, adding that many arising problems,especially those related to equitisation, divestment and share auctionsare not addressed quickly.
According to theSteering Committee for Enterprise Renovation and Development, in thefirst 6 months of this year, relevant ministries submitted only three of10 planned draft decrees and decisions, reaching only 37 percent of thetarget.
As of June 23, as many as 289 enterprisessubject to equitisation had set up their own steering committee forrestructuring, with 127 now in the process of evaluating their corporatevalue, 44 already announcing their prices and 61 having completedrestructuring.
Additionally, two firms have beensold, one dissolved and one merged, raising the total number of reformedand equitised enterprises this year to 68.
Hanoihad the highest number of restructured enterprises with 19 firms,followed by the Vietnam Coal-Mining Industries Corporation with fivecompanies and the Central Province of Nghe An with four.
Total State capital divested in the first 6 months of thisyear was 7.52 trillion VND (358 million USD), recouping 11.61 trillionVND (552.8 million USD), equivalent to 1.48 times of book value.
Notably, the military-run Viettel Group divested 2.65 trillion VND(126 million USD) and recouped 3.16 trillion VND (150.4 million USD)while the Vietnam National Shipping Lines recouped 1.25 trillion VND (59million USD) and the Vietnam Post and Telecommunication Group - 783billion VND (37 million USD).
As of June 17, 46equitised firms had conducted their initial public offering (IPO) with557 million shares worth 5.57 trillion VND (265.2 million USD) put onsale. Total shares sold reached 110 million, equivalent to 19.7 percentof the total shares for sale.
At the event,representatives from ministries, localities and enterprises discussedtheir restructuring difficulties, including complicated finances inlarge-scale enterprises. They also pointed to unreasonable auction feesthrough stock exchanges, as well as problems in settling unsolvedshares.
They proposed that enterprises be allowed tofind investors on their own should no investors register to buy thefirms, and to reduce share prices after two unsuccessful auctions.-VNA
