Illustrative photo (Source: VNA)Hanoi (VNA) – A forum on accelerating the process of reforming and improving theefficiency of state-owned enterprises (SOEs) was held by “Tap chi Kinh Te va DuBao” (the Journal of Economics and Forecasting) in Hanoi on November 6.
Some 74 SOEs have beenequitised in Vietnam since 2016, generating trillions of VND for the Statebudget, said Dang Quyet Tien, Director of the Ministry of Finance’s Departmentof Corporate Finance. After equitisation, many of them have gone on to furtherdevelop their reputation, he added.
At the same time, theofficial underlined problems such as lengthy delays in the equitisation of manyother SOEs and uneven improvement in the performance of equitised firms. Henoted that the operational efficiency and profitability of many SOEs are still relativelylower than those in private sector.
Deputy Minister ofInvestment and Planning Nguyen Van Hieu said over the past two decades, thecountry has seen a sharp decline in the number of SOEs, from 12,000 in the early1990s to about 500 at present.
While these companiesoften manage a large volume of State-owned assets, their business results andcontributions to the State budget have not matched the resources they own, hesaid, noting that many of the SOEs’ projects have actually suffered big losses.
In the time ahead,equitisation and divestment remain top priorities for the restructuring of SOEs,particularly the equitisation of corporations in the fields of mining,chemicals, and post and telecommunications. In the era of the Fourth IndustrialRevolution and with the establishment of the Committee for State CapitalManagement, there is lots of work to be done to reform and improve theefficiency of SOEs, Hieu said.
He emphasised thatSOEs must ensure they maintain accuracy and transparency in informationdisclosure and debt issues to attract investors.
Pham Duc Trung fromthe Central Institute for Economic Management recommended that SOEs improve theirmanagement mechanisms by applying international corporate governance practicesand enhancing the efficiency of investment in State capital.
By 2020, the number ofSOEs is expected to drop to about 100. The Government approved the equitisationplans of 136 SOEs for the 2016-2020 period, including big names like VietnamRubber Group.
In the last threeyears, Vietnam has earned 198 trillion VND (8.49 billion USD) from the divestmentand equitisation of SOEs, which included the record 110 trillion VND (4.71 billionUSD) generated from the divestment of leading brewery Sabeco. –VNA
VNA
