General Director of the Corporate Finance Department Dang Quyet Tien speaks at the event (Source: VNA) Hanoi (VNA) - No State-ownedenterprises (SOEs) gained approval for their equitisation plans in the firstthree months of 2019, according to the Ministry of Finance’s Corporate FinanceDepartment.
Dang Quyet Tien, General Director of the CorporateFinance Department, said at a press conference on March 28 that the lack ofapprovals had slowed the equitisation plan set by the ministry for SOEs underits management.
In 2019, the Ministry of Finance has set a goalto equitise 18 SOEs, plus 41 SOEs left over from 2018 that failed to meet theirtargets.
If the SOEs did not make any progress, theywould likely fail to accomplish their plans on schedule, Tien said.
Factors slowing down the equitisation processinclude the SOEs’ scale of business and assets – which require carefulvaluation to avoid losses for the State budget – and land issues, he toldreporters.
Some of the SOEs had not completed their landuse plans and submitted them to Government agencies, Tien said.
Local authorities should also take responsibilityfor the late equitisation as officials have performed poorly in inspecting andissuing land use certificates for SOEs, leading to delays, he said.
Under Document 991/TTg-DMDN dated July 10, 2017by the Prime Minister, the finance ministry is responsible for pushing theequitisation of 127 SOEs, including 82 that must undergo the process in 2018and 2019.
In 2018, 23 SOEs got approval for theirequtisation plans with total corporate value of 31.7 trillion VND (1.36 billionUSSD), 53 percent of which is State capital.
Total charter capital of the 23 SOEs was 20.3trillion VND, 60 percent of which is State ownership. Those firms sold 2.54trillion VND worth of shares to strategic investors and 5.43 trillion VND worthof shares through initial public offerings (IPOs).
From 2016 to 2018, the Government and itsagencies approved equitisation plans for 159 SOEs with total corporate value of442.3 trillion VND, 46.5 percent of which is State capital.-VNA
Dang Quyet Tien, General Director of the CorporateFinance Department, said at a press conference on March 28 that the lack ofapprovals had slowed the equitisation plan set by the ministry for SOEs underits management.
In 2019, the Ministry of Finance has set a goalto equitise 18 SOEs, plus 41 SOEs left over from 2018 that failed to meet theirtargets.
If the SOEs did not make any progress, theywould likely fail to accomplish their plans on schedule, Tien said.
Factors slowing down the equitisation processinclude the SOEs’ scale of business and assets – which require carefulvaluation to avoid losses for the State budget – and land issues, he toldreporters.
Some of the SOEs had not completed their landuse plans and submitted them to Government agencies, Tien said.
Local authorities should also take responsibilityfor the late equitisation as officials have performed poorly in inspecting andissuing land use certificates for SOEs, leading to delays, he said.
Under Document 991/TTg-DMDN dated July 10, 2017by the Prime Minister, the finance ministry is responsible for pushing theequitisation of 127 SOEs, including 82 that must undergo the process in 2018and 2019.
In 2018, 23 SOEs got approval for theirequtisation plans with total corporate value of 31.7 trillion VND (1.36 billionUSSD), 53 percent of which is State capital.
Total charter capital of the 23 SOEs was 20.3trillion VND, 60 percent of which is State ownership. Those firms sold 2.54trillion VND worth of shares to strategic investors and 5.43 trillion VND worthof shares through initial public offerings (IPOs).
From 2016 to 2018, the Government and itsagencies approved equitisation plans for 159 SOEs with total corporate value of442.3 trillion VND, 46.5 percent of which is State capital.-VNA
VNA
