PM Nguyen Xuan Phuc at the conference (Source: VGP)Hanoi (VNA) – The reshuffle and reform ofState-owned enterprises (SOEs) must be considered the most important task of2017, underscored Prime Minister Nguyen Xuan Phuc at a national conference onSOEs rearrangement and reform on December 6.
The PM noted that 350 firms equitised in 2015 have operatedeffectively with their pre-tax profit rising 49 percent, budget payment increasing72 percent and employees’ income up 33 percent.
He stressed the need to make proper roadmap and methods for theequitisasion of SOEs for better business management as well as healthier, moretransparent and equal business environment, creating favourable conditions forthe growth of private businesses. Effective equitisasion also help reducecorruption, he said.
PM Phuc pointed to group interest as the largest obstaclehindering the progress of the equitisasion process.
Regarding orientations for 2017, the PM said that it iscrucial to define sectors in which the State needs to keep control and sectors eligiblefor equitisasion. He affirmed that the State should play a core role in publicservices and a number of areas of State’s responsibility, while withdrawingentirely or partly from the remaining fields.
The most important objective of the reshuffle and equitisasionof State-owned firms is to ensure the highest interest of the State, heunderscored, adding that it is necessary to invite prestigious internationaladvisors to join the process in order to achieve this goal.
He also urged enterprises to hire experts for the evaluationof their value, debt settlement and share selling, thus ensuring Stateinterest.
According to the report of the Steering Committee forBusiness Renovation and Development, the number of State-owned enterprises(SOEs) has reduced remarkably over the past 15 years, from 6,000 to 718 as ofOctober this year.
From 2011 to 2015, 591 SOEs have been equitised, or 96percent of the target. Most of the equitised establishments thrive. The totalState-owned capital in those enterprises rose from 810 trillion VND beforeequitisation to 1,234 trillion VND.
However, the rearrangement and restructuring of SOEs isslower than expectation, and SOEs’ performance has not matched the resourcesthat they hold.
Tran Quang Nghi, Chairman of the Management Board of theVietnam National Textile and Garment (Vinatex) admitted that the delay in SOEsequitisation is attributable to a lack of resolve on the part of theenterprises themselves.
Participants shared the view that it is necessary to speedup equitisation among the parent groups to step up the process at affiliatedcompanies.
The conference was held to review the equitisation,restructuring and reform of State-owned enterprises from 2011-2015 and seekmeasures to promote the process in the next five years./.
VNA
