State to hold 100% capital in MoF units
State to hold 100% capital in MoF units
The State will still hold 100 per cent capital in State Capital Investment Company, Debts and Assets Trading Company, Vietnam Securities Depository Centre, and Vietnam Lottery Company.
This was stated in a recently issued Prime Minister's instruction on the restructuring and renovation of 100 per cent State-owned enterprises (SOEs), which are under the Ministry of Finance, during 2016-20.
The Prime Minister has so far also approved the equitisation plans of 19 out of 23 ministries, agencies, cities, provinces, and State-owned economic groups that have submitted their plans to him.
According to the Ministry of Finance, the country plans to equitise 289 SOEs this year. However, by the end of the first quarter, only 27 SOEs had launched their Initial Public Offerings and had withdrawn capital from non-core businesses.
According to experts, the reason for the slow progress of equitisation is that the period between the end of 2014 and early 2015 was the time that enterprises had to complete production and business plans to ensure income generation and solve other issues after one year of operation.
Besides, they said, the equitised enterprises are large and important corporations and economic groups, so their financial issues are complicated and will require more time to resolve.
The low percentage of the shares sold to investors are has not matched their market demand, they added.
To speed up the SOE equitisation, experts said that the Enterprise Reform and Development Steering Committee and ministries concerned with the equitisation of SOEs should complete mechanisms and policies needed to support and solve difficulties that come up in the equitisation process, besides supervising the enterprises in the process.
