SOE equitisation goal reached, but quality still an issue
SOE equitisation goal reached, but quality still an issue
As the Government urges to streamlines the operation of State-owned enterprises (SOEs), the target can be attained in terms of quantity. However, there are doubts about the quality of most businesses after equitisation.
Prime Minister Nguyen Tan Dung has approved restructuring proposals of 20 corporations as of July; additionally, 55 companies were equitised and 15 others were merged in the first seven months of this year.
The equitisation target of 432 businesses by the end of next year was achievable, said the Enterprise Reform and Development Commission.
The pace of equitisation was positive at the Ministry of Transportation, the Viet Nam National Textile and Garment Group (Vinatex) and Viet Nam National Shipping Lines.
The State divestment reached almost VND3 trillion (US$141.5 million) in the first seven months, increasing by three times compared to last year but still lower than expected.
The Prime Minister asked SOEs to focus on organising their personnel.
"If business leaders cannot fulfill their obligations, they may think of voluntary resignation," he said.
So far this year 21 SOEs have finished their IPOs, yet only seven succeeded in selling all the shares they offered, according to ttvn.vn.
State ownership in ten of the 21 enterprises remained above 90 per cent, including Ha Noi Construction, Viet Nam Water and Environment Investment, Quang Ninh Port and Viet Nam Motors Industry. IPOs at these firms merely satisfied the goal of transferring limited liability status firms into joint stock companies.
Nguyen Hoang Hai, General Secretary of the Viet Nam Association of Financial Investors, said, "Large investors don't want to hold a minor stake in these companies, so they lose interest due to what is currently happening in the IPO process."
Meanwhile, foreign ownership in some large listed firms has reached its limit, so foreign investors are putting their hopes on IPOs of enterprises that are soon to be launched, such as Vietnam Airlines, Mobifone, Vinatex, Airports Corporation of Viet Nam, Viet Nam Railways and Binh Son Refining and Petrochemical Co Ltd, according to a VinaCapital report.
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