Hanoi ensures transparency of SOE privatization

13:00 | 12/04/2022 Society

(VEN) - The capital city of Hanoi is proposing to shelve privatization plans for certain state-owned enterprises (SOEs), citing the important public services and products they supply.

Hanoi will focus on developing land use plans after equitization

Profitable SOEs

Wholly state-owned enterprises operate mainly in supplying public services, such as water supply and drainage, urban lighting, irrigation, environmental sanitation, as well as social and community services, such as education, health care, culture, sports, and more. According to the Hanoi City People's Committee, in the 2016-2020 period, pre-tax profits of local SOEs reached VND8.654 trillion.

Regarding the restructuring and equitization of Hanoi’s SOEs in the 2016-2021 period, Hanoi People's Committee Chair Chu Ngoc Anh said these enterprises will be allowed to handle their existing debts, finances and assets. In addition, Hanoi will develop plans on land use after equitization, recovering houses and land that are inefficiently used.

The Vietnamese government planned to restructure its economy through privatizing SOEs by equitizing and divesting state capital in more than 100 enterprises by 2020.

However, SOE equitization and divestment remains slow due to unresolved problems related to finance, property and land. Mechanisms and policies on equitization and divestment also encounter difficulties when applied in practice.

Roadmaps for each SOE

By early 2022, Hanoi had 27 enterprises with 100 percent state capital and total equity of more than VND22 trillion, and 29 other enterprises with some state capital investment.

Chu Ngoc Anh said the city would continue to carry out the reorganization and divestment tasks for the 2021-2025 period after thoroughly resolving the shortcomings that emerged in the 2016-2020 period. Specifically, it will develop plans and roadmaps for each enterprise, ensuring publicity, transparency, and optimum efficiency.

For enterprises long entangled in financial difficulties and obstacles, especially due to the management and use of housing and land facilities, the city has proposed resolving all their outstanding problems before implementing rearrangement and divestment in the 2021-2025 period.

The city will also review resources and overall capacity of enterprises, especially their land resources, in order to use the land efficiently and avoid waste.

Hanoi People’s Committee Chair Chu Ngoc Anh:

As the capital of the country, Hanoi needs to hold 100 percent of the charter capital of businesses providing

public goods and services in order to serve political tasks. Therefore, the city proposes that these SOEs will

not be equitized and divested.

Nguyen Hanh