SOE equitization yields state funds

09:08 | 03/01/2019 Companies

(VEN) - The total amount of state capital withdrawals from SOEs through equitization in the 2016-2018 period was 2.5 times higher compared with the 2011-2015 period. 

Photo: Le Chi

The figures were presented at a recent conference in Hanoi on measures to enhance the efficiency of state-owned enterprises (SOEs).

From 12,000 to 600

Prime Minister (PM) Nguyen Xuan Phuc, addressing participants, said the reorganization of SOEs has yielded significant results, contributing to macroeconomic stability and creating more income for the state budget. “Reducing the number of SOEs from 12,000 to 600 has been a success,” he said.

PM Phuc emphasized that dealing with violations of the law and regulations is necessary but should not create hindrances to SOE development. He said the government would maintain a fair and transparent business environment and minimize institutional barriers to business development. The PM also spoke about the fact that some SOE leaders still worry that equitization will harm their interests, and indicated the need to change their thinking.

The PM said that in the future, even efficient SOEs would be equitized to help them mobilize capital and improve management capability, contributing to corruption prevention efforts.

Implementation manner is important

Deputy Prime Minister Vuong Dinh Hue and other officials attending the conference all agreed that formulating policy is important, but the way in which it is implemented is no less important.

A representative of the State Capital Investment Corporation (SCIC) said party and state guidelines, viewpoints and policies have never been as clear as they are now, making them easier to implement.

Deputy Minister of Industry and Trade Dang Hoang An said the losses caused by 12 projects in the industry and trade sector were an important lesson, and from now on the Ministry would impose responsibility for the stagnation of SOE equitization on the heads of the companies. He added that SOEs must consider profitability and the development of their capital resources as major objectives.

Pham Viet Thanh, Secretary of the Communist Party Committee of the Central Business Bloc, highlighted the importance of internal auditing for SOEs. He proposed greater business input into the contents of legal documents and the establishment of state facilities to train business leaders.

Following the conference, PM Phuc issued an instruction to promote the reorganization and improve the efficiency of

SOEs, focusing on groups and corporations.

Quang Lộc