12:10 | 09/10/2016 Finance - Banking
(VEN) - The equitization of state-owned enterprises (i.e. transformation of state-owned enterprises into joint stock companies) and withdrawal of state capital have completed nearly three-quarters of this year’s plan. Although the number of enterprises remains low, capital withdrawn from outside sectors has achieved the target.
Competent authorities approved equitization plans of 48 enterprises by August 29, 2016 according to the Steering Committee for Enterprise Innovation and Development. Total actual value of these enterprises reached VND31.905 trillion, including VND23.28 trillion in state capital.
Vietnam had equitized 42 SOEs and two public non-business units by August 2016, including enterprises under Ministry of Defense, Ministry of Industry and Trade, Ministry of Agriculture and Rural Development, Ministry of Construction, State Capital Investment Corporation and some localities. In addition, the country had also implemented other arrangements for 11 enterprises.
Capital withdrawal also achieved positive results, especially from outside sectors. According to the Ministry of Finance, in the first eight months of this year, enterprises withdrew VND2.921 trillion in state capital from outside sectors, earning VND5.767 trillion. Groups and corporations withdrew VND381 billion, earning VND424 billion from securities, insurance, finance and banking, real estate and investment funds.
State capital in some groups and corporations has been more valuable compared to the book value. Viettel Group, Vietnam National Textile and Garment Group, State Capital Investment Corporation and Vietnam Northern Food Corporation have sold state capital with the book value of VND973 billion, earning nearly VND3 trillion.
The Ministry of Finance confirmed that the equitization of SOEs and withdrawal of state capital in groups and corporations have been basically implemented as planned. In addition, capital withdrawn from outside sectors has been drastically deployed. However, the equitization and capital withdrawal have seen slow progress since the beginning of the year.
The Ministry of Finance as well as ministries, departments, localities and economic corporations need to outline a specific roadmap and take strong measures to implement the equitization, seeing it as an important political task and the priority in the remaining months of 2016 and during the 2016-2020 period. The approriate capital withdrawn from outside sectors is also necessary to ensure the highest economic efficiency.
The Steering Committee for Enterprise Innovation and Development will continue to organize inspection teams to monitor and supervise ministries, departments, localities, economic groups and corporations in the implementation of the restructuring plans of SOEs, agriculture and forestry companies.