Illustrative photo (Photo: VNA)


Hanoi (VNA) – The Ministry of Construction said that speeding up the equitisation of and divestment of State capital from its State-owned businesses is one of the main focuses of the sector in 2018.

In the first two quarters of this year, the ministry completed the equitisation of the Song Da Corporation and the Vietnam Urban and Industrial Zone Development Investment (IDICO), turning them into joint stock companies.

Accordingly, over 4.6 trillion VND (197.4 million USD) was collected from the equitisation of the two businesses, with 4.08 trillion VND of which paid to the State budget.

At the same time, the ministry also finished State capital divestment at the Bach Dang Construction Corporation, paying 538 billion VND to the State budget.

Meanwhile, divestment plans have been made for remaining corporations including Viglacera, Vietnam National Construction Consultants Corporation (VNCC), the Hanoi Construction Corporation (Hancorp), FiCO Corporation, Vietnam Machinery Installation Corporation (Lilama), Construction Corporation No. 1 (CC1), Vietnam Water and Environment Investment Corporation (Viwaseen), Construction Machinery Corporation (COMA) and Song Hong Construction Corporation.

The Prime Minister had asked for the divestment of 135 SOEs in 2017 and 181 in 2018. However, only five companies completed the work in the first six months of 2018, bringing the total enterprises to have divested to 16 so far.

The reason for this slow progress was ineffective implementation of the PM’s directions, while problems in finance, land and labourers also hindered the work.

 At the same time, despite the issuance of solutions for the problems, the implementation of the solutions remained inefficient, especially in land-related issues.

To promote the process of equitisation, divestment and restructuring of SOEs, in the rest of the year, agencies should review relevant laws such as the Law on Enterprises, the Law on Management and Use of State Capital Invested in Production and Business at Enterprises, the Law on Public Servants and the Law on Bankruptcy.

Meanwhile, ministries and sectors should design mechanisms and policies to submit to the Government and Prime Minister, including a decree on operations of SOEs, a decree on the rights and responsibilities of State capital owner representatives, and another on the production and supply of public products and services.-VNA