Equitisation funds to be used correctly
Proceeds from the sale of State capital at Saigon Beer-Alcohol-Beverage Corporation (Sabeco) and other State-owned enterprises will be used for the right purposes as approved by the National Assembly.
Proceeds from the sale of State capital at Sai Gon Beer-Alcohol-Beverage Corporation (Sabeco) and other State-owned enterprises will be used for the right purposes as approved by the National Assembly (Photo: zing.vn)
Hanoi (VNA) - Proceeds from the sale of State capital at Saigon Beer-Alcohol-Beverage Corporation (Sabeco) and other State-owned enterprises will be used for the right purposes as approved by the National Assembly.
This statement was made by the Ministry of Finance (MoF) at a press conference on the equitisation of State-owned enterprises (SOEs) on December 25.
The Ministry of Industry and Trade offloaded over 343.6 million shares, or a 53.6-percent stake in Sabeco, for almost 110 trillion VND (4.8 billion USD) on December 18. However, concern remained over what the Government will do with these proceeds.
Dang Quyet Tien, Director of the MoF’s Corporate Finance, said all proceeds from the sale of State capital at Sabeco and other SOEs will be transferred to an account held by the ministry at the State Treasury.
This money will be audited by the State Audit to “ensure its proper use”, Tien said.
According to the National Assembly’s instructions, proceeds from State capital divestments will be spent on development investment and social security (such as education and health).
During the period 2016-20, the National Assembly has planned to collect 250 trillion VND from divestments. The targets for 2017 and 2018 are 60 trillion VND and 65 trillion VND, respectively.
The Government has earned about 120 trillion VND from the sale of capital at Sabeco and Vinamilk this year. On December 28, investors who purchased Sabeco shares will complete the payment.
In 2018, the State’s divestment portfolio includes big names such as Hanoi Beer Alcohol and Beverage Joint Stock Corporation (Habeco), Vinamilk and other companies under the management of the State Capital Investment Corporation (SCIC) such as PV Oil and Binh Son Refining and Petrochemical Co Ltd.
The State’s remaining 36 percent stake at Sabeco will also be put on sale at the proper time, Tien said.
Ten State-owned enterprises have made divestures from non-core business lines in 2017. Divestments from five sensitive industries (banking-finance, insurance, securities, real estate and investment funds) brought in 292 billion VND, a 60 percent premium over the book value of 182 billion VND.
In remaining sectors, the State has collected over 2.95 trillion VND from share sales compared to a total book value of 1.8 trillion VND.
SCIC, the Government’s investment arm, has sold capital in 40 companies this year for nearly 21.64 trillion VND, a 11.4-fold premium over the total book value of 1.9 trillion VND, including 11.3 trillion VND from Vinamilk’s share sale in 2016 and nearly 9 trillion VND for another 3.33 percent of Vinamilk’s capital on November 10 this year.
Regarding equitisation, about 45 enterprises have been approved for equitisation as of December 20, with total actual value of almost 213.75 trillion VND, a six-fold increase over the value of enterprises equitised in 2016.
Value of State capital in these companies is 88.39 trillion VND, 3.5 times higher than 2016’s value.-VNA
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