Equitisation plans of 48 SOEs receive approval

Hanoi (VNA) – A total of 48 State-owned enterprises, including six corporations, had their equitisation plans approved as of August 20.

According to the Corporate Finance Department under the Finance Ministry, the total real value of the enterprises is nearly 32 trillion VND (1.44 billion USD), of which 23.2 trillion VND (1.04 billion USD) belongs to the State.

Under the approved equitisation plans, the SOEs will have a combined charter capital of over 23 trillion VND (1.03 billion USD), of which the State holds more than 11 trillion VND (495 million USD).

Meanwhile, nearly 7.5 trillion VND (337.5 million USD) of shares will be sold to strategic investors, 342 billion VND to their workers, 6.7 billion VND to trade unions, and over 4.1 trillion VND will be put up for initial public offering.

During January-August, SOEs and the State Capital Investment Corporation (SCIC) divested over 2.9 trillion VND (130.5 million USD) and brought in over 5.7 trillion VND (256.5 million USD) in the process.

According to the department, in the first eight months of 2016, the equitisation process of State-owned enterprises has yet to meet expectations.

However, the efficiency of operations of equitised businesses has been improved.

In the time ahead, it is necessary to speed up the restructuring and increase the management quality and operation efficiency of State-owned enterprises, and increase inspections and supervisions over the operation of groups and corporations, according to the department.

SOEs will be urged to continue divesting their capital from non-core operations while the State will withdraw more capital from enterprises which the State does not need to hold ownership.-VNA