Four corporations under Ministry of Construction to be equitised in 2017

Hanoi (VNA) – Four major corporations under the Ministry of Construction, will be equitised in 2017 under Deputy Prime Minister Vuong Dinh Hue’s instruction on restructuring State-owned enterprises and enterprises with State capital.

The four are the Song Da Corporation, the Housing and Urban Development Corporation, the Vietnam Urban and Industrial Park Investment & Development Corporation, and the Vietnam Cement Industry Corporation.

The Deputy PM also ordered the divestment of State capital and transfer of State capital ownership right to the State Capital Investment Corporation (SCIC) at 12 equitised corporations and the four corporations that are carrying out equitisation.

The move should be carried out in adherence to regulations in Decision No 58/2016/QD-TTg of the Prime Minister, with the target firms to be classified into three groups. 

Group 1 comprises LICOGI Corporation in which the State-owned 40.71 percent stake will be maintained and the control of the State stake in the corporation will be transferred to the SCIC in the first quarter of 2017.

Group 2 comprises 10 corporations including the Vietnam Urban and Industrial Park Investment & Development Corporation. The State capital in those 10 will be reduced to zero percent by the end of 2018.

Group 3 comprises five corporations and companies including Song Da Corporation, Vietnam Cement Industry Corporation and the Housing and Urban Development Corporation. The State-owned capital in those firms will be reduced to 51 percent by the end of 2019 and a roadmap will be developed to transfer the State capital representative right at each corporation to the SCIC.

The Deputy PM requested the MoC to ensure the State and labourers’ interests during the equitisation and rearrangement process according to law.

He also assigned the MoC to strengthen management and supervision of State capital divestment at affiliates of corporations to prevent loss of State capital.-VNA