A decision explaining Decree15/ND-CP, which orders the selling of theState's stakes in non-core businesses at below face value, is expectedto be issued this month.
This was announced on theMinistry of Finance's website. The withdrawal of capital at below facevalue was among the key resolutions which were taken to accelerate therestructuring of State-owned enterprises (SOE). It was also decided that432 SOEs must be equitised during the 2014-15 period.
Although Decree 15/NQ-CP was issued in March, allowing the sale of theState's stakes at discounted rates, the process has been going slow asmany SOEs are stuck, especially because of the withdrawal of outsideinvestments which had incurred losses, and due to the lack of detailedinstructions.
From 2013 to June 2014, SOEs managed towithdraw around 1.85 trillion VND, or 87.3 million USD, from theirnon-core businesses, comprising only 22 percent of the total non-coreinvestments of 22 trillion VND (1.04 billion USD) which need to bewithdrawn by 2015. There is a huge load of work that needs to becompleted by the end of 2015.
However, Deputy Directorof the Corporate Finance Department Dang Quyet Tien said the capitalwithdrawal process was projected to speed up during the second half ofthe year, with the Government taking measures to accelerate it.
Deputy Prime Minister Vu Van Ninh recently asked ministries andprovincial people's committees to punish leaders of enterprises whichfailed to implement equitisation or capital withdrawals efficiently.
The Decree 69/2014/ND-CP on the establishment, re-arrangement andoperation of State economic groups and corporations, which will comeinto force on September 1, has banned SOEs from investing in irrelevantsectors.
The State Capital Investment Corporation(SCIC) has studied to buy a stake in 12 groups and corporations innon-core businesses such as banking and insurance.
SCIC's General Director Lai Van Dao told a press meeting held inHanoi on July 24 that the units were big State-owned enterprisesincluding Vietnam Rubber Industry Group (VRG), Vietnam National Oil andGas Group (PVN), the Electricity of Vietnam (EVN), the Viettel TelecomGroup, the Vietnam National Coal and Minerals Industry Group (Vinacomin)and Vietnam National Shipping Lines (Vinalines).
Daosaid SCIC met with Vinalines and VRG on the issue and would meet withother groups and corporations based on evaluation of the divestment'seffectiveness and progress.
He added that in the firsthalf of the year, the corporation had succeeded in divesting itscapital in 31 enterprises. Of these, in 26 businesses the corporationsold its non-core investments while in five other firms it sold a partof such capital.
"The selling of capital was higherthan in the same period last year, bringing 863 billion VND (41 millionUSD) to the corporation and posting 46 percent year-on-year increase,"he said.
SCIC gained 3.35 trillion VND (159.5 millionUSD) in turnover in the period, increasing 37 percent over thecorresponding period last year and met with 57 percent of the year'starget. Its after-tax profits reached 2.6 trillion VND (123.8 millionUSD), representing 34 percent year-on-year rise.
Bythe end of June, its list of businesses included 335 enterprises withtotal State-owned investment of more than 15 trillion VND (714.2 millionUSD) and charter capital of over 65 trillion VND (3.09 million USD).
According to SCIC's restructuring plan, it would divestfrom 376 firms by 2015. However, it would hold long-term capital inVietnam Dairy Products Joint Stock Company (Vinamilk), Hau GiangPharmaceutical, FPT, and Vietnam National Reinsurance Corporation.
In addition, it would have controlling stakes in more than 20 jointstock companies including Bao Minh Insurance Corporation, the Trang TienInvestment and Trade Company.-VNA
This was announced on theMinistry of Finance's website. The withdrawal of capital at below facevalue was among the key resolutions which were taken to accelerate therestructuring of State-owned enterprises (SOE). It was also decided that432 SOEs must be equitised during the 2014-15 period.
Although Decree 15/NQ-CP was issued in March, allowing the sale of theState's stakes at discounted rates, the process has been going slow asmany SOEs are stuck, especially because of the withdrawal of outsideinvestments which had incurred losses, and due to the lack of detailedinstructions.
From 2013 to June 2014, SOEs managed towithdraw around 1.85 trillion VND, or 87.3 million USD, from theirnon-core businesses, comprising only 22 percent of the total non-coreinvestments of 22 trillion VND (1.04 billion USD) which need to bewithdrawn by 2015. There is a huge load of work that needs to becompleted by the end of 2015.
However, Deputy Directorof the Corporate Finance Department Dang Quyet Tien said the capitalwithdrawal process was projected to speed up during the second half ofthe year, with the Government taking measures to accelerate it.
Deputy Prime Minister Vu Van Ninh recently asked ministries andprovincial people's committees to punish leaders of enterprises whichfailed to implement equitisation or capital withdrawals efficiently.
The Decree 69/2014/ND-CP on the establishment, re-arrangement andoperation of State economic groups and corporations, which will comeinto force on September 1, has banned SOEs from investing in irrelevantsectors.
The State Capital Investment Corporation(SCIC) has studied to buy a stake in 12 groups and corporations innon-core businesses such as banking and insurance.
SCIC's General Director Lai Van Dao told a press meeting held inHanoi on July 24 that the units were big State-owned enterprisesincluding Vietnam Rubber Industry Group (VRG), Vietnam National Oil andGas Group (PVN), the Electricity of Vietnam (EVN), the Viettel TelecomGroup, the Vietnam National Coal and Minerals Industry Group (Vinacomin)and Vietnam National Shipping Lines (Vinalines).
Daosaid SCIC met with Vinalines and VRG on the issue and would meet withother groups and corporations based on evaluation of the divestment'seffectiveness and progress.
He added that in the firsthalf of the year, the corporation had succeeded in divesting itscapital in 31 enterprises. Of these, in 26 businesses the corporationsold its non-core investments while in five other firms it sold a partof such capital.
"The selling of capital was higherthan in the same period last year, bringing 863 billion VND (41 millionUSD) to the corporation and posting 46 percent year-on-year increase,"he said.
SCIC gained 3.35 trillion VND (159.5 millionUSD) in turnover in the period, increasing 37 percent over thecorresponding period last year and met with 57 percent of the year'starget. Its after-tax profits reached 2.6 trillion VND (123.8 millionUSD), representing 34 percent year-on-year rise.
Bythe end of June, its list of businesses included 335 enterprises withtotal State-owned investment of more than 15 trillion VND (714.2 millionUSD) and charter capital of over 65 trillion VND (3.09 million USD).
According to SCIC's restructuring plan, it would divestfrom 376 firms by 2015. However, it would hold long-term capital inVietnam Dairy Products Joint Stock Company (Vinamilk), Hau GiangPharmaceutical, FPT, and Vietnam National Reinsurance Corporation.
In addition, it would have controlling stakes in more than 20 jointstock companies including Bao Minh Insurance Corporation, the Trang TienInvestment and Trade Company.-VNA
