Illustrative image (Photo: HNX) Hanoi (VNS/VNA) - Ministries are working toconvince Prime Minister Nguyen Xuan Phuc to amend divestment plans at somelarge State-owned enterprises (SOEs).
The Ministry of Industry and Trade (MoIT) has proposed thePrime Minister allow it to remain the major shareholder in two SOEs, namely theVietnam Engine and Agricultural Machinery Corporation (VEAM) and Machines andIndustrial Equipment Corporation (MIE).
Those companies are on the list of SOEs which have to divestin 2017-2020 in accordance with the Prime Minister’s Decision 1232 issued in2017.
Under the decision, the MoIT has to sell the entire Statestake equal to 88.47 percent of VEAM’s charter capital and 99.54 percent ofMIE’s charter capital. Neither firm has completed its divestment plan.
The MoIT wants to keep control of VEAM and MIE after 2020 andremove the two companies from the divestment list. The ministry also hopes itwill not have to hand over control of the two companies to the State CapitalInvestment Company (SCIC) as regulated.
However, the ministry has not delivered appropriateexplanations as to the reasoning of the proposal.
In response, the Ministry of Planning and Investment has saidthe divestment plans for the two companies must stay on schedule while the PMwill decide whether the MoIT remains the largest shareholder in the twobusinesses.
The MoIT is also a major shareholder at the SaigonBeer-Alcohol-Beverage JSC (Sabeco). The ministry holds 36 percent of thebrewery company after it sold 53.59 percent of State capital to ThaiBev for 5billion USD in late 2017.
Sabeco will still be transferred to the SCIC as the MoITfailed to withdraw the remaining State capital from the brewer by December 31,2019.
Other ministries have also suggested divestment plans shouldbe changed for some large SOEs.
The Ministry of Construction has proposed its holding in theceramic and tile producer Viglacera remain at 38.58 percent by the end of 2020.
The ministry has sold 18.04 percent of the State capital itcontrols in Viglacera.
The construction ministry also wants to keep its stake in theVietnam Urban and Industrial Zone Development Investment Corporation (IDICO) at36 percent until the end of the year. It also wants to remain the majorshareholder in IDICO instead of giving it up to the SCIC.
The Ministry of Health expects it will be allowed to sellonly 29 percent of the Vietnam Pharmaceutical Corporation (Vinapharm) insteadof 65 percent as regulated./.
The Ministry of Industry and Trade (MoIT) has proposed thePrime Minister allow it to remain the major shareholder in two SOEs, namely theVietnam Engine and Agricultural Machinery Corporation (VEAM) and Machines andIndustrial Equipment Corporation (MIE).
Those companies are on the list of SOEs which have to divestin 2017-2020 in accordance with the Prime Minister’s Decision 1232 issued in2017.
Under the decision, the MoIT has to sell the entire Statestake equal to 88.47 percent of VEAM’s charter capital and 99.54 percent ofMIE’s charter capital. Neither firm has completed its divestment plan.
The MoIT wants to keep control of VEAM and MIE after 2020 andremove the two companies from the divestment list. The ministry also hopes itwill not have to hand over control of the two companies to the State CapitalInvestment Company (SCIC) as regulated.
However, the ministry has not delivered appropriateexplanations as to the reasoning of the proposal.
In response, the Ministry of Planning and Investment has saidthe divestment plans for the two companies must stay on schedule while the PMwill decide whether the MoIT remains the largest shareholder in the twobusinesses.
The MoIT is also a major shareholder at the SaigonBeer-Alcohol-Beverage JSC (Sabeco). The ministry holds 36 percent of thebrewery company after it sold 53.59 percent of State capital to ThaiBev for 5billion USD in late 2017.
Sabeco will still be transferred to the SCIC as the MoITfailed to withdraw the remaining State capital from the brewer by December 31,2019.
Other ministries have also suggested divestment plans shouldbe changed for some large SOEs.
The Ministry of Construction has proposed its holding in theceramic and tile producer Viglacera remain at 38.58 percent by the end of 2020.
The ministry has sold 18.04 percent of the State capital itcontrols in Viglacera.
The construction ministry also wants to keep its stake in theVietnam Urban and Industrial Zone Development Investment Corporation (IDICO) at36 percent until the end of the year. It also wants to remain the majorshareholder in IDICO instead of giving it up to the SCIC.
The Ministry of Health expects it will be allowed to sellonly 29 percent of the Vietnam Pharmaceutical Corporation (Vinapharm) insteadof 65 percent as regulated./.
VNA
