Hanoi (VNA) – Not any enterprise had its equitisation plan approved in the first five months of this year, the Ministry of Finance reported on June 5.
However, progress was made on restructuring efforts. As of May, authorities approved restructuring proposals by 101 firms. The Prime Minister approval covered five out of nine enterprises, while owner representatives signed off on plans for 96 out of 667, including 19 State-owned and 77 local companies. The remaining SOEs are still developing restructuring plans for submission.
State divestment activity also saw a slow pace. During May, the State Capital Investment Corporation (SCIC) divested from two enterprises, generating proceeds of 180.58 billion VND (7.52 million USD). A total of four SOEs were divested in the first five months of this year, for 149.2 billion VND.
The ministry has pledged a renewed commitment to drastic, substantive and effective corporate restructuring, equitisation, and State capital divestment throughout 2024. This initiative will be closely linked with efforts to modernise corporate governance practices within SOEs, including boosting operational efficiency through modern technology platforms, enhancing accountability, and addressing loss-making or ineffective projects to ensure the best interests of the State, employees and investors./.
