Vietnam National Shipping Lines (Vinalines) is due to sell more than 280 million shares in its initial public offering (IPO) at the Hanoi Stock Exchange in early August (Photo: VNA)

Hanoi (VNA) – The equitisation plans of eight State-owned enterprises (SOE) were approved in the first half of 2018, with a total value of 29.37 trillion VND (1.29 billion USD), including more than 15.16 trillion VND (667.04 million USD) of State capital, the Ministry of Finance has reported.

The ministry further revealed that per the schedule agreed by Prime Minister Nguyen Xuan Phuc, at least 85 enterprises must complete their equitisation in 2018.

In the first six months of this year, SMEs divested 2.5 trillion VND (110 million USD), withdrawing more than 6.45 trillion VND (283.8 million USD).

The PM had asked for the divestment of 135 SOEs in 2017 and 181 in 2018. However, only five companies completed the work in the first six months of 2018, bringing the total enterprises to have divested to 16 so far.

Deputy Minister of Finance Huynh Quang Hai said the progress of SOE’s equitisation and divestment has remained slow.

The ministry said the reason for this was ineffective implementation of the PM’s directions, while problems in finance, land and labourers also hindered the work.

At the same time, despite the issuance of solutions for the problems, the implementation of the solutions remained inefficient, especially in land-related issues.

The ministry said that to promote the process of equitisation, divestment and restructuring of SOEs, in the rest of the year, agencies should review relevant laws such as the Law on Enterprises, the Law on Management and Use of State Capital Invested in Production and Business at Enterprises, the Law on Public Servants and the Law on Bankruptcy.

Meanwhile, ministries and sectors should design mechanisms and policies to submit to the Government and Prime Minister, including a decree on operations of SOEs, a decree on the rights and responsibilities of State capital owner representatives, and another on the production and supply of public products and services.

The ministry highlighted the need for owner representatives in enterprises subjected to equitisation and divestment in 2018-2020 to complete the plan on schedule. Enterprises which are unlikely to finish the work on time should report their difficulties to the Government.

It also requested SOEs review land under their management to build land use plans in accordance with the Land Law and submit the plans to State management agencies before equitisation.-VNA