SOEs equitisation remains slow

12/06/2017 11:25

As many as 96.5 percent of State-owned enterprises (SOEs) was equitised as of the end of March this year, but the privatized capital amount from these reached only 8 percent.

Illustrative image (Source: petrotimes.vn)

Hanoi (VNA) – As many as 96.5 percent of State-owned enterprises (SOEs) was equitised as of the end of March this year, but the privatized capital amount from these reached only 8 percent, according to a report of the General Secretary of the National Assembly.

Under the report reviewing the restructuring of public investment, SOEs and credit institutions, prepared for the National Assembly’s upcoming question-and-answer session, the divestment from SOEs remains slow, as up to 92 percent of the State capital has not been equitised.

This means that the private sectors are not interested in involving in areas where the state does not need to hold capital.

Only eight SOEs have been equitised in the first three months of this year, while 41 others were listed for equitisation.

In term of capital withdrawal, a total 72.8 billion VND in book value was divested from 10 SOEs by March 25.

According to the Ministry of Planning and Investment, the acceleration of divestment from SOEs can generate revenue of between 15-20 billion USD in 2016-2020.

In 2016, 56 enterprises were approved for equitisation. The total value of these firms was 34 trillion VND, of which the State capital was valued at 24.4 trillion VND.

According to the Prime Minister’s Decision No. 58/2016/QD-TTg dated December 28, 2016, the country set to equitise 137 SOEs in 2017-2020.-VNA

VNA