State-owned enterprises (SOEs) have divested nearly 2.3 trillion VND(108 million USD) from non-core businesses in the first nine months of2014, the Ministry of Finance has revealed.
The figure was3.7 times higher than that of 2013 but accounted for only 10.2 percentof the total proposed divestment of 22.5 trillion VND (1 billion USD) by2015.
Sectors for divestment include securities, banking, insurance, and real estate.
Most of the divestment activities took place in the banking sector.However, since bank stocks have lost their previous attraction, SOEs hadto forego profits by selling at prices lower than or equal to theinitial purchase prices for these stocks.
For example, VietnamNational Shipping Lines is trying to sell its 2.52-percent stake inMaritime Bank for 15,650 VND a stock, approximately the buying priceseveral years ago.
After deducting initial investment costs,divesting costs and taxes, proceeds from SOEs' divestments will berecorded in their profits, the ministry said.
Meanwhile,proceeds from dividends made in 2013 will be added to the State budget.According to the State Capital Investment Corporation, the proceeds areworth 19 trillion VND (892 million USD), of which about 80 percent willgo to the State.
Under the schedule of equitising SOEs, a totalof 432 corporations shall be privatised in 2014 and 2015. However, only71 SOEs have been equitised so far this year.
The ministryexplained that the remaining SOEs are large corporations with complexfinancial operations and large investors, and therefore divestmentsthere require lengthy preparations.
"The major reason for thelateness is the unstable stock and real estate markets, causingunfavourable conditions for divestment and equitisation," the ministryrevealed in a report. It added that the economy grew slowly, so the SOEshad failed to improve their operations and financial status.
The ministry said the total profit of SOEs in 2013 reached 171.67trillion VND (8 billion USD), a 17-percent year-on-year increase.However, parallel to that are doubtful debts that increased by 15.8percent to 10.3 trillion VND (483.5 million USD).-VNA
The figure was3.7 times higher than that of 2013 but accounted for only 10.2 percentof the total proposed divestment of 22.5 trillion VND (1 billion USD) by2015.
Sectors for divestment include securities, banking, insurance, and real estate.
Most of the divestment activities took place in the banking sector.However, since bank stocks have lost their previous attraction, SOEs hadto forego profits by selling at prices lower than or equal to theinitial purchase prices for these stocks.
For example, VietnamNational Shipping Lines is trying to sell its 2.52-percent stake inMaritime Bank for 15,650 VND a stock, approximately the buying priceseveral years ago.
After deducting initial investment costs,divesting costs and taxes, proceeds from SOEs' divestments will berecorded in their profits, the ministry said.
Meanwhile,proceeds from dividends made in 2013 will be added to the State budget.According to the State Capital Investment Corporation, the proceeds areworth 19 trillion VND (892 million USD), of which about 80 percent willgo to the State.
Under the schedule of equitising SOEs, a totalof 432 corporations shall be privatised in 2014 and 2015. However, only71 SOEs have been equitised so far this year.
The ministryexplained that the remaining SOEs are large corporations with complexfinancial operations and large investors, and therefore divestmentsthere require lengthy preparations.
"The major reason for thelateness is the unstable stock and real estate markets, causingunfavourable conditions for divestment and equitisation," the ministryrevealed in a report. It added that the economy grew slowly, so the SOEshad failed to improve their operations and financial status.
The ministry said the total profit of SOEs in 2013 reached 171.67trillion VND (8 billion USD), a 17-percent year-on-year increase.However, parallel to that are doubtful debts that increased by 15.8percent to 10.3 trillion VND (483.5 million USD).-VNA
