Transport Ministry equitises 137 SOEs during 2011-16 period

Hanoi (VNA) – The Ministry of Transport equitised 137 State-owned enterprises (SOEs) during 2011-16, surpassing the target by 67.

The firms’ initial public offering (IPO) earned 2.7 trillion VND (118.8 million USD), up 600 billion VND from the initial valuation, Minister Nguyen Van The said at the National Assembly’s discussion on the implementation of the law on management and use of State capital and estate in businesses and the equitisation of SOEs in 2011-16 on May 28.

According to statistics, in the period, 18 corporations were turned into joint stock companies, recording a 15 percent increase in revenue, a 194 percent surge in post-tax profit, and a 32-percent rise in workers’ incomes.

Almost all equitised enterprises have to date reported effective operations and joined the settlement of jobs for labourers and construction of key transport projects, the minister added.

Also at the discussion, Government Inspector General Le Minh Khai said during the period, the Government Inspectorate conducted 19 inspections at State groups and corporations, detecting numerous violations. They proposed recovering more than 1 trillion VND in violations for the State budget, dealing with many organisations and individuals and transferring to the investigation agency to handle 16 cases and prosecute 17 others.

He pointed out shortcomings of enterprises such as incorrect and insufficient financial reports, which have yet to reflect the reality of State assets and limitations of a small number of persons in the financial-accounting sector.

He proposed forming mechanisms encouraging leaders of enterprises to do business better.

Meanwhile, Minister of Finance Dinh Tien Dung presented some related contents. He stressed SOEs are an important tool to ensure the effective implementation of policies toward macro stability, inflation control, response to market fluctuation and creation of big revenue to the State budget, thus contributing to building and developing socio-economic infrastructure and accelerating economic restructuring. They also contribute to carrying out defence-security and social welfare tasks .

Minister Dung affirmed there is no gap in the law in terms of management and use of State capital and the equitisation of SOEs, adding that legal documents are available such as laws, resolutions of the National Assembly, Government decrees, the PM’s decisions and ministries’ circulars.

He agreed with the proposals of supervision delegations on the need to build a higher legal framework on the equitisation of SOEs.

Discussing obstacles in the management and use of State capital, Minister Dung pointed out that regulations on principles, administrative rules and settlement of violations are not strict, leading to violations in obeying legal regulations on the management and use of State capital and assets at enterprises and the equitisation of SOEs.

Besides, the operational effectiveness of SOEs in 2011-16 period needs to be assessed in relation to the global economic downturn, he added.-VNA