The purpose of issuing this list is to speed up the selling of state capital in enterprises which the State does not need to ensure the revenue sources, thus assisting the medium-term public investment plan of 2016 – 2020. At the same time, the restructuring of state-owned enterprises (SOEs) will be facilitated, so that the focus can be placed on other important stages of the economy.
The times which the State will withdraw capital from enterprises are 406, divided into years so that the ministries and localities can conduct the act. In particular, in 2017, the State must withdraw capital from 135 enterprises. The number would be 181 in 2018, 62 in 2019 and 28 in 2020. In this list, some companies will divest several times during this period.
Looking at some large SOEs in the list, the Vietnam Engine and Agricultural Machinery Corporation (under the Ministry of Industry and Trade) had to withdraw 52.47% of its minimum capital (compared to charter capital) in 2017 and by 2020 this enterprise will have to relinquish another 35%.
At the Ministry of Transport, Airports Corporation of Vietnam also has to divest two times. The first time, the corporation will have to withdraw 20% of its minimum capital stock in 2018. By 2020, it will have to relinquish another 10.40%. In addition, Vietnam Airlines will withdraw once, at least 35.16% by 2019.
In order to successfully implement the Decision, Deputy Prime Minister Vuong Dinh Hue requested the ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government and the chairmen of the People's Committees of the provinces and cities directly under the Central Government to drastically withdraw capital from enterprises according to the schedule and ratios already approved in the list enclosed with this Decision. Related agencies need to conduct the task strictly in accordance with the provisions of law and shall be responsible to the Government and the Prime Minister for the results of the performance.
The Deputy Prime Minister requested related ministries and provinces to be proactive in speeding up the equitization process based on the market condition. At the same time, it is necessary to include additional enterprises in the list of divestment but still ensure the efficiency, transparency and clarity.
The Deputy Prime Minister requested related ministries and provinces to strictly follow the transfer of state enterprise ownership to the State Capital Investment Corporation (SCIC) in accordance with the law. Right after completing the hand-over process, SCIC will work on the divestment in conformity with this Decision.
For some unique and large scale enterprises, the divestment will be conducted base on separate decision from the competent authorities. Specifically, these are agricultural enterprises and enterprises linked with state owned corporation, which have not equitized yet, as well as enterprises under the management of Ministry of Defense, Ministry of Security, Ho Chi Minh People’s Committee, SCIC, Habeco, Sabeco, Transport Hospital, Vietnam Satellite Digial Television Co., Ltd., and Vietnam Cable Television Investment JSC.
On the other hand, on the meeting with regard to this portfolio, the Ministry of Planning & Investment said, in 2017, total capital divested is 60 trillion VND (equivalent to 2,64 billion USD) to ensure the steady stream of revenue from equitizaiton. It is expected that in the remaining 6 months of 2017, enterprises will continue divestment process with approx. 20 trillion VND (880 million USD) or even up to 30 trillion VND (1,32 billion USD).
In terms of 406 state owned enterprises in the list of divestment until 2020, the capital is expected to be divested is 65 trillion VND (2,86 billion USD).
Vice Director of Finance Department (Ministry of Finance) Dang Quyet Tien said: “it is important to issue the list, so that investors can grasp the opportunities. This is the first time that the government has released the list, as in the past, investors had to wait for the announcement of equitization in each specific case, so it was not useful and efficient for both sides. With the current transparency, investors can have an overall insight of state owned enterprises going through the equitization process to have appropriate strategy. I believe this is an efficient solution to speed up and achieve efficiency in enterprise management during the process of equitization.
