Econ
SOEs equitisation hardly reach annual target
The divestment and equitisation of State-owned enterprises (SOEs) will hardly meet the Government’s target this year, as only 34 SOEs had completed the process by the end of September.
According to the Government’s approved plans, Vietnam must complete the equitisation of 44 SOEs this year, 64 next year, 18 in 2019 and one in 2020.
The remaining 10 SOEs are large-scale SOEs operating in multi industries with complicated financial situation which needs the participation of many big investors with financial potential and good investment and governance capacity.
According to the plan, the Vietnam Dairy Joint Stock Company (Vinamilk), Saigon Alcohol Beer and Beverages Corporation (Sabeco), and Hanoi Alcohol Beer and Beverages Corporation (Habeco) must complete divestment by the end of this year. However, so far, only Vinamilk has announced detailed plan to sell 3.33 percent of its charter capital which is represented by the State Capital Investment Corporation (SCIC).
“According to our assessment, of the major enterprises having plans to divest in the fourth quarter, Vinamilk was the first one to finalize the schedule. Hopefully the public sale of 3.3 percent Vinamilk’s shares will achieve good results”, SCIC chairman Nguyen Duc Chi said.
Contrary to Vinamilk, the information on Sabeco’s and Habeco’s divestment has not been released. To speed up the progress, Ministry of Finance (MoF) has proposed the Prime Minister to instruct Ministry of Industry and Trade (MoIT) to complete the sale of capital in these two units and transfer the capital to the fund to support the restructuring and development of enterprises prior to December 1st 2017.
In the case when the MoIT has not completed the disclosure of the state capital withdrawal announcement in Sabeco and Habeco before September 30th 2017, the agency must transfer the right to represent ownership in Sabeco and Habeco to SCIC in order to ensure faster capital divestment, because SCIC is specializes in capital divestment.
However, according to Dang Quyet Tien, director of the MoF’s Corporate Finance Department, the MoIT has so far not submitted the plan to sell capital in these two SOEs.
Tien said that there are three groups of measures to accelerate the equitisation and divestment in SOEs, including completion of institutions, implementation, and promotion of propaganda. In particular, the group of institutional measures have been ready as the obstacles and barriers were resolved by Resolution 84 on equitisation in oil and gas enterprises with capital scale of up to VND20 trillion. The Prime Minister has assigned the Government’s working group and the MoF to go inspect and urge the implementation of tasks.
Regarding the implementation measures, since the Vietnam’s stock market is small, if the large supply is poured at the same time, the demand can hardly be met. Thus, the foreign investment flows from foreign countries such as Japan and Korea should be called.
Concerning the issue of propaganda, the progress of equitisation must be published and regularly updated on the websites of the government and MoF to have the basis for inspection and acceleration.
The country reaped VND15.99 trillion (US$704 million) through State capital divestment from SOEs in the first nine months of this year, of which VND105 billion came from the divestment of stock, insurance, finance and banking, real estate and investment fund.
Last year, 56 SOEs were approved for equitisation, with a total value of VND34 trillion, of which the State capital stood at VND24.4 trillion.
The remaining 10 SOEs are large-scale SOEs operating in multi industries with complicated financial situation which needs the participation of many big investors with financial potential and good investment and governance capacity.
According to the plan, the Vietnam Dairy Joint Stock Company (Vinamilk), Saigon Alcohol Beer and Beverages Corporation (Sabeco), and Hanoi Alcohol Beer and Beverages Corporation (Habeco) must complete divestment by the end of this year. However, so far, only Vinamilk has announced detailed plan to sell 3.33 percent of its charter capital which is represented by the State Capital Investment Corporation (SCIC).
A dairy production line of Vinamilk, which has so far announced detailed plan to sell 3.33 percent of its charter capital on November 10 this year.
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“According to our assessment, of the major enterprises having plans to divest in the fourth quarter, Vinamilk was the first one to finalize the schedule. Hopefully the public sale of 3.3 percent Vinamilk’s shares will achieve good results”, SCIC chairman Nguyen Duc Chi said.
Contrary to Vinamilk, the information on Sabeco’s and Habeco’s divestment has not been released. To speed up the progress, Ministry of Finance (MoF) has proposed the Prime Minister to instruct Ministry of Industry and Trade (MoIT) to complete the sale of capital in these two units and transfer the capital to the fund to support the restructuring and development of enterprises prior to December 1st 2017.
In the case when the MoIT has not completed the disclosure of the state capital withdrawal announcement in Sabeco and Habeco before September 30th 2017, the agency must transfer the right to represent ownership in Sabeco and Habeco to SCIC in order to ensure faster capital divestment, because SCIC is specializes in capital divestment.
However, according to Dang Quyet Tien, director of the MoF’s Corporate Finance Department, the MoIT has so far not submitted the plan to sell capital in these two SOEs.
Tien said that there are three groups of measures to accelerate the equitisation and divestment in SOEs, including completion of institutions, implementation, and promotion of propaganda. In particular, the group of institutional measures have been ready as the obstacles and barriers were resolved by Resolution 84 on equitisation in oil and gas enterprises with capital scale of up to VND20 trillion. The Prime Minister has assigned the Government’s working group and the MoF to go inspect and urge the implementation of tasks.
Regarding the implementation measures, since the Vietnam’s stock market is small, if the large supply is poured at the same time, the demand can hardly be met. Thus, the foreign investment flows from foreign countries such as Japan and Korea should be called.
Concerning the issue of propaganda, the progress of equitisation must be published and regularly updated on the websites of the government and MoF to have the basis for inspection and acceleration.
The country reaped VND15.99 trillion (US$704 million) through State capital divestment from SOEs in the first nine months of this year, of which VND105 billion came from the divestment of stock, insurance, finance and banking, real estate and investment fund.
Last year, 56 SOEs were approved for equitisation, with a total value of VND34 trillion, of which the State capital stood at VND24.4 trillion.
