The National Assembly has approved a resolution on increasing efficiency in managing state capital at state-owned enterprises (SOEs) and the equitization process, requesting strict measures to be applied to loss-making SOEs by 2020.
The decision was made following an endorsement of 97.33% of National Assembly deputies in a voting on June 15.
Following the resolution, the government must finish dealing with crippled SOEs and inefficient projects. The state will not subsidize and finance debt owed by loss-making enterprises. Those enterprises that could not propose a feasible restructuring plan will face merger, dissolution and bankruptcy.
The report recognized that he financial status of post-equitization SOEs has been more transparent. However, there remain shortcomings and violations in financial management and corporate governance during the divestment process.
The National Assembly, thus, requested the government to tighten SOEs' state capital management and utilization, especially in foreign lending, merging and acquiring enterprises. Additionally, the government is encouraged to refrain from issuing guarantees to SOEs.
By the end of 2016, a total of 18 corporations and large SOEs have invested in 110 projects abroad with total registered capital of US$12.6 billion, of which nearly US$7 billion has been disbursed, mainly in fields of telecommunication, oil exploration and rubber plantation.
PetroVietnam, with US$6.7 billion or 53% of Vietnam's total capital investment abroad, committed the largest investment capital in overseas projects, followed by Viettel with US$2.12 billion and Vietnam Rubber Group of US$1.41 billion.
The investments, however, are scattered and ineffective, according to the report. Out of the disbursed amount of US$7 billion, 25.5% of the projects reported losses and 29% have reported accumulated losses.
Consequently, Vietnam gained just US$145 million in profit in 2016, averaging 2% of total investment abroad.
Illustration photo.
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The report recognized that he financial status of post-equitization SOEs has been more transparent. However, there remain shortcomings and violations in financial management and corporate governance during the divestment process.
The National Assembly, thus, requested the government to tighten SOEs' state capital management and utilization, especially in foreign lending, merging and acquiring enterprises. Additionally, the government is encouraged to refrain from issuing guarantees to SOEs.
By the end of 2016, a total of 18 corporations and large SOEs have invested in 110 projects abroad with total registered capital of US$12.6 billion, of which nearly US$7 billion has been disbursed, mainly in fields of telecommunication, oil exploration and rubber plantation.
PetroVietnam, with US$6.7 billion or 53% of Vietnam's total capital investment abroad, committed the largest investment capital in overseas projects, followed by Viettel with US$2.12 billion and Vietnam Rubber Group of US$1.41 billion.
The investments, however, are scattered and ineffective, according to the report. Out of the disbursed amount of US$7 billion, 25.5% of the projects reported losses and 29% have reported accumulated losses.
Consequently, Vietnam gained just US$145 million in profit in 2016, averaging 2% of total investment abroad.
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