Econ
Vietnam's state reform lags behind schedule: Finance ministry
Only 11 state-owned enterprises (SOEs) completed the equitization process as of September 2018, totaling 26 out of 126 SOEs due to be equitized in the 2017 - 2018 period.
The equitization and divestment process of state-owned enterprises (SOEs) in the first nine months of 2018 is lagging behind schedule and risks missing the target set by Prime Minister Nguyen Xuan Phuc, according to the Ministry of Finance (MoF).
In the January - September period, the government approved equitizaiton schemes of 11 SOEs with a combined value of VND29.63 trillion (US$1.27 billion), of which VND15.32 trillion (US$657.07 million) was state capital.
Under the equitization scheme, the combined charter capital of 11 SOEs in subject is VND18.3 trillion (US$785 million), while the government would hold VND11.15 trillion (US$478.45 million).
Additionally, around VND2.28 trillion (US$97.83 million) would be sold to strategic investors, VND4.76 trillion (US$204.24 million) would be unloaded at public auctions and the remaining of VND95 billion (US$4.07 million) to employees and labor unions.
By the end of this year, at least 85 SOEs must complete the equitization process, according to the scheme. However, only 11 SOEs completed the equitization process as of September 2018, totaling 26 out of 126 SOEs due to be equitized in the 2017 - 2018 period.
This resulted in proceeds of VND10.49 trillion (US$450 million) from divesting VND5.06 trillion (US$217.07 miliion) in book value.
Moreover, only 18 out of 181 SOEs subject to divestment completed the process, during the 2017 - 2018 period.
The progress is far behind expectation set in the list of SOEs marked for divestment during 2017 - 2020 under the PM's Decision No.1232, which targets divestment in 135 SOEs in 2017 and 181 in 2018.
The divestment and equitization process of SOEs in 2017 contributed over VND144 trillion (US$6.34 billion) to the state budget, 2.41 times higher than the target set by the National Assembly, informed a 2017 report on utilizing state capital and assets at SOEs released on May 17. Among the most notable deals, the government sold a 53.6% stake in Sabeco for US$4.89 billion.
Illustrative photo.
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Under the equitization scheme, the combined charter capital of 11 SOEs in subject is VND18.3 trillion (US$785 million), while the government would hold VND11.15 trillion (US$478.45 million).
Additionally, around VND2.28 trillion (US$97.83 million) would be sold to strategic investors, VND4.76 trillion (US$204.24 million) would be unloaded at public auctions and the remaining of VND95 billion (US$4.07 million) to employees and labor unions.
By the end of this year, at least 85 SOEs must complete the equitization process, according to the scheme. However, only 11 SOEs completed the equitization process as of September 2018, totaling 26 out of 126 SOEs due to be equitized in the 2017 - 2018 period.
This resulted in proceeds of VND10.49 trillion (US$450 million) from divesting VND5.06 trillion (US$217.07 miliion) in book value.
Moreover, only 18 out of 181 SOEs subject to divestment completed the process, during the 2017 - 2018 period.
The progress is far behind expectation set in the list of SOEs marked for divestment during 2017 - 2020 under the PM's Decision No.1232, which targets divestment in 135 SOEs in 2017 and 181 in 2018.
The divestment and equitization process of SOEs in 2017 contributed over VND144 trillion (US$6.34 billion) to the state budget, 2.41 times higher than the target set by the National Assembly, informed a 2017 report on utilizing state capital and assets at SOEs released on May 17. Among the most notable deals, the government sold a 53.6% stake in Sabeco for US$4.89 billion.
