SOE restructuring process accelerated

Deputy PM Vũ Văn Ninh - Photo: VGP

Deputy Prime Minister Vũ Văn Ninh, Chairman of the Enterprise Reform and Development Steering Committee, on October 13 chaired a meeting to review the committee’s programs and plans.

Most of SOEs become one-member limited-liability companies

The Prime Minister has approved plans on equitizing some large SOEs, including the Việt Nam Steel Corporation, the Việt Nam National Petroleum Corporation, and the MHB Bank.

In the first 9 months of this year, Việt Nam restructured 47 SOEs, including 14 equitized, 1 dissolved, and 32 others converted into one-member limited-liability companies.

By October 30, 1,309 enterprises had been fully owned by the state, of which 1,245 had been converted into one-member limited-liability companies, and  64 SOEs selected for restructuring.

Among the 64 SOEs selected for restructuring, 39 are under the management of ministries, including 11 under the Transport Ministry.

According to the committee’s report, in the first 9 months of this year, some 57,800 enterprises with a total registered capital of over VND363.7 trillion were established, down 7.8% and 4%, respectively, against the same period last year.

Equitization faces difficulties

Many plans and schemes relating to SOE equitization have been implemented sluggishly. Some schemes have been postponed many times.

Outdated mechanisms and policies have also slowed down the SOE restructure process.

The SOE equitization results have not met requirements, partly because of the large scale of enterprises, complex finances and relations with other businesses. Meanwhile, inflation, tightened fiscal policies and gloomy stock markets have affected the issuance of shares by equitized SOEs.

SOE restructuring policies and mechanisms need to be improved

The committee considers improving polices and mechanisms on SOE restructuring as its focal task in the last quarter of this year. Inspection and surveillance are also other important tasks.

It will complete some large-scale schemes, including those on improving the operation efficiency of SOEs, separating state management from state ownership representation, reforming corporate governance in line with market economy customs, forming private economic groups…

Deputy Prime Minister Vũ Văn Ninh reaffirmed that the restructuring of SOEs is one of the three important fields of the economic restructuring plan.

                                                                                                                                     By Ngọc Vân