12
the period of 2016-2020” issued on May 25
th
,
2017, by the end of June 2018, there have been
34 enterprises approved by the authority for
their restructuring plans; in which: The Prime
Minister approved the restructuring plans of 7
groups and corporations; The Ministry of Finance
approved the restructuring plan of VietnamAsset
Management Company for the period of 2016-
2020; The Ministry of Transport with: 3 groups
and corporations; The Ministry of Information
and Communications with: two corporations...
Mechanisms and policies on restructuring
and equitization of SOEs have been improved
comprehensively in line with the requirements
of state management of enterprises in the new
situation, at the same time promoting and
creating conditions for enterprises to build their
restructuring and equitization plans consistent
with their current business andmarket conditions.
As reported by the Standing Board of the
Steering Committee for Enterprise Renovation
and Development, in the first 6 months of 2018,
the Government approved equitization plan of
19 SOEs (86.2% as compared to the same period
of 2017) with the total value of VND 40,672.09
billion, of which state capital is VND 23,084.23
billion. 58.83% of charter capital was held by the
Government, 40.66%was sold to external strategic
investors and the rest 0.51% for to employees.
At the same time, 16 companies issued IPOs
and sold them to strategic partners, earning VND
22,457.29 billion when they sold 46% of chartered
capital to outside shareholders and employees
(including 8 enterprises having their equitization
plan approved from 2017 and 8 enterprises in
2018). This revenue is 4.5 times higher than the
revenue from the IPO of the whole 2017.
In the first 6 months of 2018, ministries
and localities have withdrawn capital from 42
companies with book value of VND 1,813 billion,
earning VND 5,598 billion (3.08 times higher
than book value), of which 10 enterprises was on
the list of divestments under Decision No. 1232/
QD-TTg dated August 17
th
, 2017 of the Prime
Minister on approving the list of state-owned
enterprises to divest in the period of 2017-2020.
Total revenue from equitization, divestment in
the first 6 months of 2018 reached VND 28,055.29
billion. So far, the total progressive revenue from
equitization and divestment has reached VND
198,000 billion (compared to VND 30,000 billion
in 2016 and VND 140,000 billion in 2017). From
2016 to now, the revenue from equitization is 2.5
times higher than that in the period of 2011-2015
(about VND 78,000 billion).
The restructuring of agro-forestry companies
and public service agencies has also been
implemented by ministries, sectors and localities.
In the first six months of 2018, the country has
rearranged 160/249 units including 78 units with
100% state-owned capital; 42 enterprises finishing
equitization plan; 12 enterprises converting into
limited liability companywith 2members ormore,
23 enterprises having dissolution plan approved
and implemented, 5 enterprises converting into
Forest Management Board. Up to now, 32 public
service units have had their equitization plan
approved nationwide.
However, the results are not as expected and
some problems still exist in the implementation
process. The implementation of equitization,
divestment, restructuring of enterprises according
to the direction of the Prime Minister and the
implementation of the reporting mechanism in
some ministries, branches and localities have
not been proper. Equitized enterprises have had
difficulties in finance, land and labor in the pre-
equitizationperiod, so requiring time forprocessing
and prolonging the equitization period...
The process of boosting equitization, divestment
of state capital inVietnam is creating high attraction
to foreign investors. The government’s clear
message about the determination to sell businesses
that the state does not need to engage in business
(such as alcohol, beer, cigarettes, etc.) is creating a
2017
135
181
62
28
0
181
2018
2019
2020
GRAPH 1: SOESWITHDRAWING STATE CAPITAL 2017-2020
Source: mpi.gov.vn, mof.gov.vn
