REVIEW
of
FINANCE -
November, 2018
13
good signal in the market. This has attracted the
attention of many foreign investors, because they
saw this as an attractive investment opportunity.
However, at present, the biggest barriers for
foreign investors in accessing equitized or divested
enterprises are the shareholding ratio, the offering
of small shares in the first issue, the problem of
limited information, lack of transparency in the
process of equitization and valuation not close to
the real value of the enterprise...
Attracting participation investor's in the process
of equitization and divestment
To accelerate the process of equitization and
divestment of state capital in the context of the
regional and world economic integration and to
attract more foreign investors to participate in
the process, some solutions should be focused as
follow:
Firstly,
reviewing the laws and regulations
related to equitization and divestment of state
capital in enterprises: Law on Enterprises; Law on
management and use of state capital invested in
production and business at enterprises; The Law
on Cadres and Civil Servants; Bankruptcy laws;
Labor Code to submit to the competent level
for inclusion into the program of the National
Assembly in order to adjust and supplement the
restructuring process and the role and position of
the SOEs in the coming time.
Secondly,
promulgating a decree on the
operation, organizational structure, functions and
tasks of the State Capital Management Committee;
At the same time, carrying out the necessary work
for Committee soon put into operation.
Thirdly,
developing mechanisms and policies
to submit to the Government such as the decree
on the operation of SOEs and the Decree replacing
Decree No. 99/2012/ND-CP dated November
15
th
, 2012 of the Government on the rights and
responsibilities of representative offices of
owners; The Decree replacing the Government’s
Decree No. 130/2013/ND-CP of October 16
th
, 2013
on the production and supply of public products
and services.
Fourthly,
ministries,sectors,localities,groupsand
corporations urgently formulating, promulgating
or submitting to competent authorities for the
approval of SOE restructuring plans.
Fifthly,
the ministries, sectors and localities
closely follow the list of enterprises subject to
equitization and divestment in the 2018-2020
period in order to follow the plan; Directing the
representative of the State capital at joint-stock
companies; Requesting equitized enterprises list
on the stock markets in line with the current law;
Handing over enterprises to SCIC in accordance
with the current regulations.
Sixthly,
intensifying the examination,
inspection, supervision and auditing activities to
avoid the loss of capital or state property in the
process of equitization or divestment; Resolutely
handling losses of enterprises, inefficient or low
efficient investment projects under the market
mechanism; Adopting appropriate control
mechanisms for capital sources for purchasing,
sale and/or merger of enterprises; Applying
corporate governance principles in line with
international practices.
Seventhly,
in order to increase the attractiveness of
foreign portfolio inflows in the context of favorable
capitalmarkets,statemanagementagenciesstudying
to remove the legal barriers and restriction against
foreign investors, improving the transparency of
the equitization process and the divestment of state
capital in SOEs; Creating conditions for investors
to buy dominant shares in equitized enterprises or
withdraw from state capital...
References:
1. Resolution of the 5
th
Plenum of the 12
th
Party Central Committee on
further restructuring, renovating and raising the efficiency of state
owned enterprises;
2. Committee for enterprise innovation and business development, Report
on the implementation of restructuring, equitization, capital withdrawal
of state owned enterprises 2017;
3. Decree No. 126/ND-CP dated November 16
th
, 2017 on equitizing state
owned enterprises;
4. PrimeMinister, Decision No. 58/2016/QD-TTg on criteria for classification
of state owned enterprises, partially state owned enterprises and
classifying state owned enterprises in the period 2016-2020;
5. Dang Quyet Tien, Solutions for promoting equitization, capital
divestment and improving the efficiency of using state capital and
assets in enterprises;
6. Committee for enterprise innovation and business development, Report
on the restructuring implementation of state owned enterprises and
implementation of the Government's Resolution No. 35/NQ-CP on
supporting and developing enterprises in the first 9 months of 2017.
