VN’s Phuc agrees list of SOEs for divestment


Vietnamese Prime Minister Nguyen Xuan Phuc has approved a list of 124 state-owned enterprises (SOEs) for divestment this year.

According to Decision No 908/QD-TTg, 120 enterprises will be divested by the representative agencies of the state capital (companies under ministries and provincial People’s Committees).

 

Hanoi has the most enterprises that need to divest with 28, including some big names like Thuong Dinh Shoes, 19 Garment and Textile Co, Hanel, Thuy Khue Shoes and Tran Phu Electrical Engineering Co.

Another four enterprises will have their capital transferred to the State Capital Investment Corp (SCIC) by December 31 if divestment by the representative agency is not complete before November 30.

They include Song Hong Corp, Hanoi Construction JSC, No 1 Construction Corp and Vietnam Urban and Industrial Zone Development Investment Corp (Idico).

In addition, 14 SOEs will be transferred to the SCIC for divestment. The transfer must be completed before August 31. These companies include Vietnam Industrial Construction Corporation and Saigon Beer, Alcohol and Beverage Corporation (Sabeco).

Notably, 69 other SOEs will have their divestment halted till the end of this year for review including 54 in the water supply sector. The businesses will face restructuring and capital withdrawal in 2021-2025.

State divestment of firms under the Ministry of National Defence, Ministry of Public Security, Ho Chi Minh City People’s Committee, SCIC, Hanoi Beer, Alcohol and Beverage JSC, Vietnam Satellite Digital Television Co Ltd, Vietnam Television Tower Investment JSC and enterprises not listed in this decision comply with the plan approved by authorities.

 

The decision aimed to accelerate the progress of divestment at firms the government does not need to hold capital in and to ensure collection for public investment plans in 2016-2020. It would also help promote the restructuring of SOEs to focus on key sectors of the economy.

The prime minister asked ministers and chairman of provincial People’s Committee to implement the divestment on schedule.

State privatisation and divestment have not seen new changes since the beginning of this year. Minister of Finance Dinh Tien Dung said state divestment is very slow in many ministries and localities such as the Ministry of Industry and Trade and the Ministry of Construction.

VIET NAM NEWS/ASIA NEWS NETWORK