VN’s Phuc agrees list of SOEs for divestment

VIETNAMESE Prime Minister Nguyen Xuan Phuc has approved a list of 124 stateowned 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 t he most enterprises that need to divest with 28, including some big names like Thuong Dinh Shoes, 19 Ga r ment a nd Te x t i le Co, Hanel, Thuy Khue Shoes and Tran Phu Electrical Engineering Co.

A not her fou r enter pr i ses wil l have t heir capita l t ra nsfer red to t he St ate Capit a l Invest ment Cor p (SCIC) by December 31 i f d ivest ment by t he representat ive agency i s n o t c o mpl e t e b e f o r e 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 t ra nsfer red to t he SCIC for d i v e s t ment . T he t r a n s f er must be completed before August 31. These companies i nclude Viet na m Indust r ia l Const r uc t ion Cor por at ion and Saigon Beer, Alcohol and B e v e r a g e C o r p o r a t i o n (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 divest ment of f i r ms under the Ministr y of National Defence, Ministr y of Public Securit y, Ho Chi Minh Cit y People’s Committee, SCIC, Hanoi Beer, Alcohol and Beverage JSC, Viet nam Satellite Dig it a l Tele v i sion Co Ltd, V iet na m Telev i sion Tower Invest ment JSC a nd enterprises not listed in t his decision comply wit h t he pla n approved by aut horities.

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.

St a t e pr i v a t i s a t i on a nd divestment have not seen new changes since the beginning of t h i s y e a r. Mi n i s t e r of Finance Dinh Tien Dung said state divestment is ver y slow in many ministries and localities such as t he Ministr y of Industr y a nd Trade a nd t he Ministr y of Construction.