The event was held following the Government’s regular meeting and presided over by Minister-Chairman of the Government Office Mai Tien Dung. Mai said only two SOEs had their equitisation plans approved with total value of VND 295 billion (USD 12.68 million) in the first four months of 2019. From 2016 to April 2019, 161 SOEs had equitization plans approved with total value of VND 442 trillion (USD 19.11 billion), including VND 206 trillion (USD 8.9 billion) of State capital, she added. The remaining number of SOEs that must be equitised is 97, accounting for 76 percent of the assigned plan. Photo for illustration While explaining about this slow progress, Mai said some ministries, sectors, localities, economic groups and State-owned corporations have yet been active and serious in implementing equitisation, divestment and business restructuring plans. Problems related to finance, land, and labor have also hindered the process, the Deputy Minister said. Mai … [Read more...] about Equitization of State-owned enterprises remains slow: official
State owned enterprises
Equitisation of State-owned enterprises remains slow: official
Illustrative image (Source: VNA) Hanoi (VNA) – The equitisation of State-owned enterprises (SOEs) is still slow, failing to reach the rate of progress as directed by the Prime Minister, Deputy Minister of Finance Vu Thi Mai said at the Government’s regular press briefing in Hanoi on May 4. The event was held following the Government’s regular meeting and presided over by Minister-Chairman of the Government Office Mai Tien Dung. Mai said only two SOEs had their equitisation plans approved with total value of 295 billion VND (12.68 million USD) in the first four months of 2019. From 2016 to April 2019, 161 SOEs had equitisation plans approved with total value of 442 trillion VND (19.11 billion USD), including 206 trillion VND (8.9 billion USD) of State capital, she added. The remaining number of SOEs that must be equitised is 97, accounting for 76 percent of the assigned plan. While explaining about this slow progress, Mai said some ministries, … [Read more...] about Equitisation of State-owned enterprises remains slow: official
PM chairs conference on renovating State-owned enterprises
PM Nguyen Xuan Phuc chairs conference on renovating State-owned enterprises, Ha Noi, November 21, 2018 - Photo: VGP The work serves as an important tool to ensure the effective implementation of macro stabilization and inflation control policies, contributing significantly to socio-economic development. Among the attendants are Deputy PM Vuong Dinh Hue, head of the steering committee on business renovation and development, Deputy PM Trinh Dinh Dung, over 350 delegates from ministries, sectors and localities; State-owned groups and corporations; and other organizations, both at home and abroad. Recent results show that equitization is an important solution in reshuffling, reforming and restructuring SOEs. The results of equitization and divestment have produced positive impacts on the development of the stock market, while improving the operational efficiency of businesses after equitization. Most of the equitized SOEs have reported effective business and … [Read more...] about PM chairs conference on renovating State-owned enterprises
HCM City urged to speed up equitisation of State-owned enterprises
Deputy Prime Minister Vuong Dinh Hue has urged leaders of HCM City to promote and arrange the equitisation of state-owned enterprises that operate in HCM City.— Photo baodautu.vn Deputy Prime Minister Vuong Dinh Hue has urged leaders of HCM City to promote and arrange the equitisation of state-owned enterprises that operate in HCM City. Hue, who is head of the Government Steering Committee on Corporate Renovation and Development, praised the city’s earlier steps to equitise companies in a meeting last week, but pointed out that emerging legal issues and implementation had slowed progress. However, he noted that the Prime Minister will consider postponing equittisation of some of the city’s State-owned enterprises. Hue said that the city’s equitisation rate was slower than the nation’s. He said that far more State-owned enterprises should be equitised, except in security and military. “The city should withdraw State capital from enterprises, even … [Read more...] about HCM City urged to speed up equitisation of State-owned enterprises
Lingering problems in valuation of state owned enterprises
The valuation process of VTVCab is under scrutinty VTVCab is currently under scrutiny for its valuation process. The cable channel firm decided to put nearly 42.3 million of its shares on the market with the starting price of VND140,900 ($6.2). However, after a quick look at the business targets that VTVCab set for itself after the equitisation as well as its financial results in the past three years, investors could easily tell that the price-per-earnings ratio was sky high at 334x. This is the highest P/E ratio in the Vietnamese stock market so far. Since last year, VTVCab’s valuation has been a major cause of controversy. In May 2017, state auditors noted that the total amounts of the assets of VTVCab stood at VND4.27 trillion ($187 million), which is VND279 billion ($12.2 million) higher than the initial quotes by CPA Vietnam Auditing Company Ltd. According to State Audit of Vietnam, CPA Vietnam has to adjust its valuation of VTVCab and should not include a certain number … [Read more...] about Lingering problems in valuation of state owned enterprises
Vietnam to equitise 137 more state-owned enterprises by 2020
Prime Minister Nguyen Xuan Phuc has recently approved a plan on restructuring state-owned enterprises (SOEs) in the 2016-2020 period.Under the plan, during the 2016-2020 period, the government will equitise 137 SOEs and continue to hold a 100% stake in 103 SOEs, excluding defence and military enterprises, the State Capital Investment Corporation and the Vietnam Asset Management Company. Vietnam to equitise 137 more state-owned enterprises by 2020 The plan is aimed to promote divestment from non-core businesses and increase the SOEs’ financial as well as management capacity. It is also expected to deal with the ineffective operations of SOEs and loss-making projects, particularly 12 projects managed by the Ministry of Industry and Trade.The government has assigned the Ministry of Finance to issue decrees which aimed at clarifying accountability of consultancy organisations in evaluating state assets owned by SOEs for privatisation and divestment, as well as implementing … [Read more...] about Vietnam to equitise 137 more state-owned enterprises by 2020
Vietnam sees decline in number of State-owned enterprises
The report showed that Vietnam had around 518,000 enterprises as of January 1, 2017, including 12,800 enterprises in the investment phase and 505,000 enterprises which were actually operating, up 55.6% over the General inquiry's results in 2012. The number of private enterprises dominated the market with 500,000 enterprises, up 52.2% over 2012 and saw an annual growth of 8.7%. The foreign direct investment sector posted 14,600 enterprises, up 54.2% compared to 2012 and a 9.2% annual growth in the number of enterprises. Meanwhile, the number of operating SOE in Vietnam was more than 2,700 as of January 1, 2017, down 18.3% compared to 2012 (equivalent to 607 enterprises) due to the government’s efforts to privatise SOE over the past few years. The service sector witnessed the highest number of enterprises at 362,000, accounting for 70% of the total number of enterprises, which mainly operate in the areas of education and training, entertainment, health, warehouses, and real estate. … [Read more...] about Vietnam sees decline in number of State-owned enterprises
Special committee to manage VND5,400 trillion capital at State-owned enterprises
The Hanoitimes - Prime Minister has signed a decision to set up a working group in charge of forming a special committee dedicated to manage huge capital and assets worth some VND5,400 trillion (US$237.89 billion) at state-owned enterprises (SOEs). Deputy Prime Minister Vuong Dinh Hue is the head of the working group, which is also include four deputy heads --- Nguyen Hoang Anh, former Secretary of Cao Bang Province Party Committee, Minister-Chairman of Government Office Mai Tien Dung, Minister of Planning and Investment Nguyen Chi Dung and Minister of Finance Dinh Tien Dung. The special committee will manage state capital at 30 state-owned enterprises, including the National Oil and Gas Group The working group will act as a consultant to the Prime Minister in setting up the special committee. During a last year’s conference between the government, ministries, and localities, Phuc stressed that this committee, which represents ownership of … [Read more...] about Special committee to manage VND5,400 trillion capital at State-owned enterprises
Vietnam accelerates divestment from State-owned enterprises
Earlier in November 2017, the State also divested VND257 billion (US$11.3 million) worth of its stakes in the Vietnam Dairy Products Joint Stock Company (Vinamilk), thereby fetching VND8.73 trillion (US$384.12 million). So, after Vinamilk, Sabeco has marked a significant milestone in the process of State capital divestment in State-owned enterprises (SOEs), which is one of the important moves to restructure SOEs in line with the set direction.One of Vietnam’s fiscal challenges is the rapid increase in public debt, close to the permitted debt ceiling; the inefficient use of public debts; and the shrinking room for fiscal policy. Meanwhile, the open and extensively integrated economy with an increasingly fierce competitive environment requires that financial instruments as well as the budget must be strong enough to effectively perform the role of directing, regulating, distributing and supporting the economy. Therefore, in reform priorities, it is essential to effectively … [Read more...] about Vietnam accelerates divestment from State-owned enterprises
More state-owned companies to go public this year
Several state-owned companies including Vietnam Airlines, Vinatex and Viglacera will hold initial public offerings (IPOs) this year. Production for export at Viet Tien Garment Company, a subsidiary of Vinatex According to Vietnam Airlines’ restructuring plan, which has been approved by the government, the national flag carrier will sell 25% to 35% of its stake. After the IPO, the government will continue to hold between 65% and 75% of its VND8.942 trillion (USD428.4 million) in registered capital. Previously, the carrier only planned to sell between 20% and 30% of its share. After the IPO, Vietnam Airlines will become a holdings company, with nine units and 26 independent subsidiaries. The air carrier expects to have a pretax profit of USD1.08 billion and revenues of USD43.5 billion from air transportation alone by 2015. Along with Vietnam Airlines, nine major corporations under the management of the Ministry of Transport have been requested to … [Read more...] about More state-owned companies to go public this year