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Last updated: Monday, June 18, 2018


Comprehensive Restructuring of 16 SOEs

Posted: Wednesday, February 15, 2017

Minister of Construction of Vietnam Pham Hong Ha said, in the period 2016-2020, the comprehensive restructuring of 16 enterprises, including 12 joint stock corporations and 4 one-member limited companies, will be continued.

Recently, Deputy Prime Minister Vuong Dinh Hue, Head of the Steering Committee for Enterprise Renewal and Development, hosted a working day with the related ministries and agencies to propose solutions for restructuring the state-owned enterprises (SOEs) and those whose state capital is managed by the Ministry of Construction in the period 2016-2020.

Construction Minister Pham Hong Ha said, in the period 2016-2020, the State will continue to make arrangements for comprehensive restructuring of the 16 enterprises on a reasonable roadmap.

They are Development Investment Joint Stock Company (DIC), Red River Company, Bach Dang Company, Viglacera Corporation, Vietnam Water & Environment Investment Corporation JSC (VIWASEEN), Civil Engineering, Construction and Investment JSC (LICOGI), Lilama Corporation, Construction Corporation No 1 JSC (CC1), FiCO Corporation, Vietnam National Construction Consultants Corporation (VNCC), Construction Machinery Corporation (COMA), Housing and Urban Development Investment JSC (HUD), Song Da Corporation, Urban and Housing Development Investment Joint Stock Corporation (IDICO) and Vietnam Cement Industry Corporation (VICEM ). Among them, 12 enterprises have been equitised and 4 others including Songda, IDICO, HUD, and VICEM have been sorted in the SOE list in the period 2016-2020 under Decision 58/2016/QD-TTg of the Prime Minister.

According to Minister Ha, these 16 enterprises hold a huge capital of lands and tens of thousands of workers, the Ministry will strictly implement the policy of equitisation under Decision 58 of the Prime Minister.

Specifically, the Ministry of Construction will retain the capital share of the LICOGI and transfer it to the State Capital Investment Corporation (SCIC) from the first quarter of 2017; 36 per cent of the capital of the other 10 will be divested and transferred to the SCIC or other competent agencies to manage the State the capital in the 2018-2019; the State will continue owning less than 51 per cent of other 5 corporations including LILAMA, VICEM, Songda, VIGLACERA, HUD until 2020 because those corporations are holding large assets or have been engaged in the key national projects. This capital will be divested after 2021.

The Ministry of Construction will also continue to direct the divestment of their subsidiaries in 170 categories in the next 4 years.

Minister Pham Hong Ha also requested the transfer of the Ha Long Cement JSC and Song Thao Cement JSC to the VICEM through issuance of additional shares to increase their charter capital when these two businesses are beginning to break even.

Reviewing the plans of the Ministry of Construction, the leaders of the Ministry of Finance; Ministry Planning and Investment; Ministry of Home Affairs; Ministry of Labour, Invalids and Social Affairs; Government Office expressed support for the full rearrangements and restructuring of the SOEs under Decision 58 of the Prime Minister.

Deputy Prime Minister Vuong Dinh Hue requested the Ministry of Construction complete the roadmap of divestment and transfer of the right of the State ownership on time in accordance with the government's policies to maximize the benefit of the State. However, in 10 company-stock corporations, the Ministry of Construction will have sold out the state capital by 2018; those who are holding 36 per cent of the capital must report to the Prime Minister. The rest of 5 corporations will have divested to less than 51 per cent by 2019.

The capital of the Song Thao Cement JSC and Ha Long Cement JSC will be transferred to the VICEM and competent authorities should take serious consideration into approving the issuance of the additional shares and increasing the charter capital of the two companies.

The Government also asked the Ministry of Construction to review and urge the enterprises to have the IPO listed on the stock market in accordance with the regulations and in collaboration with the Ministry of Finance and Ministry of Planning and Investment to strengthen the business and personnel management, land management, reorganisation of personnel, redundant labour, and solve the problems related to equitisation to ensure the interests of the State. The Ministry of Construction will control the IPOs of subsidiaries of the corporations to strictly monitor the plans for selling State capital.


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