To restructure State-owned enterprises (SOEs), in 2013, the Government of Vietnam will focus on improving institutions and facilitating equitisation of SOEs; rearrange business lines and investment projects; and divest from noncore investments to focus on core businesses.
Reshuffle approved for 23 out of 52 SOEs
In 2012, the Government approved the scheme "Restructuring SOEs, with a focus on State-owned economic groups and corporations in the 2011 - 2015 period" and the scheme “Renovating corporate governance in market economic practices". As a coordinator, the Ministry of Finance requested central bodies, provincial/municipal administrations, State-owned economic groups and corporations to work out corporate restructuring plans.
According to reports from central and local agencies, as of October 22, 2012, as many as 52 State-owned economic groups and corporations had their reshuffle plans and the Prime Minister approved 16. 23 out of 52 SOEs had their reorganizational plans approved. Particularly, the Prime Minister ratified the restructuring scheme for one State-owned economic group while ministries passed reshuffle plans for 22 corporations.
At locality level, 23 SOEs submitted restructuring plans to provincial/municipal People’s Committees and 21 were accepted.
Accelerating privatisation, divestment
According to many SOEs, the process of converting SOEs into joint stock companies is facing numerous difficulties related on corporate auditing, valuation, debenture, etc. These problems delayed the process.
Privatising units are confronting financial difficulties due to domestic and global economic slowdown and poor interest of the public in equity assets. Meanwhile, divesting investments in noncore businesses are experiencing difficulties because of value loss caused by economic slowdown and slumped stock market.
The Government will urge SOEs to complete restructuring plans to submit to competent authorities for examination and approval, and focus on improving institution, accelerating privatisation, restructuring business lines and investment projects, giving up noncore investments to focus on mainstream businesses.
The Government will complete the institution concerning the State ownership in SOEs, especially wholly owned entities. It will also complete institutions and criteria for monitoring and evaluating State ownership in SOEs. It will also finish institutions concerning information publicity and information disclosure for limited liability companies.
To make huge changes in economic restructuring and growth remodelling, the Government directs and requires all ministries, ministerial-level agencies, cabinet bodies, municipal/provincial administrations, and SOEs to thoroughly understand all the contents and requirements of the overall restructuring scheme. They necessarily build and implement the scheme or economic restructuring action programmes which adhere to industry or territory growth remodelling.
The economic restructuring programme or project must carry at least the following aspects, namely objectives, contents, tasks, solutions, effective time, and stakeholders. Economic restructuring and growth model change become main contents of working programmes and production - business plans.
Huong Giang
Vietnamese
