Businesses Operate Effectively after Equitization

10:25:57 AM | 4/22/2019

Project "Restructuring State-owned enterprises (SOEs), with a focus on economic corporations, State-owned corporations in the period of 2016-2020" to promote economic development and integration with the world, especially in the period of the 4.0 Revolution. Regarding reshuffle in the transport sector, the Vietnam Business Forum has an interview with Mr. Nguyen Van Cong, Deputy Minister of Transport (MOT). Luong Tuan reports.

Could you please tell us the progress on equitizing SOEs under the management of MOT?

Up to now, all State-owned enterprises which are owned by the Ministry of Transport have completed the transformation to joint stock companies. Vietnam National Shipping Lines has been transferred to the Committee for Management of State Capital (CMSC), which is now responsible for its transformation to a joint stock company.

During the process of equitization, what difficulties have you met and how will you solve them in the coming time?

In the process of equitization, the MOT has instructed its enterprises to carry out the transformation in accordance with the law (Decree 59/2011/ND-CP, Decree 189/2013/ND- CP, Decree 116/2015/ND-CP). The MOT has summed up problems and difficulties during the implementation process and made proposals to meet the progress as directed by the Prime Minister namely the selection of a consulting agency to determine corporate value; equitization plan consultancy; adjustment of the book value of equitized enterprises according to the enterprise valuation results, etc. The above proposals have been reviewed by the Government and the Prime Minister to promptly issue more appropriate legal documents (such as Decree 126/2017/ND-CP).

How do businesses operate after being equitized?

Up to 2016, when the MOT was also the representative of the owner of State capital in equitized enterprises, enterprises after equitization became more efficient, profitable, ensuring income for workers. Since 2016, the MOT has completed the transfer of State capital representation to the State Capital Investment Corporation (SCIC), divesting State capital at enterprises as directed by the Prime Minister. Therefore, the operation of these enterprises is run by the State Capital Investment Corporation, their Board of Management. The MOT only performs the function of State management in the field of transportation as prescribed.

What will be your next goal in the equitization of enterprises? What are your priorities?

Currently, after transforming five corporations including Vietnam Railways, Vietnam National Shipping Lines, Vietnam Expressway Corporation, Airports Corporation of Vietnam and Vietnam Airlines, the remaining enterprises under the authority of the MOT are mainly businesses providing public services to ensure flight operations, maritime safety, publishing and businesses that are implementing restructuring under the direction of the Government (Ship Building Industry Corporation and Cuu Long Corporation for Investment Development and Project Management of Infrastructure). These are all non-equitized enterprises. Performing the function of representing the owner of State capital, the MOT will focus on monitoring and improving the operational efficiency of enterprises, striving to effectively implement the plan of restructuring enterprises after being granted approval.

Thank you very much!