Gov't to divest from sensitive sectors

Thursday, Nov 26, 2015 08:24

Cash transaction at a Vietcombank's branch in Ha Noi. —VNS Photo Viet Thanh

HA NOI (Biz Hub) — The total State capital invested in five sensitive sectors that need divesting in the last two months of 2015 have touched almost VND16.2 trillion (US$723.2 million), says a Government report.

These five sectors include securities, investment funds, insurance, and real estate, apart from finance-banking, according to the latest report on the restructuring progress of State-owned enterprises (SOEs).

The divestment capital in the finance-banking sector is the highest, at over VND9.1 trillion ($406.8 million), followed by the real estate sector with nearly VND6.1 trillion ($272.3 million), insurance with VND553 billion ($24.7 million), and securities with VND233 billion ($10.4 million), in addition to investment funds at VND215 billion ($9.6 million).

The report showed that the Government invested nearly VND4.26 trillion ($190.2 million) in these five sectors in 2014. Meanwhile, the incremental investment value which was earned from receiving dividends as well as increases in charter capital of State-invested companies touched over VND1.4 trillion ($62.5 million) last year.

The report also updated the divestment capital value from the five sectors until October to VND4.46 trillion ($199.1 million), collecting over VND4.1 trillion ($183.6 million) for the State Budget.

From 2012 to October 2015, State-owned enterprises have divested nearly VND9.87 trillion ($440.6 million) from these five sectors, garnering for the State budget nearly VND9.5 trillion ($424 million). The incremental investment value from receiving dividends was VND4.54 trillion ($202.7 million) during the same period.

By the end of October, 175 SOEs have received equity, lifting the total number of restructured SOEs since 2011 to 471, out of the 531 planned for the 2011-2015 period.

Another 114 enterprises are projected to complete the equity process by the end of this year to meet the initial target of 289 set for the whole year, the report said.

To date, Prime Minister Nguyen Tan Dung has endorsed the restructuring plan of 20 State economic groups and corporations. The ministries and provincial People's Committees have also approved the equity schemes of 79 State corporations under their management.

However, some ministries and provinces witnessed snail-paced restructuring progress with no enterprises having received equity till the end of October, such as the Ministry of Natural Resource and Environment, Ministry of Information and Communications or provinces of Nam Dinh, Tien Giang, and Binh Duong, in addition to Binh Phuoc, Dak Lak and Gia Lai.

According to the report, such slow progress was attributed to a complete lack of awareness among some business leaders of the importance of SOE restructuring for the country's economic and social development.

With respect to external impacts, the volatility of the domestic and international financial markets has also affected the divestment process or the sales of State investment.

In a resolution on the 2016 socio-economic development scheme, approved by the National Assembly, the government has pledged to step up the restructuring process while improving efficiency of the restructured enterprises. It has also directed SOEs to continue selling government stakes in non-core businesses. — VNS

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