Only one State-owned enterprise (SOE) had its equitisation plan approved in August, lifting the total number of approved businesses this year to 10 (nine companies and one civil service unit), Ministry of Finance data showed.

The number is far behind this year’s target of 85 SOEs.

The total value of these 10 enterprises exceeded VND29.5 trillion (US$1.26 billion), of which VND15.27 trillion belonged to the State.

Ending August, State-owned corporations and enterprises made VND3.77 trillion from divestment, collecting VND9.14 trillion for the State budget by selling the stakes at a higher price than book value.

Concerning the reasons for the delay, Deputy Prime Minister Vuong Dinh Hue in July’s meeting pointed out major challenges, including the evaluation and approval of land use plan after equitisation, complicated pre-equitised auditing process of big corporations, the lack of determination of enterprises’ leaders and poor stock market conditions.

According to Dang Quyet Tien, director of the Corporate Finance Department under the Ministry of Finance, authorities needed to strengthen inspection and supervision, as well as sanction leaders of delaying SOEs. It is also necessary to revise the list of SOEs pending for equitisation and divestment and urge them to follow the plan.

If enterprises registered to equitise in 2017 but fail to do in 2018, these companies should be transferred to the State Capital Investment Corporation, the Government agency that oversees most SOEs, Tien said. — VNS