Obstacles needed to be removed to promote equitisation and capital divestment: MoF

Tuesday, Jul 16, 2024 07:40

An overview of the six-month preliminary conference of the financial industry held by the Finance Ministry in Hà Nội on July 15. — VNA/VNS Photo

The Ministry of Finance (MoF) experts have stressed the need to remove obstacles in mechanisms and policies to promote the equitisation and divestment of state capital in enterprises.

Their suggestions were made during at a six-month preliminary conference of the financial industry held by the Finance Ministry in Hà Nội on Monday.

To address this, the ministry is currently synthesising, researching and preparing submissions to competent authorities. These submissions aim to amend and supplement problematic mechanisms and policies, specifically those related to the arrangement and handling of housing and land facilities during the equitisation and divestment process, according to the experts.

By doing so, the MoF is focusing on researching amendments and supplements to several key legislative documents:

The Law on Management and Use of State Capital Invested in Production and Business at Enterprises. This law governs the management and utilisation of state capital in enterprises, ensuring efficient use and accountability.

The Decree 126/2017/NĐ-CP, which pertains to the conversion of state-owned enterprises and one-member limited liability companies with 100 per cent charter capital invested by state-owned enterprises into joint-stock companies. Amendments and supplements are being considered to streamline this conversion process.

And the Decree 91/2015/ND-CP. This addresses the investment of state capital in enterprises and the management and use of capital and assets at enterprises. The MoF is working on amendments to enhance the effectiveness and transparency of these processes. And decrees Amending and Supplementing Decree 126/2017/NĐ-CP and Decree 91/2015/ND-CP: Additional modifications are being researched to ensure all related regulations are coherent and supportive of the equitisation and divestment efforts.

These legislative amendments aim to resolve existing issues, facilitate smoother transitions and promote the efficient management and divestment of state capital in enterprises.

The ministry is preparing submissions to amend these laws and decrees to resolve existing issues and promote smoother transitions and working on enhancing the coherence and supportiveness of these regulations.

In the first half of the year, the ministry reported slow progress in the equitisation and divestment of state capital in enterprises, citing several reasons including limitations in planning, organisation and implementation phases, a lack of awareness and commitment from owner representative agencies and business leaders and the ineffective inspections and lack of significant sanctions, affecting accountability.

To address these issues, the MoF underscores the necessity to strictly handle cases causing delays or violating regulations, clearly defining the responsibilities of relevant organisations and individuals, particularly leaders, in the processes of restructuring, equitisation and divestment of state-owned enterprises. — VNS

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