Deputy Prime Minister Vuong Dinh Hue has urged leaders of HCM City to promote and arrange the equitisation of state-owned enterprises that operate in HCM City.

Hue, who is head of the Government Steering Committee on Corporate Renovation and Development, praised the city’s earlier steps to equitise companies in a meeting last week, but pointed out that emerging legal issues and implementation had slowed progress.

However, he noted that the Prime Minister will consider postponing equittisation of some of the city’s State-owned enterprises.

Hue said that the city’s equitisation rate was slower than the nation’s.

He said that far more State-owned enterprises should be equitised, except in security and military.

“The city should withdraw State capital from enterprises, even profitable ones,” he said.

The deputy PM urged the People’s Committee to submit a plan to the city Party Committee to equitise and rearrange State-owned enterprises.

“The city must identify the value of equitised State-owned enterprises, and approve land-use plans before equitisation,” he said.

The national plan for this year called for a total of 64 State-owned enterprises to be equitised, with 39 in HCM City. However, the city has not been able to equitise any enterprise this year.

“The city has prepared to equitise and rearrange State-owned enterprises for a long time, but the final plan hasn’t been approved by the city Party Committee. This has led to a delay in equitising and rearranging 39 State-owned enterprises this year,” Le Thanh Liem, deputy chairman of the city People’s Committee, explained.

The chairman of the People’s Committee, Nguyen Thanh Phong, said that equitisation had been delayed because many issues remained unresolved.

The issues include the role of state-owned enterprises in implementing development plans; social welfare; State benefits; foreign investors’contribution of land-use rights via investments; and value of assets located downtown.

As a result, the city said the Government would adjust equitisation progress and the divestment plan in the 2018-2020 period and after 2020.

For instance, the city will equitise 32 State-owned enterprises in 2019 instead of 39 in 2018. The remaining seven enterprises will be equitised by 2020.

After 2020, state-owned capital in enterprises will be withdrawn under the Prime Minister’s Decision 58 and official letter No 991.

At the meeting, leaders confirmed that equitisation of State-owned enterprises must strictly follow the law but should also be implemented more quickly.

In a related matter, in November, the city must reduce the number of employees in administrative units, promote efficiency, and transform them into joint-stock companies, if possible. — VNS