New solutions should be provided for equitization and restructuring of state-owned enterprises

Strictly handling cases of delaying in equitization and divestment

According to the Ministry of Finance, as of February 2024, projects to restructure 77 state-owned enterprises have been approved by the competent agencies under Decision No. 360/QD-TTg dated March 17, 2022 of the Prime Minister, including 14 central enterprises and 63 local enterprises. The remaining enterprises have developed their projects on equitization to submit to competent authorities for review and approval. In addition, there have no enterprises that have been approved the project on equitization. The units still implement divestment in February 2024.

The Ministry of Finance recognized that the equitization, divestment, and restructuring of state-owned enterprises still see slow progress and do not meet the plan assgigned by the Prime Minister. The reason for the situation results from obstacles in making plan and implementing supervision and inspection. The awareness and performance of some owner’s representative agencies and business leaders have not been high and drastic.

However, over the past time, there have not had sanctions in handling the responsibilities of heads of state-owned enterprises, owner’s representative agencies, and state management agencies in the slow implementation of equitization and divestment of state capital in enterprises.

In 2024, this work should be reformed and performed more effectively. Accordingly, the Ministry of Finance said that in addtion to promoting preparations and completing necessary procedures for equitization and divestment of state capital at enterprises, the Ministry of Finance said that violations in capital equitization and divestment should be strictly handled.

It is necessary to identify the responsibilities of relevant organizations and individuals, especially the leaders in the arrangement, equitization, divestment, restructuring of state-owned enterprises, and performing related tasks; consider implementation and achievement of the task as a criterion for evaluating relevant agencies, units, and individuals.

According to experts, state-owned enterprises need to enhance disclosure and transparency of information about their financial situation and production and business activities to create trust and attract investors before implementing equitization and divestment.

Promoting autonomy for state-owned enterprises

The amendment to the Law on Management and Use of State Capital invested in production and business at enterteprises (Law 69) has attracted attention. In the recent working session with the Prime Minister, Mr. Nguyen Nang Toan, Chairman of Saigon Newport Corporation proposed to soon amend Law 69, including the sepcification of regulations on State capital and capital of state-owned enterprises, assessment of the effectiveness of using state capital invested in enterprises and capital of state-owned enterprises invested in other enterprises based on the long-term goals of enterprises... to promote the autonomy and inovation of state-owned enterprise managers.

The Chairman proposed revising regulations on profit distribution of state-owned enterprises in the direction of allowing some state-owned enterprises that operate effectively for many consecutive years and have large and effective investment and development projects to retain after-tax profits after setting up funds to add charter capital for investment and development of projects, ensuring competitiveness and international integration. .

Similarly, Mr. Pham Duc An, Chairman of the Board of Members of the Vietnam Bank for Agriculture and Rural Development (Agribank) proposed innovating the capital management mechanism for investment in state-owned enterprises, including strengthening autonomy right for state-owned enterprises, and promoting supervision and handling violation to minimize damage. It is necessary to specify the target assigned to each regime and each state-owned enterprise, especially the ability to master technology, production of import-replacement products with high added value, and avoid only assign business growth and profit targets.

The proposal to amend Law 69 has been mentioned many times by the state-owned enterprises as well as the directions of the Government and the Ministry of Finance. Recently, the Ministry of Finance also assigned the Department of Corporate Finance to explain opinions of Government members on the project to develop a Law to replace Law 69 to submit competent agencies for decision.