Over VND16.7 trillion in divestment collected in first ten months

Friday, 2017-11-03 16:44:18
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SOEs withdraw nearly VND4.5 trillion to earn over VND16.7 trillion in divestment in the first ten months of 2017.
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NDO – State-owned businesses have withdrawn nearly VND4.5 trillion in order to earn over VND16.7 trillion (U$734.8 million) in divestment in the first ten months of 2017 (including divestments in 2016 that have been reported in 2017).

According to the Ministry of Finance, divesting capital in five sensitive areas, including securities, insurance, banking - finance, real estate and investment fund, stood at VND192 billion, earning VND301 billion. Meanwhile, the divestment of investment in other business sectors (excluding the above five sensitive areas) was at VND2.7 trillion, earning nearly VND4 trillion.

The State Capital Investment Corporation (SCIC) sold capital in 35 businesses worth VND1.6 trillion, earning VND12.5 trillion (including withdrawals in 2016 by Vinamilk, accounting for VND783.7 billion and earning VND11.3 trillion).

Particularly, in October 2017, the relevant units withdrew VND634 billion to collect VND765 billion, including the divestment of finance and banking worth VND86 billion, earning VND196 billion; divestment in other enterprises at VND483 billion, collecting VND495 billion; and SCIC’s selling at VND64 billion, earning VND74 billion.

By the end of October, 5/135 companies have withdrawn their capital in accordance with the Prime Minister's Decision No. 1232/QĐ-TTg, with total value of State capital at five enterprises standing at VND54.8 billion, collecting VND72 billion.

Furthermore, the Ministry of Industry and Trade has cooperated with the relevant agencies to develop a plan for divesting State capital in Sabeco, before submitting it to the Prime Minister for consideration.

Regarding equitisation, in the first ten months of 2017, 38 enterprises were approved for equitisation with the total actual value approved under the equitisation plan amounting to VND81 trillion, of which the actual value of State capital is at VND21 trillion.

The Ministry of Finance also stated that large-scale State-owned corporations have actively accelerated their equitisation process, however, the implementation of equitisation and divestment remains slow and has yet to reach the set plan.

Subjects for equitisation and divestment in this period were mainly large-scale enterprises with a wide range of activities, diversified business lines and financial complexity, which require the participation of many large investors with worthy financial capability and an effective management capacity. It is necessary to spend more time preparing, processing and auditing before announcing the value of the enterprises.

The handover of equitised companies to the SCIC is still sluggish, while the equitised enterprises are slow to register for trading and to be listed on the stock market.

In the last few months of the year, in order to accelerate the process of equitisation and divesting State-owned enterprises, the Ministry of Finance said that it would soon establish "State capital management committee at enterprises" as the owner's representative for State-owned enterprises and State capital in enterprises.

Meanwhile, strengthening the supervisory role for enterprises is also another requirement, in addition to jointly publicising information on the operation of enterprises by supervisory agencies and the enterprises themselves, so that the investors can seize the opportunity and facilitate investment participation with enterprises.