Businesses’ health much better: Deputy PM Hue

Wednesday, 2018-01-31 10:47:58
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The book value of SOEs is just over VND8.9 trillion, but the actual figure following divestment reaches nearly VND140 trillion.
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NDO – The "health" of enterprises is in a much better state, as the number of businesses generating profit has increased remarkably, from approximately 30% in 2012 to 47.3% last year.

>>> Vietnam to form commission to manage state capital in first quarter

The figure was announced by Deputy Prime Minister Vuong Dinh Hue while presiding over a meeting of the Steering Committee for Enterprise Renovation and Development on January 31, during which equitisation, the withdrawal of capital and the restructuring of State-owned enterprises (SOEs) in 2017 were reviewed.

According to the Steering Committee Deputy Head Nguyen Hong Long, last year 69 SOEs were approved for privatisation, including large enterprises worth over VND1 trillion. In 2017 alone, the value of State capital in equitised enterprises were re-determined to be at over VND160 trillion, 6.34 times higher than the total value of equitised State capital in 2016.

Last year, the country withdrew VND8.9 trillion in book value and gained over VND139 trillion from SOE divestment, of which the divestment in Sabeco and Vinamilk was worth nearly VND110 trillion and VND8.9 trillion, respectively.

Deputy PM Vuong Dinh Hue urges for the acceleration of the establishment of a special commission to manage State capital in enterprises in the Q1 this year.

According to Long, in 2017, the number of newly established enterprises reached the highest figure ever recorded with 126,859 enterprises, up 15.2% compared to 2016. The rate of business enterprises operating effectively was at 47.3%, of which profitable SOEs accounted for 83.5% and FDI enterprises 54.4%.

Deputy PM Hue, who is also Head of the Steering Committee, said that the number of profitable businesses has risen sharply. State capital withdrawal at 15.52 times higher than the book value is an unprecedented figure, in which Sabeco is up 32 times, reaching the maximum benefit.

Stating that 2018 is a peak year for the equitisation, reorganisation and divestment of SOEs, the senior government official requested that the establishment of a special commission to manage State capital in enterprises should be finalised in the Q1 this year.

He also urged the relevant ministries, agencies and localities to continue restructuring the entire SOE sector and solve any inadequacies.