A paradox exists in the fact that even though the sale of State capital is tardy, the starting price is still quite high. Analysts point out that this is due to problems in real estate valuations. The Ministry of Finance has said it will continue to perfect legal mechanisms and policies in a synchronous manner to speed up the progress of equitization.
According to a report presented by the Ministry of Finance to the National Assembly, one reason the equitization and divestment of State capital has stalled in recent times is the lack of incentive when the State-owned enterprise (SOE) is posting strong growth and high profits. This leads to many SOEs remaining in industries where the State does not need to maintain ownership.
Revenue from the equitization of and divestments by State-owned corporations contributed VND1.4 trillion ($61.81 million) to the State budget in 2021, or just 3.5 per cent of the plan. This year, it is expected that divestments by six large firms, including FPT Corporation and the Hanoi Beer - Alcohol - Beverage Corporation (Habeco), will bring in VND20 trillion ($883.1 million).
Despite starting the process in 2007, Agribank’s equitization remains in the preparation stage, with land issues being the main sticking point. There are still 80 Agribank housing and land facilities that have not been approved by the Ministry of Finance.
