Deputy PM: SOEs to be rearranged, loss-making projects to be dealt with by 2025

The Office of the Government has issued Notice No. 224/TB-VPCP on the conclusion from Deputy Prime Minister Le Minh Khai at a meeting on the “Restructuring State-owned enterprises, focusing on economic groups and State corporations for the period 2021-2025” scheme, which directs the complete rearrangement of State-owned enterprises (SOEs) and solutions to deal with loss-making projects.

The Ministry of Finance (MoF) has a draft scheme on the restructuring of SOEs, focusing on State-owned groups and corporations in the 2021-2025 period. This is an opportunity for SOEs to restructure and become leaders in their industry, thus paving the way for businesses in other economic sectors and helping the economy become stable and posting growth. Deputy Prime Minister Le Minh Khai noted that the Ministry of Finance further clarified shortcomings and limitations in and reasons for the slow progress of equitization and divestment from SOEs as well as other issues.

The planning of restructuring, equitization, and divestment is not close to the actual circumstances, which has resulted in slow implementation. Restructuring has focused heavily on equitization and divestment but not paid sufficient attention to other forms of restructuring. There are shortcomings in the process and the salary and remuneration policies of managers and employees are inappropriate under a market mechanism. As a result, SOE equitization and divestment were both behind schedule in the 2016-2020 period.

Regarding the goals, tasks and solutions, Deputy Prime Minister Khai said that the MoF needs to closely follow Resolutions from the Communist Party of Vietnam, the National Assembly, and the government, as well as relevant laws, to develop objectives, tasks, and solutions, ensuring efficiency and feasibility and creating change in the restructuring of SOEs in the time to come. He directed that SOE restructuring be continued following rules and main viewpoints. He suggested that it focus on key sectors in important areas, clearly identify enterprises to carry out equitization and divestment, and consolidate and develop large-scale, effective State-owned economic groups with competitiveness in key industries. The restructuring should also be transparent, be able to improve the operational efficiency of SOEs after equitization, and promote the decentralization of responsibilities while at the same time creating favorable and proactive conditions for enterprises.