SOE equitization still going slowly

The equitization of State-owned enterprises (SOEs) in the first nine months of 2021 has stagnated, with the Ministry of Finance (MoF) receiving reports on approving the equitization plan of just three enterprises.

Moreover, these enterprises are not on the list of 89 enterprises in the equitization plan approved by the Prime Minister.

In the first nine months, according to the MoF, the book value of State capital divestment in 13 enterprises was VND287 billion ($12.68 million) and real earnings VND2.17 trillion ($95.97 million).

The slow equitization and divestment stemmed from reasons relating to Covid-19, with preparations in flux due to pandemic prevention measures.
The slow progress has also negatively affected collections and contributions to the State budget, with Covid-19 impacting efforts to complete collection plans.

Revenue from equitization and divestment contributed only VND366 billion ($16.12 million) to the enterprise arrangement and development support fund, or less than 1 per cent of the plan in Decision No. 1950/QD-TTg dated November 28, 2020 on the assignment of State budget estimates for 2021.
The MoF said that in the fourth quarter it will summarize the production and business results for 2020 and the 2016-2020 period of SOEs and report to the National Assembly at its October session.

At the same time, the ministry will coordinate with relevant bodies to propose relevant authorities handle problems arising in the process of equitization and arrangement of SOEs.