Solutions needed to boost SOE equitization and divestment

Difficulties in determining the value of land use rights and planning are among the main bottlenecks facing State-owned enterprise (SOE) equitization and divestment in recent times. Minister of Finance Ho Duc Phoc has said that if shareholders convert land use purposes to construction projects or sell the company and close the factory, it may lead to less production and many workers becoming unemployed. Enterprises must still pay annual land rentals post-equitization, he went on, and retain the land use purpose. If they do not need to use the land, it should be returned to the State or auctioned by the State to change the purpose.