Deputy Prime Minister Truong Hoa Binh on August 6 requested the utmost effort from ministries, sectors, and State-owned enterprises (SOEs) to achieve the best result possible in equitising SOEs and divesting State capital from businesses.

Deputy Prime Minister Truong Hoa Binh (standing) speaks at the meeting of
the steering committee for enterprise reform and development on August 6 

At its meeting in Hanoi, the steering committee for enterprise reform and development reported that from 2016 to June 2020, more than VND218 trillion (US$9.4 billion) was collected from SOE equitisation and State capital divestment, up 2.79-fold against the figure recorded in the 2011-2015 period as a whole, of about VND78 trillion.

State capital divestment, however, is still behind schedule, it said, pointing out that under the PM-approved plan for 2017-2020, divestment at 348 enterprises is to be completed within the period but has been carried out at just 92, or only 26.4%.

Also head of the steering committee, Binh blamed the problem on the slow revision of regulations on equitisation and divestment as well as the lax implementation of the land law and the law on the management and use of public assets, while noting that many enterprises waited until the equitisation process began before beginning to address land-related issues.

Some ministries, sectors, localities, and SOEs haven’t been serious in completing the task, he said, adding that the COVID-19 outbreak has had an adverse impact in every socio-economic regard, including equitisation, divestment, and the stock market, not to mention certain existing barriers to the private sector development.

Noting that the remaining months of this year is also the final period for implementing the equitisation and divestment plan for 2016-2020, Binh asked ministries, sectors, and SOEs to exert every effort to restructure SOEs while accelerating equitisation and divestment to record the best possible results.