PM approves SOE restructuring project for 2016-2020

VGP – The PM has recently approved a project on the restructuring of State-owned enterprises (SOEs) in the period of 2016-2020, with a focus on State-owned economic groups and corporations.

May 31, 2017 4:11 PM GMT+7

The project aims to implement the reshuffle, equitization and divestment of SOEs so that they will have more reasonable structures, focusing on key sectors and fields, including essential public services for the society, national defence and security, natural monopoly and application of high technology.

The restructuring process will be implemented publicly and transparently in accordance with the market mechanism and legal regulations onequitization and divestment, in order to avoid interest groups and losses of State capital and assets.

The project seeks to orientate investment activities of SOEs into science and technology, strategic fields guiding and directing the building of a knowledge-based economy, and sectors with high technological content, contributing to enhancing the competitiveness of the economy, improving the operational and production efficiency of SOEs, and ensuring that activities of SOEs be managed and supervised closely, publicly, transparently and equally with businesses of other economic sectors.

Under the project, equitization work will be completed on 137 SOEs from 2016 to 2020, and by 2020, the State only holds 100% capital in 103 enterprises (not to include agro-forestry and fisheries companies, defence and security businesses, the State Capital and Investment Corporation, the Viet Nam Debt and Asset Trading Corporation and the Viet Nam Asset Management Company) in the list of SOEs subject to the reshuffle in the 2016-2020 period according to the Prime Minister’s Decision No. 58/2016/QD-TTg dated December 28, 2016.

In addition, a roadmap will be devised for the selling of State capital in joint stock companies and limited liability companies with two or more members, to ensure accordance with the criteria set out at Decision No. 58/2016/QD-TTg.

The project will carry on with the goal of comprehensively restructuring SOEs, including the reshuffle of businesses; the enhancement of their financial capabilities; and the renovation of their administration, technologies, human resource organization and management, product structures and development strategies, in order to improve the operational efficiency of enterprises.

By Vien Nhu