Vietnam govt may offload misfiring state enterprises

This is one of several solutions proposed by Prime Minister Nguyen Xuan Phuc to speed up the progress of state-owned enterprise restructuring.
In the second meeting of the newly-elected National Assembly on Thursday, the PM reviewed the implementation of SOEs restructuring in the past 10 years, and drew up a master plan on state-owned economic groups and corporation restructuring for the 2016-20 period.
In the report, he said the current progress of restructuring and equitising SOEs and selling stakes in non-core business sectors had fallen behind schedule.
The number of equitised enterprises was large but the ratio of capital sold was low, Phuc said and claimed some inefficient enterprises lacked transparency in their business operations.
Also, many large investment projects of state-owned economic groups and corporations suffered from delays, money losses and waste. Errors were slowly detected and not properly handled.
In the first nine months of this year, 48 SOEs were equitised, 10 businesses were dissolved and one declared bankruptcy, the report showed. 
The state also completed the sale of one enterprise and three public service delivery agencies.
The state sold shares worth VND2.8 trillion (Bt4.4 billion) in book value for VND5 trillion in the period.
Vietnnam’s government also approved the policy of selling stakes in big SOEs such as Saigon Beer, Hanoi Beer Alcohol and Beverage Joint Stock Corporation as well as 10 other enterprises including the biggest local dairy producer, Vinamilk.

Focus on equitisation
To execute the master plan on SOE restructuring in the next five years, Phuc said the government would focus on equitisation, divestment from SOEs and forcing equitised companies to list on the local stock market to streng-|then their transparency and avoid losses of state capital and property.
The State Audit of Vietnam will be assigned to conduct audits at enterprises with charter capital above VND5 trillion before equitisation.
The government also advocates considering land-use rights for business value and guaranteeing public and transparent auctions and listing on the stock exchanges to improve governance and operation of businesses after equitisation.
SOEs which suffer prolonged losses and cannot be improved may be sold or put up for bankruptcy, according to the law.
The government will step up reorganisation and improvements in the operational efficiency of agribusinesses and promote the socialisation of public service units and taking eligible public service agencies public up until 2020.