461 proposals related to equitization and withdrawal of capital from state-owned enterprises have been received

Mr. Dang Quyet Tien said that the Ministry of Finance has received 461 proposals from 18 ministries, 44 corporations and 46 localities.

Moreover, there were managers and economic experts participating in the seminar, including: Mr. Phung Van Hung – Permanent member of Economic Committee of the National Assembly; Mr. Dang Quyen Tien, Director of Corporate Finance Department (Ministry of Finance) and Mr. Luu Bich Ho, former Director of Development Strategy Institute (Ministry of Planning and Investment).

According to the assessment of the Steering Committee for Enterprise Renovation and Development, the legal framework for the operation of state owned enterprises (SOEs) has been completed by the Government, ministries and sectors, including the solutions about equitization. Over the past 20 years, about 92% of SOEs have equitized, but in fact only about 10% of state capital is replaced by private capital.

In the future, the Party, the National Assembly and the Government will continue to direct SOEs to promote the equitization more effectively in order to mobilize capital from the private sector, change the management capacity of SOEs, for contributing to foster the efficiency of production activities.

However, in the list of equitization and withdrawal capital from SOEs approved by the Prime Minister in the period 2016-2020, the State still holds the dominant shareholding in some SOEs in order to keep the group in key position. This is an important force of the state economy, contributing to promoting economic development and the progress of social justice and equality as stated in the Resolution of the 5th plenum of the 12^th Party Central Committee.

At this time, the Deputy Prime Minister Vuong Dinh Hue and Deputy Prime Minister Trinh Dinh Dung will co-chair the Prime Minister's meeting with the SOEs for discussing on the solutions.

Sharing about this conference, Mr. Dang Quyet Tien said that: The objective of the conference is to review and re-evaluate the two term of 2016-2020 of the equitization, withdrawal capital, rearrangement of SOEs and more than a year of implementing the spirit of Resolution No.12 of the Party Central Committee. It also implemented under the Resolution No. 60 of the National Assembly on the further improvements and promoting the implementation of policies and legislation on the use of capital and management, state assets in enterprises and SOEs equitization.

Through that, the difficulties, shortcomings and obstacles, especially the limitations, can be identified and timely repaired in order to complete the restructuring and reform of SOEs, which is the mission of the Government as assigned by the Party and National Assembly.

According to Mr. Tien, up to now, the Ministry of Finance has received 461 proposals from 18 ministries and authorities, 44 corporations and 46 localities. The proposals of enterprises, ministries and sectors mainly reflect the difficulties in the implementation of policies, the specific characteristics of equitization in land arrangements, valuation of enterprises, or to remove difficulties in production issues, especially for dealing with the problems that existed with the losses of the economic groups recently.

"It could be said that this was an opportunity for the Government, Ministries and enterprises, to sit down and work together in order to find solutions for speeding up the equitization of SOE, as well as removing and handling other backlogged projects that attracted recent public concerns,"- Mr. Tien said.

Commenting on the objectivity of the proposals sent to the conference, Mr. Phung Van Hung said, "All the proposals of the enterprises are welcome, however, the authorities need to consider and assess whether the proposals are relevant to the market economy or not, whether they are consistent with the legal system or not, in line with the integration process and Vietnam's commitments in its agreements or not. If they consider those issues, the management authorities can choose the proposals that need to be concerned and resolved in order to satisfy the expectations of enterprises.”

Throughout the seminar, the experts and managers identified the realities of SOEs' operation in the current legal framework of enterprises, the socio-economic management of the State in general. From that, proposing the solutions and suggestions for the Government, the Prime Minister and the corporations and State corporations so as to raise the efficiency of enterprises.