Ministry of Finance to discipline representative of equitised enterprises that have not yet listed on stock market

	Need for independent valuation agency to involve in equitisation of State-owned enterprises
	Dark and Bright picture after equitization- Part 5: Transport Hospital, after equitization is a dead end!
	Equitization: Heads must take responsibilities under Prime Minister for failure to fulfill assigned plans

There are 92 enterprises that are not required to conduct equitisation in 2020. Photo: Internet

In the written response to the Vietnam Financial Consulting Association on the proposal to add stock sources for the stock market through promoting equitisation and capital divestment for State-owned enterprises, the Ministry of Finance said that under the equitisation and capital divestment at Dispatch No. 991/TTg-ĐMDN and Decision No. 26/2019/QD-Ttg, Decision No. 1232/QD-TTg for 2016-2020, 128 enterprises are subject to equitisation and 348 enterprises are subject to capital divestment. However, the equitisation and capital divestment has been slow and behind schedule.

From 2016 to May, 2020, 174 enterprises were approved for their equitisation plans by competent authorities, of which only 36 of 128 enterprises are subject to equitisation and capital divestment under Dispatch No. 991/TTg-ĐMDN, Decision No. 26, Decisions No. 99/348/DN and Decision No. 1232, hitting 28% of the plan.

The Ministry of Finance also noted that in the final months of 2020, there are 92 enterprises required for equitisation and 249 required for capital divestment under the plan.

To accelerate the progress of equitisation and capital divestment, the Government, the Prime Minister and the Steering Committee for business renovation and development have regularly pay attention and give timely instructions to agencies to promote and improve the efficiency of the equitisation and capital divestment.

In addition, the Government has issued Resolution No. 01/NQ-CP dated January on major tasks and solutions to carry out the plan for socio-economic development and State budget estimate in 2019 and Resolution No. 73/NQ-CP on Government’s action programme to implement Resolution No. 60/2018/QH14 to improve and boost the implementation of policies and laws on management and the use of State capital and assets at enterprises and equitisation of the State-owned enterprises.

However, due to the unpredictable developments of the Covid-19 pandemic affecting production and business activities and other activities that makes it difficult for the equitisation and capital divestment of enterprises. Therefore, the progress of equitisation and capital divestment from now to the end of 2020 is hardly feasible.

Also according to the Ministry of Finance, in addition to promoting equitisation and capital divestment, the request for equitised State-owned enterprises must register for trading or listed on the stock market is a solution to create more supply for the stock market.

The Ministry of Finance has also reported to the Prime Minister on this issue, proposing solutions to promote the listing and registration for trading of equitised State-owned enterprises. Particularly, governing ministries and agencies are required to strictly follow the Prime Minister’s instructions and review and classify equitised State-owned enterprises that have not yet registered for trading or listed on the stock market and enforce discipline to the representative of State capital at enterprises.

Equitisation vital for stock market growth The successful equitisation and capital divestment of State owned enterprises SOEs would create benefits that boosted the ...

For handling of violations of regulations on listing and registration for trading of equitized State-owned enterprises, the ministry has sent notices to 251 equitised State-owned enterprises of acts of violations of the listing and registration for trading. So far, the Ministry of Finance has also issued decisions to sanction 42 enterprises and warn 23 others.