Inspectorate urges HCM City to speed up restructuring of SOEs

Rang Dong Light Source and Vacuum Flask JSC. — Photo courtesy of the firm HCM City needs to speed up equitisation to restructure state-owned enterprises and improve their efficiency, according to the Government Inspectorate. The equitisation of state companies is progressing at a tardy pace, a recent report by the inspectorate says. It also has shortcomings in terms of allocation of assets for equitisation, determination of enterprise value, determination of the ratio of state capital post-equitisation, and selection of strategic investors. According to the Ministry of Finance's corporate finance department, many SOEs in the city are large and have complicated financial and land ownership structures, and so equitisation, especially evaluating their assets, is not easy. As of 2016 the city had 62 SOEs fully owned by the state, according to the Government Inspectorate. Phan Thi Thang, vice chairwoman of the city People's Committee, has sought the HCM City Business Management Innovation Board's advice to remove obstacles and speed up equitisation of SOEs. Equitisation plans for 2016-20 had not been fruitful, she admitted. She said the People's Committee would continue to inspect the use of public properties and real estate to ensure they are used in accordance with guidelines. “It is… Read full this story

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