SOEs equitization must not become privatization: HCMC chairman

State-own enterprise (SOE) equitization is to help businesses develop sustainably not to change into privatization and develop off that target, said Ho Chi Minh City People’s Committee chairman Le Hoang Quan on Tuesday.

Shirt making for exports at Viet Hung company (Photo: SGGP)

At a meeting with agencies and businesses on the SOE equitization this year, he required relevant agencies to report operation conditions of 11 firms equitized last year.

A representative of the Department of Labor, Invalids and Social Affairs said that these businesses had over 11,500 workers and equitization had reduced only 80 people.

The workers’ rights have been fully conducted and ensured, he added.

Average growth rate of the 11 firms was 10 percent--the minimum level set by the city, reported Head of the Business Finance Division under the Department of Finance Le Ngoc Thuy Trang.

She proposed the equitized firms to quickly register to trade and list on the stock market to make their operation more transparent.

Director of Home Affairs Department Truong Van Lam said that firms that are on the way of equitization should choose their strategic investors to be those who have been able to develop production and trade, not targeting land use rights.

These investors should be prevented from using land using right for other purposes, he said.

Therefore, the city authorities should hold a governing share portion in those locating in strategic positions, he said.

Agreeing with Mr. Lam, chairman Quan said that many SOEs were headquartered in favorable positions.

The equitization and capital withdrawal hence should carefully prevent some private businesses from owning major shares of these companies, taking control over properties and using them for other purposes.

SOEs should divest from some fields that are out from their major investing fields, and increase investment on significant fields of the city, the chairman said.

He ordered the Department of Business Finance and the Business Reform Committee to review and determine strategic land locations before SOEs conduct capital withdrawal.

Deputy Director of the Department of Planning and Investment Nguyen Hoang Minh proposed a close coordination among agencies to assist firms equalizing behind schedule to solve difficulties.

Mr. Quan instructed relevant agencies to review equitized firms’ situation to help them operate effectively. A steering group should be set up by June 15 for the purpose.

SOE equitization must attach to restructuring and rearrangement for better business effectiveness and labor productivity. The equitized companies should develop in accordance with their registered fields and the city’s economic structure changes, he said.

The process must not cause social disorder and must guarantee employment for workers, he added.

By Han Ni – Translated by Hai Mien

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