Strict punishment on slow equitization, divestment of State capital proposed

SGGP
By December 24, 2020, Vietnam had merely achieved 27.3% of the equitization plan for State-owned enterprises (SOEs) in 2020, while 89 SOEs had not completed equitization. This is a content stated in the report which the Finance and Budget Committee sent to the Standing Committee of the National Assembly recently.
According to the report, in 2020, some enterprises finalized their equitization slowly, causing difficulties for the operation of joint-stock companies, affecting the divestment process at enterprises. The contribution efficiency of SOEs was low. Many localities, ministries, and agencies have many enterprises that must be equitized but have not yet followed the plan.

The coordination between the owner’s representative agency and local authorities in building and approving the plan for rearrangement and handling of houses and land according to Decree No.167/2017/ND-CP regulating the rearrangement and handling of public property was not good and remained sluggish. For instance, Hanoi only equitized 13 enterprises, achieving 14 percent of the plan. Ho Chi Minh City equitized 38 enterprises, accounting for 40 percent. The Committee for Management of State Capital at Enterprises equitized six enterprises. The Ministry of Construction equitized two corporations.

The committee proposed the Government speed up the process of equitization, divestment of State capital, and rearrangement of SOEs in production and business fields where non-State economic sectors operate more efficiently. Along with that, the Government should strictly punish organizations and individuals that are slow to implement the process of equitization and divestment of State capital.

By Anh Thu – Translated by Bao Nghi

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