Equitization and divestment are both slow, there are still reasons for slow approval of land use plans.
The arrangement, innovation and development of state-owned enterprises is one of the four major contents related to the questioning content at the 8th session of the 15th National Assembly that the Ministry of Planning and Investment reported to the National Assembly delegates.
All 19 enterprises on the equitization list are still continuing to implement.
According to the approved plan in Decision 1479/QD-TTg approving the Plan to restructure state-owned enterprises and enterprises with state capital in the period of 2022 - 2025 , the whole country must equitize 19 enterprises and restructure 5 enterprises.
By the end of September 2024, 19 enterprises had their equitization plans approved. Of these, 5 enterprises had established Steering Committees and support teams; 14 enterprises were still taking steps to prepare for implementation.
Of the 5 enterprises approved for restructuring, 3 have completed the merger and 2 are implementing the restructuring plan in the direction of 1 enterprise dissolving and 1 enterprise merging.
In an overall assessment, the Ministry of Planning and Investment clearly stated: "The progress of restructuring and equitization of state-owned enterprises in the 2022 period is still slow."
Among the causes, obstacles and limitations listed in the Report, the top one is the delay of localities in approving land use plans, especially for enterprises with land in many localities. This has led to the slow approval of equitization decisions of enterprises.
In addition, the Ministry of Planning and Investment also pointed out that the regulations on equitization of state-owned enterprises have not yet resolved a number of problems related to the contents of determining enterprise value (such as determining land and asset values, land arrangement and handling, etc.), leading to a prolonged time for developing equitization plans and failure to complete them on schedule.
In particular, the Law on Management and Use of Public Assets was issued in 2017, but the guiding documents for its implementation are still inadequate and not specific, thus affecting the arrangement and handling of public assets at state-owned enterprises.
On the business side, some businesses are facing difficulties in production and business activities, negative equity, social insurance debts, affecting the equitization process. For example, the Educational Equipment One Member Co., Ltd. (Ministry of Labor - Invalids - Social Affairs), the Agricultural Products and Foodstuffs Import-Export One Member Co., Ltd. (Agrexport - Ministry of Agriculture and Rural Development).
Some ministries and localities have not been active in implementing the equitization of enterprises under their management; the process of developing and approving decisions related to the equitization process is still prolonged.
Slow divestment, many businesses do not reach the target
The situation is a little better with the divestment results.
In the period from 2022 to present, ministries and localities are required to complete divestment at 53 enterprises. By the end of September 2024, 21 out of 53 enterprises have completed divestment.
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| The divestment of state capital at Viglacera Corporation was not completed as planned in 2023. |
Of the remaining enterprises, 18 have hired valuation consultants to determine the enterprise value. 14 enterprises are developing a divestment plan or are selecting a consulting unit to determine the enterprise value for divestment.
However, the Ministry of Planning and Investment reported that among the enterprises that have completed divestment, there are still some enterprises that have not met the approved ratio, because no investors registered to buy, or only sold at a lower ratio than required in Decision 1479/QD-TTg. These cases include Hai Phong Road Joint Stock Company, Hai Phong International Trading Company Limited, Tien Phong Equipment Industry Joint Stock Company, Tuyen Quang Forestry Processing Joint Stock Company, and Binh Phuoc Construction Joint Stock Company.
Some enterprises that are developing divestment plans have reported difficulties and problems related to land (such as the cases of Phu Tho Waste Treatment Joint Stock Company, Ha Long Quang Ninh Urban Environment Joint Stock Company, Quang Ninh Waterway Management Joint Stock Company, and Quang Ninh Bridge and Lagoon Joint Stock Company).
Some enterprises encountered difficulties in determining the starting value, leading to difficulties in implementation, forcing localities to propose moving to the next stage or suspending divestment, such as the cases of Viglacera Corporation - Joint Stock Company; Vung Tau Urban Construction and Environmental Services Joint Stock Company, Hai Thanh Limited Joint Venture Company, and Road I Joint Stock Company.
It must also be emphasized that Decision 1479/QD-TTg clearly stipulates the roadmap, implementation time and completion of divestment. As soon as the Decision is issued, the representative agencies of the owners have the basis to proactively follow and develop a divestment plan, ensuring the approved progress.
Furthermore, investors believe that the disclosure and transparency of information about enterprises divesting capital from enterprises has created confidence among domestic and foreign investors in the determination of the Vietnamese Government to restructure state-owned enterprises.
However, through the synthesis of reports from ministries and localities, it is shown that the divestment situation is still very slow and not completed according to the approved plan. The reasons are determined from both the mechanism, policy and the enterprise as well as the owner's representative agency.
Reporting to the National Assembly, the Ministry of Planning and Investment emphasized that regulations on divestment still have many problems in practice and need specific guidance, leading to delays in the development and approval of divestment plans and multiple adjustments.
Some enterprises still have outstanding issues regarding finance, assets, land, and debts that have not been completely resolved, leading to a prolonged process of determining the value of the enterprise. Determining the value of shares offered for sale still encounters many difficulties, as well as organizing the selection of a capable and experienced valuation consulting unit that takes a lot of time.
Along with that, due to the influence of the world situation, economic, political and national security instability has strongly impacted the market, causing investors to be apprehensive, especially for businesses operating in some industries, public service sectors, and businesses with low profit margins. As a result, some cases of divestment have not been successful, although ministries and localities have actively developed and implemented divestment plans.
To promote the progress of equitization and divestment of state-owned enterprises in the coming time, the Ministry of Planning and Investment proposes:
+ Continue to seriously implement the directions of the Government and the Prime Minister.
+ Ministries, localities, economic groups, corporations, and state-owned enterprises, according to their assigned functions and tasks, continue to promote preparation and complete necessary procedures to serve the implementation of equitization and divestment of state capital in enterprises...
+ Owner representative agencies need to carefully evaluate to build, plan, and implement equitization and divestment plans for state capital in enterprises and organize implementation to ensure suitability and feasibility, ensuring no loss or loss of state capital and assets;
Urge enterprises directly managing and using real estate to declare and report, and develop plans to rearrange real estate facilities according to regulations to submit to competent authorities for approval.
+ The People's Committees of provinces and centrally run cities shall promptly give their opinions on the plan to rearrange and handle houses and land of central enterprises located in their localities at the request of the Ministry of Finance, ministries and central agencies to ensure the progress of approving the plan to rearrange and handle houses and land to serve the development of land use plans when implementing equitization.
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