Việt Nam gains nearly $5.93 million from SOE sell-offs

Production activities at the Lào Cai Iron and Steel Factory. — VNA/VNS Photo

HÀ NỘI — The Government earns over VNĐ149 billion (US$5.93 million) from capital divestment at four State-owned enterprises during January–July, the Ministry of Finance (MoF) reports on August 12.

The People’s Committee of Hải Phòng City divested capital at three firms, and the Ministry of Construction at one company.

Regarding state management in corporate finance, the MoF advises state capital ownership representatives on profit and dividend distribution, appropriation establishment, and business classification in 2023. The ministry also addresses issues related to oil and gas projects and proposes measures to handle the Phương Nam Pulp Mill project, the Quý Xa iron ore mining and quarrying project, and the Lào Cai iron and steel plant.

As of July, competent authorities approved restructuring plans for 103 enterprises.

The Prime Minister previously approved a plan for 2022-2025 that calls for the equitisation of 19 enterprises and the reorganisation of five enterprises nationwide.

Out of those 19 with approved equitisation plans, only five have so far established steering committees and working groups to oversee the process. The remaining 14 enterprises are still in the preparatory stages of implementation.

According to the Ministry of Planning and Investment, the process of enterprise restructuring and equitisation of State-owned enterprises continues to face several obstacles and limitations. The main reasons cited for the slow progress are the delays in local authorities approving the appropriate land use plans, especially for enterprises that hold land across multiple localities. — VNS