HCM City hastens SOE equitisation - HCM City hastens SOE equitisation - Website Ho Chi Minh City
Ho Chi Minh City is accelerating the restructuring of state-owned enterprises (SOEs), making them more flexible and active in operation.
To begin with, almost all the companies and corporations wholly owned by the municipal administration have restructured their trade step-by-step, said Le Manh Ha, Vice Chairman of the municipal People’s Committee.
During the 2014-15 period, the city will sell shares in 30 SOEs, out of 77 eligible businesses, he said, adding that a half of them will fulfill the process this year. Twenty-two firms have completed asset evaluation to date.
However, some difficulties hinder the process, such as a lackluster stock market which lowers the value of SOEs compared to their worth on paper, and the slow appraisal of firms, which makes investors lose interest.
To meet the target, HCM City has taken drastic measures. Businesses have signed commitments with the municipal People’s Committee on their progress and road maps.
In addition, the People’s Committee conducts monthly meetings with its steering board on SOE privatisation to swiftly deal with problems arising during the process, Ha said.
At a meeting with Deputy Prime Minister Vu Van Ninh late last month, the city proposed the Government hand over more control in arranging SOEs. Accordingly, the municipal people’s committee will set up a fund to support the arrangement and development of businesses in the city.
The HCM City People’s Committee has targeted equitising 188 state-owned enterprises from 2013-15 while 45 others will have to withdraw all state capital invested in non-core business.