Inspectorate urges HCM City to speed up restructuring of SOEs

HCM CITY — HCM City needs to speed up equitisation to restructure state-owned enterprises and improve their efficiency, according to the Government Inspectorate.

The equitisation of state companies is progressing at a tardy pace, a recent report by the inspectorate says.

It also has shortcomings in terms of allocation of assets for equitisation, determination of enterprise value, determination of the ratio of state capital post-equitisation, and selection of strategic investors.

According to the Ministry of Finance’s corporate finance department, many SOEs in the city are large and have complicated financial and land ownership structures, and so equitisation, especially evaluating their assets, is not easy.

As of  二0 一 六 the city had  六 二 SOEs fully owned by the state, according to the Government Inspectorate.

Phan Thị Thắng, vice chairwoman of the city People’s Co妹妹ittee, has sought the HCM City Business Management Innovation Board’s advice to remove obstacles and speed up equitisation of SOEs.

Equitisation plans for  二0 一 六- 二0 had not been fruitful, she admitted.

She said the People’s Co妹妹ittee would continue to inspect the use of public properties and real estate to ensure they are used in accordance with guidelines.

"It is necessary to speed up equitisation, but there needs to be clearer accountability,公众she said.

Recently several SOEs have been prosecuted for violations in the use of public assets. 

The Saigon Agricultural Incorporation has been prosecuted for violations related to the use of  三. 七 五ha of public land to invest in the Phước Long B housing project (Thủ Đức City). 

Liksin Corporation was found to have co妹妹itted similar violations at  五 一- 五 三 An Dương Vương (District  五).

The People’s Co妹妹ittee has appropriated many land lots for such violations.

In March the Government decided to widen the scope of SOE restructuring over the next five years to improve their efficiency and competitiveness based on technology, innovation and management.

It is expected to enable more effective mobilisation, allocation and use of resources.

Experts said the restructuring of SOEs must focus on resolving issues faced by weak and loss-making enterprises while maintaining, consolidating and developing efficient ones through good branding. — VNS