The equitization and divestment processes are slow, and delays in approving land use plans remain a contributing factor.

The equitization and divestment processes are slow, and delays in approving land use plans remain a contributing factor.

The restructuring, reform, and development of state-owned enterprises is one of the four major issues related to the questioning session at the 8th session of the 15th National Assembly, for which the Ministry of Planning and Investment submitted a report to National Assembly deputies.

All 19 enterprises on the equitization list are still continuing the process.

According to the plan approved in Decision 1479/QD-TTg approving the Plan for restructuring state-owned enterprises and enterprises with state capital in the period 2022-2025 , the whole country must privatize 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 working groups; 14 enterprises were still in the process of preparing for implementation.

Of the 5 businesses approved for restructuring, 3 have completed the merger and 2 are implementing restructuring plans where one business is dissolved and the other will merge.

In its overall assessment, the Ministry of Planning and Investment clearly stated: "The progress of restructuring and equitizing state-owned enterprises from 2022 to the present is still slow."

Among the causes, obstacles, and limitations identified in the Report, the most significant is the delay by local authorities in approving land use plans, especially for enterprises with land in multiple localities. This has led to delays in approving the equitization decisions of these enterprises.

Furthermore, the Ministry of Planning and Investment also pointed out that regulations on the equitization of state-owned enterprises have not addressed some obstacles related to the valuation of enterprises (such as determining the value of land and assets, land arrangement and handling, etc.), leading to prolonged development of equitization plans and failure to complete them according to the assigned schedule.

In particular, although the Law on Management and Use of Public Assets was promulgated in 2017, the implementing guidelines are inadequate and not specific enough, thus affecting the arrangement and handling of public assets in state-owned enterprises.

On the business side, some enterprises are facing difficulties in production and business operations, experiencing negative equity, and owing social insurance contributions, which affects the equitization process. Examples include the One-Member Limited Liability Company for Educational Equipment (Ministry of Labour, Invalids and Social Affairs) and the One-Member Limited Liability Company for Agricultural and Food Products Import-Export (Agrexport - Ministry of Agriculture and Rural Development ).

Some ministries and localities have not been proactive in implementing the equitization of enterprises under their management; the process of drafting and approving decisions related to the equitization process is still protracted.

Divestment is slow, and many businesses are not meeting the target ratio.

The situation improved slightly with the divestment results.

From 2022 to the present, ministries and localities are required to complete divestment in 53 enterprises. By the end of September 2024, 21 of these 53 enterprises had completed divestment.

The divestment of state capital in Viglacera Corporation was not completed as planned in 2023.

Of the remaining businesses, 18 have hired valuation consultants to determine their business value. 14 businesses are developing divestment plans or are in the process of selecting a consulting firm to determine their business value for divestment.

However, the Ministry of Planning and Investment reported that among the enterprises that have completed divestment, some still did not meet the approved ratio due to a lack of registered investors or selling only a lower percentage than required by Decision 1479/QD-TTg. These cases include Hai Phong Road Construction Joint Stock Company, Hai Phong International Trade Company Limited, Tien Phong Equipment Industry Joint Stock Company, Tuyen Quang Forestry Products Processing Joint Stock Company, and Binh Phuoc Construction Joint Stock Company.

Some businesses that are developing divestment plans have reported difficulties and obstacles related to land (such as 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 businesses encountered difficulties in determining the initial valuation, leading to challenges in implementation and forcing localities to propose moving to a later stage or temporarily suspending divestment, such as the cases of Viglacera Corporation - Joint Stock Company; Vung Tau Urban Environment and Construction Services Joint Stock Company, Hai Thanh Limited Joint Venture Company, and Road Construction Company I Joint Stock Company.

It should also be emphasized that Decision 1479/QD-TTg clearly stipulates the roadmap, timeframe for implementation, and completion of divestment. Immediately upon the issuance of the Decision, the agencies representing the owners had a basis to proactively monitor and develop divestment plans, ensuring timely completion according to the approved schedule.

Furthermore, investors believe that the public disclosure and transparency of information regarding divestment in state-owned enterprises has built confidence among domestic and foreign investors in the Vietnamese government's determination to restructure state-owned enterprises.

However, a compilation of reports from ministries and localities shows that the divestment process is still very slow and has not been completed according to the approved plan. The reasons identified stem from both the mechanisms and policies, the enterprises themselves, and the agencies representing the owners.

In its report to the National Assembly, the Ministry of Planning and Investment emphasized that regulations on divestment still face many practical obstacles and require specific guidance, leading to delays and multiple adjustments in the development and approval of divestment plans.

Some businesses still have outstanding issues regarding finance, assets, land, and debts that have not been resolved, leading to delays in the business valuation process. Determining the value of offered shares also faces many obstacles, and the selection of qualified and experienced valuation consultants takes considerable time.

Furthermore, due to the impact of the global situation, economic, political, and national security instability has strongly affected the market, causing apprehension among investors, especially for businesses operating in certain public service sectors and those with low profit margins. As a result, some divestment attempts have failed despite the active efforts of ministries and localities in developing and implementing divestment plans.

To accelerate the equitization and divestment of state-owned enterprises in the coming period, the Ministry of Planning and Investment proposes:

+ Continue to strictly implement the directives of the Government and the Prime Minister.
+ Ministries, localities, economic groups, corporations, and state-owned enterprises, according to their assigned functions and tasks, shall continue to accelerate the preparation and completion of necessary procedures to facilitate the implementation of equitization and divestment of state capital in enterprises…
+ Owner-representing agencies need to carefully assess and develop plans for equitization and divestment of state capital in enterprises, and organize their implementation to ensure they are appropriate, feasible, and prevent the loss of state capital and assets;
Urge businesses that directly manage and use land and buildings to declare and report, and develop plans for rearranging their land and building facilities in accordance with regulations, for submission to competent authorities for approval.
+ The People's Committees of provinces and centrally-administered cities should promptly provide feedback on the plan for rearranging and handling the houses and land of central-owned enterprises located in their areas, as requested by the Ministry of Finance and other central ministries and agencies, to ensure the timely approval of the rearrangement and handling plan for houses and land, which will be used in the development of land use plans during the equitization process.

Source: https://baodautu.vn/co-phan-hoa-thoai-von-deu-cham-van-con-nguyen-nhan-cham-phe-duyet-phuong-an-su-dung-dat-d229502.html