Construction Ministry urged to comprehensively restructure 16 SOEs during 2016-20

Tuesday, 2017-02-07 10:58:57
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The MOC will facilitate the restructuring of 16 SOEs under its management during the 2016-20 period.
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NDO—Deputy Prime Minister Vuong Dinh Hue on February 6 held a meeting with relevant ministries and agencies on the restructuring of State-owned enterprises (SOEs) and enterprises with State capital contribution with the Ministry of Construction (MOC) as the State owner’s representative during 2016-20.

According to MOC Minister Pham Hong Ha, the ministry will facilitate the restructuring of 16 enterprises (12 JSCs and four single-member limited liability companies) between 2016 and 2020 with a focus on finishing privatisation and continuing divestment with a reasonable roadmap.

They are DIC, Song Hong, Bach Dang, Viglacera, Viwaseen, Hanoi Construction, Licogi, Lilama, CC1, FICO, VNCC, COMA, HUD, Song Da, IDICO and VICEM Corporations, of which 12 enterprises have been equitised by the MOC, while four corporations, namely Song Da, IDICO, HUD and VICEM, have recently been recognised in the list of SOEs in need of reorganisation during the period under Decision No. 58/2016/QD-TTg by the Prime Minister.

The MOC proposed to retain the current rate of State capital contribution in the Licogi Corporation and transfer it to the State Capital Investment Corporation (SCIC) since Q1 2017.

For the ten JSCs undergoing equitisation, the MOC will carry out State capital divestment at a rate of 36% or even 0% and transfer to the SCIC or specialised agencies responsible to represent the State capital in 2018-2019.

For the remaining five corporations (Lilama, VICEM, Song Da, Viglacera and HUD), as they are holding large amounts of assets or have been engaged in the construction of national key projects, they will deploy divestment to lower the State capital holding to the dominant rate of 51% by 2020. Since 2021, they will further divest and transfer the right to represent State capital following regulations.

Minister Ha also suggested the Prime Minister to merge Ha Long and Song Thao Cement JSCs with VICEM and issue additional shares to raise their registered capital, as the two have operated well.

At the working session, leaders from relevant ministries expressed agreement with the MOC and the government’s policy of seriously restructuring and renovating SOEs, especially Decision No. 58 by the Prime Minister.

Deputy Prime Minister Hue, who is Head of the Steering Committee for Enterprise Innovation and Development, asked the MOC to complete its divestment roadmap and transfer of the right to represent the State capital on time to maximise the State’s benefits.

However, for the ten JSCs, the ministry should sell out the State capital by 2018, the government official stressed, adding that the group of the five above-mentioned corporations should divest the State capital rate to less than 51% by at least 2019.

He also asked the MOC to review and urge enterprises that have implemented initial public offerings (IPO) to be listed on the stock market in accordance with regulations, while collaborating with the Ministries of Finance and Planning and Investment to strengthen enterprise management to timely solve issues related to equitisation.

In addition, the MOC should closely control the equitisation of subsidiaries under its corporations to strictly manage the State capital selling plan, Deputy Prime Minister Hue added.

Deputy Prime Minister Vuong Dinh Hue chairs the working session with the MOC and relevant ministries and agencies in Hanoi on February 6. (Credit: VGP)