The equitisation of State-owned businesses from 2016-2019 fell behind schedule, putting heavier pressure on this year, according to the Ministry of Finance.
From 2016 to March 2020, 174 enterprises received approval for their equitisation plans. Those enterprises have total value of over 443.1 trillion VND (18.9 billion USD), nearly half of which is state capital.
A further 92 businesses need to be equitised by the end of 2020, but none were able to do so in March.
Regarding divestment, 397 billion VND (16.9 million USD) worth of State stake was sold in March, bringing in 772 billion VND (32.9 million USD) for the State coffer in the first three months of this year.
The finance ministry said a large number of businesses need to implement equitisation and divestment in 2020.
Besides, the impact of COVID-19 has made the stock market decline and delayed business production, seriously affecting the domestic and global economies.
To realize the target for 2016-2020, the ministry suggested improvements to institutional and legal frameworks on the management and operation of State enterprises./.
SOE equitization and divestment needs greater efforts from all concerned as yet another deadline seems likely to be missed.
As issues related to land use rights still hinder State-owned enterprises (SOEs) from executing equitisation on time, the finance ministry has built a draft to amend the current decree regulating land issues.