The Government plans to establish a special agency to act as the ownership representative of State capital at State-owned enterprises by 2018.

Oil tanks of PVOil, a State-owned enterprise which has been undergoing equitisation

This was the solution highlighted in the Government’s recent action plan to implement Resolution No 12/ NQ/TW, dated June 3, of the fifth plenary meeting of the 12th Communist Party Central Committee on restructuring, renovating and improving efficiency of State-owned enterprises (SOEs).

The action plan raised a number of measures to fulfill the goals of restructuring and renovating SOEs in the 2017-20 period, including equitising 137 SOEs and completing divestment following the Prime Minister’s directive.

The focus would be on comprehensively handling inefficient SOEs and loss-making projects, particularly 12 projects under the Ministry of Industry and Trade.

The model of managing State capital at SOEs must be completed, especially with the foundation of a specialised agency to represent ownership of State capital at SOEs in 2018.

Statistics of the Ministry of Finance revealed that State capital at SOEs was estimated at 1.3 quadrillion VND (57 billion USD), but the lack of separation between ownership and management functions was causing inefficiency in using State capital, requiring the establishment of an agency specialising in representing ownership of State capital.

By 2030, Vietnam planned to develop SOEs - with most being joint stock companies and some reaching regional and international competitiveness in key economic sectors.

Decree No 91/2015/ND-CP, dated October 13, 2015, on investing, managing and using State capital would be amended, particularly regulations on divestment, which would raise new capital withdrawal methods suitable with the actual situation.

Under the action programme, the Government would continue to reduce holdings at SOEs during equitisation and accelerate listing on securities exchanges.

SOEs must be listed on exchanges within one year from their equitisation, according to current regulations.

Capital collected from equitisation and divestment would only be spent for the purpose of boosting investment, not for regular spending, with an estimated sum of 250 trillion VND planned to be added to the State budget for the medium-term investment fund in the 2016-20 period.

For loss-making projects, the Government was determined to clarify accountability and handle these projects thoroughly.

VNA