Obstacles to the valuation of the land use rights of State-owned enterprises (SOEs), especially those with multiple land lots in different parts of the country, have slowed the equitization of SOEs, said Minister of Finance Dinh Tien Dung at a question-and-answer session before the National Assembly (NA) today, October 31.

A gas station of PetroVietnam Oil Corporation (PV Oil), which is one of State-run enterprises to have gone public this year 

NA deputy Quach The Tan from Hoa Binh Province said the management of land owned by SOEs before and after their equitization remains inefficient. In particular, some land lots belonging to these firms were not taken into account when their value is determined, causing losses for the State budget.

Deputy Tan proposed Minister Dung provide solutions to the problems.

In response, Minister Dung admitted that only 12 of the 85 SOEs that planned to undergo equitization this year have gone public, partly due to land-related issues.

He noted that equitized SOEs’ land use rights were evaluated in line with the land law at the time.

In addition, the municipal and provincial governments must assume responsibility for the use and management of land owned by SOEs after their equitization. Some equitized enterprises have converted their land use purposes without returning the land to the competent agencies to hold tenders for the land use rights, which violates the Land Law.

The ministry had proposed the Government issue Decree 126 on the conversion of SOEs into joint stock companies, which took effect from January 1.

Accordingly, enterprises’ land use must be approved by the competent agencies before and after the equitization. Equitized firms must use their land lots in line with the approved plans.

SGT