Some 92 percent of Vietnamese state capital yet to be equitized by Q1

BY  | FROM  | 2017-06-12 16:10

Up to 92 percent of Vietnamese state capital has not been equitized by the end of the first quarter of 2017, according to the latest report by the country's National Assembly.

As of March 31, some 96.5 percent of state own enterprises (SOEs) are subject to equitization but equitization value has totaled only 8 percent, the report said.

The figures imply mainly small SOEs have been privatized, and that the private sector has attended insignificantly in fields which the state does not need to hold.

Meanwhile, the Ministry of Planning and Investment estimated that drastic divestment can bring the state coffer a massive fund of 15-20 billion U.S. dollars during 2016-2010.

Admitting failure in coordinating the capital withdrawal in line with scheduled targets, the Ministry of Finance said privatization of large-scale SOEs needs to attract investors with good governance and financial capacity, and great amount of time is needed as a result.

By the first quarter this year, the country has equitized eight state-owned enterprises and one public service institution, announcing the value of 41 businesses but yet to approve their equitization projects and has been estimating the value of 108 others.

A business under Vietnam National Coffee Corporation has been dissolved and another's value has been approved for equitization.

About capital withdrawal, the government has sold state capital with book value of 3.18 million U.S. dollars at 10 enterprises and reclaimed 3.22 million U.S. dollars.

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