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Ministry of Planing and Investment responds to some recommendations on equitization and divestment

Thu, 18 Jan 2018 10:22:42 AM GMT + 7    Print   Email   Share:

(Chinhphu.vn) - Through the receiving and responding system to the recommendations of the business, the Vietnam Association of Securities Business contributes a number of contents on the equitization, divestment of state-owned enterprises, extend room for foreign investors.

 

According to the Vietnam Association of Securities Business, for the capital mobilization through the process of equitization IPO, state capital diversion has not reached as expected. There are many reasons for this situation, including overlapping in legal regulations. IPO is only a process in the overall process of equitization or divestment of state capital and this process in addition to provisions of the Law on Securities but also must comply with the Law on the Management and Use of State capital, the Law on Enterprises.

In order for the stock market to have more state-owned enterprises after equitization and for the State to successfully implement the enterprise reform process, the focus should be on equitization and divestment, a comprehensive review of relevant laws is required. In particular, international practices should be considered so that foreign investors can participate in Vietnamese enterprises through the process of equitization and divestment of SOEs.

In addition, the Decree 60/2015 / ND-CP is considered as a positive move by the Government to open room for foreign investors. However, businesses are facing many problems in this issue.

The Ministry of Planning and Investment responds to the Vietnam Securities Business Association as follows:

For the sale of state capital in enterprises, issues raised by the Vietnam Association of Securities Business about the strategy, development orientation of the business, anti-losing brand and market share after the divestment are being assigned by the Government and the Prime Minister to the concerned agencies for studying and proposing mechanisms and policies for the elaboration of plans on capital diversion at big enterprises, good business operations and brand names.

With regulations on auction of shares according to the lot, the Ministry of Finance is studying to include this in the draft decree replacing Decree No. 91/2015 / ND-CP dated October 13, 2015 by the Government. on investment of state capital in enterprises and management and use of capital and assets at enterprises. However, the divestment of state-owned enterprises, in addition to maximizing profits for the state (selling at the highest price), should be harmonized with other objectives such as protection of Vietnamese trademarks, protection of workers ... while ensuring maximum transparency and transparency in the implementation process.

The bidding for selection of equitization consultancy, the Ministry of Planning and Investment has made many proposals in the process of amending Decree No. 59/2011 / ND-CP dated July 18, 2011 of the Government on the transformation of enterprises 100 State capital into joint stock companies on supplementing the regulations allowing state enterprises to formulate equitization plans is allowed to determine consultancy expenses, including the success fee for advice company; organizing overseas roadshows to attract international investors to participate in auctions; At the same time, it is being researched and deployed in the direction of international bidding in order to select reputable international consultancy organizations to formulate plans on sale of capital.

As regards the room for foreign investors, the contents of the Vietnam Securities Business Association reflect the reality of Vietnamese public enterprises. Therefore, in the process of capital withdrawal / equitization, based on the development objectives of the enterprise and the desire to attract foreign investors, enterprises and competent authorities should review the conditional business lines.

In cases where these business lines are not the main business lines and take a small proportion of the enterprises' operations, they may consider withdrawing capital and not making business registration for these business lines . This aims to create more favorable conditions for the attractiveness of foreign investors.

  • By : Online Newspaper of the Government / Translator: HaiYen-Bizic

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