2018 is hoped to see a strong wave of equitisation of State-owned enterprises (or SOE). However, the first half of the year is yet to see as strong movement as expected. There are even concerns that the national targets set for SOE equitisation may not be realized without drastic measures.
2018 is set to be high time for equitisation and restructuring of State-owned Enterprises by the Government. Specifically, 85 firms are expected to be successfully equitised.
However, only five enterprises have completed on schedule, showing a gloomy picture of SOE equitisation.
Assoc. Prof. Hoang Van Cuong, Member of National Assembly Finance & Budget Committee: “A list of enterprises which need equitising for each year has been published, but the actual works done are humble.”
According to experts, the high time for equitisation was actually 2017 when highly expected enterprises, including PV Power or PV Oil, completed IPO early, while some other firms like Mobifone choose 2019 to be equitised.
The aforementioned market factors partly explain the snail’s pace in SOE equitisation this year.
Nguyen Viet Duc, Expert from MB Securities Company: “The market eyes on large companies only while small and medium sized ones have little focus on.”
Besides the above mentioned reasons, it’s undeniable that parent companies and leaders of the target firms have been reluctant to speed up equitisation for fear of losing their power and financial resources.
Assoc. Prof. Hoang Van Cuong, Member of National Assembly Economic Committee: “Lots of management agencies of the enterprises are afraid of losing their position over the firms, so they hesitate.”
Nguyen Quyet Tien, Head of Corporate Finance Agency under the Ministry of Finance :”We need to accelerate examination and monitoring of Stated-owned enterprises’ restructuring and equitisation. As long as we are straightforward with the work, it can be done on schedule.”
In order to boost equitisation, more forces should be placed on monitoring works. More measures should be taken to fulfill the yearly equitisation target.-VNA