State-owned enterprises (SOEs) have divested nearly 2.3 trillion VND
(108 million USD) from non-core businesses in the first nine months of
2014, the Ministry of Finance has revealed.
The figure was
3.7 times higher than that of 2013 but accounted for only 10.2 percent
of the total proposed divestment of 22.5 trillion VND (1 billion USD) by
2015.
Sectors for divestment include securities, banking, insurance, and real estate.
Most of the divestment activities took place in the banking sector.
However, since bank stocks have lost their previous attraction, SOEs had
to forego profits by selling at prices lower than or equal to the
initial purchase prices for these stocks.
For example, Vietnam
National Shipping Lines is trying to sell its 2.52-percent stake in
Maritime Bank for 15,650 VND a stock, approximately the buying price
several years ago.
After deducting initial investment costs,
divesting costs and taxes, proceeds from SOEs’ divestments will be
recorded in their profits, the ministry said.
Meanwhile,
proceeds from dividends made in 2013 will be added to the State budget.
According to the State Capital Investment Corporation, the proceeds are
worth 19 trillion VND (892 million USD), of which about 80 percent will
go to the State.
Under the schedule of equitising SOEs, a total
of 432 corporations shall be privatised in 2014 and 2015. However, only
71 SOEs have been equitised so far this year.
The ministry
explained that the remaining SOEs are large corporations with complex
financial operations and large investors, and therefore divestments
there require lengthy preparations.
“The major reason for the
lateness is the unstable stock and real estate markets, causing
unfavourable conditions for divestment and equitisation,” the ministry
revealed in a report. It added that the economy grew slowly, so the SOEs
had failed to improve their operations and financial status.
The ministry said the total profit of SOEs in 2013 reached 171.67
trillion VND (8 billion USD), a 17-percent year-on-year increase.
However, parallel to that are doubtful debts that increased by 15.8
percent to 10.3 trillion VND (483.5 million USD).-VNA