Prime Minister Nguyen Xuan Phuc chairs the meeting on restructuring and equitisation of SOEs (Photo: VNA)

Last year, the government adopted an action plan on restructuring, reforming, and improving the performance of state-owned enterprises, particularly economic groups and corporations from 2016 to 2020. But the equitization process has been slow.

Solutions

The restructuring of SOEs has been affected by global and regional economic developments. Because most equitized enterprises involve multiple businesses, it takes time to restructure them. Tran Van Minh, a National Assembly deputy for Quang Ninh province, said:“We need to determine which areas the State needs to get a grip on and which areas need social capital. State ownership of businesses must be kept reasonable in order to attract equity investors.”

Economists have called for refinement of laws, mechanisms, and policies on restructuring SOEs. The government must adopt a policy to speed up equitization by investing state capital and managing the capital and assets in equitized enterprises. The rights and responsibilities of corporate officers, equity owners, and state management agencies must be identified. Mai Thi Anh Tuyet, a deputy for An Giang province, said: “It’s urgent to have an independent agency instead of the People’s Committee oversee the use of state capital. An agency representing state capital in enterprises must be set up. Managers of SOEs must be treated in accordance with market economy mechanisms and work contracts. Payroll and income systems must operate like private businesses.”

Accelerated equitization

Incentives and sanctions for organizations and individuals responsible for business registration and listing after equitization will be finalized soon. Once aggressive measures are taken, restructured enterprises will have good conditions to thrive. Deputy Prime Minister Vuong Dinh Hue, head of the National Steering Committee for Enterprise Reform and Development, said:“We cannot sacrifice quality for progress, because our ultimate goal is the benefits gained from equitization and better business management and performance. Business values must be reevaluated by the State Audit.”

The restructuring of SOEs aims to make economic groups and corporations focus on their core business areas, providing essential products and services for society.