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Equitization of 432 SOEs to finish next year

Thursday, 23/10/2014
The Government has pledged to speed up a national equitization scheme to ensure that 432 State-owned enterprises (SOE) will go public by the end of next year as scheduled.

Presenting a report on socio-economic development in 2014 and tasks for 2015 at the eighth session of the 13th National Assembly in Hanoi City on Monday, Prime Minister Nguyen Tan Dung said the Government has taken multiple measures to step up SOE equitization, according to chinhphu.vn.

Besides, the Government has focused more to SOEs’ divestments from non-core business operations, improvement of business governance and efficiency, and removal of difficulties during the equitization and divestment processes.

Between January and September this year, 71 enterprises went public (compared to 74 firms last year) with 35 launching initial public offerings (IPO) on the local stock market. The value of 123 other candidates was determined and around 200 SOEs are expected to go public this year.

Among the 432 SOEs entitled to the equitization scheme, 368 companies have set up steering committees, 257 firms are assessing their value and 123 firms have got decisions to publicize their value.

The report said most SOEs are profitable, contributing more to the State budget.

Last year, total assets of State-owned groups and corporations increased 10.4% against the previous year, equity up 15% and revenue up 5%. According to the report, 101 out of 108 enterprises reported combined pre-tax profit advancing 21%.

In the first half of 2014, SOEs’ revenue, pre-tax profit and tax payment met 50.5%, 57% and 54% of the year’s respective targets.

In 2015, the Government aims to finish the equitization of 432 SOEs and continue divesting capital out of the sectors that the State does not need to hold a majority stake.

The Government will also encourage private investment in production and trading, support the development of private companies and cooperative economy.
 

Theo Saigon Times


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