According to the report on strategic shareholders in the equitization of SOEs, there are five reasons why strategic shareholders are not interested in the equitization of Vietnamese SOEs, slowing down the equitization process.The biggest obstacle is the state’s tight control over the ownership ratio of foreign strategic shareholders, reducing investment incentives for shareholders who are not guaranteed full rights in managing the businesses in which they invest.Only six out of 46 SOEs approved for equitization in 2011-2016 offered international investors over 50 percent of ownership and five of them have sold out such stakes.Foreign shareholders cannot hold stakes of more than 49 percent in SOEs as stated in Decree 60/2015/ND-CP. State enterprises in fishery- and shipping-related services set even lower foreign ownership rates, at 40 percent and 30 percent respectively.Other reasons include unreasonable evaluation of enterprises and prices of their stocks, lack of attractiveness … [Read more...] about How to make SOEs more attractive to foreign buyers
Soes
Pay at SOEs higher than FIEs
Pay at SOEs higher than FIEs Thuy Dung By Thuy Dung - The Saigon Times Daily HANOI - Employees at State-owned enterprises (SOEs) earn higher wages than their peers at foreign-invested enterprises (FIEs), according to a report by the Ministry of Labor, Invalids and Social Affairs. The ministry produced the report after a wage survey of 2,000 enterprises including 100% SOEs, FIEs and local private enterprises in 2015. The survey found that wages and additional benefits of employees at these firms have risen significantly this year compared to last year. According to the report, the monthly wage of laborers averages VND5.53 million in 2015, rising by 8% against last year. Particularly, employees of SOEs can get a monthly salary of VND7.04 million each, up 8%. Workers of FIEs can earn VND5.47 million a month, up 9% year-on-year, while the respective figures of workers at domestic private enterprises are VND4.99 million and 6%. As for total income, the ministry estimated the average … [Read more...] about Pay at SOEs higher than FIEs
More conditions planned for strategic investors of equitized SOEs
More conditions planned for strategic investors of equitized SOEs Minh Tam HCMC - A draft Government decree prepared by the Ministry of Finance has set out more conditions for firms which want to hold strategic stakes in State-owned enterprises (SOEs) when the latter go public. Article 6 of the draft decree on conversion of SOEs into joint stock companies stipulates that strategic investors must be active in the same sectors of the equitized SOEs where they want to buy shares and be profitable for two consecutive years. Besides, their equity in the latest year before the share acquisition as shown in audited financial reports must be enough to buy shares. The current Decree 59/2011/ND-CP says that strategic investors must be financially strong and have written pledges to invest and support equitized SOEs in the long run, transfer modern technology and train employees for the latter. They have to support equitized SOEs to enhance financial capability, governance and material … [Read more...] about More conditions planned for strategic investors of equitized SOEs
SOEs going unchecked
SOEs going unchecked Tu Giang By Tu Giang - The Saigon Times Daily HANOI – The Government is facing a severe lack of legal instruments to supervise operations of State economic groups and corporations, whereas this corporate sector is enlarging but performing poorly. This is reflected in a research project “Supervision and evaluation of State-owned enterprises (SOEs)” released on Thursday by the Central Institute for Economic Management (CIEM). “One serious problem is no agency or ministry is in charge of monitoring SOEs,” said Pham Duc Trung, deputy head of CIEM’s Committee for Enterprise Reform and Development. This is due to conflicting legal documents such as the Enterprise Law, the Government’s Decree 25 and decisions on State conglomerates and corporations 91, he pointed out. Under the current regulations, SOEs have to submit their quarterly and annual financial statements to State agencies, business registration offices and State … [Read more...] about SOEs going unchecked
SOE dividends yet to be fully counted, says ministry
SOE dividends yet to be fully counted, says ministryHong Phuc By Hong Phuc - The Saigon Times Daily HCMC – Exact earnings from dividends and real profits of State-owned enterprises (SOEs) will be announced in March or April but taxes collected from the sources have been based on interim results, said an official of the Ministry of Finance. The interim results are relatively correct, the official told the Daily while explaining the collection of over VND20 trillion worth of dividends and profits of SOEs in the last month of December. The source brought State budget collection to higher than last year’s target. The collection was made following the National Assembly’s (NA) resolution and the Government’s Decree No. 204/2013/ND-CP. Last year was the first time SOEs had to submit dividends earned from affiliates and associated firms to the State budget. Speaking at the press briefing a week ago, Minister of Finance Dinh Tien Dung said that Stage budget collection … [Read more...] about SOE dividends yet to be fully counted, says ministry