The Ministry of Finance (MOF) is planning to reduce the investments of State owned enterprises (SOEs) in non-core business fields, to 15 percent from the current 30 percent. However, 15 percent is still believed to be overly high, which will not help cut down the risky investments in the fields in which SOEs do not have advantages.Thirteen SOEs have been found as making heavy investments in the finance and banking sector, which is believed to be unfamiliar and risky to them, with the total investment capital of 10,700 billion dong. Thirteen other SOEs have been found as injecting 1300 billion dong in securities, and eight have poured money into the real estate sector, totaling 3754 billion dong. Enterprises between evil and deep blue sea Representatives of enterprises complain that lacking capital is now the biggest problem they are facing. Le Tien Truong, Deputy General Director of Vinatex, said that it has been finding it to arrange capital for investment projects since 2010, … [Read more...] about Tentative decision to restrict SOEs’ investments in non-core fields won’t help
Soes
MPI says SOEs make heavy, but ineffective investments
The most critical issue today is the ineffective use of the state's resources by the state owned enterprises (SOEs), which affects the quality of growth, development and competitiveness of the economy. The Ministry of Planning and Investment (MPI), which is drafting the plan on improving the efficiency of SOEs' operation to be submitted to the Prime Minister, has pointed out that the biggest problem of SOEs now is that they are wasting the resources. SOEs' investments don't have high efficiency… The MPI's report has pointed out that SOEs have been using more resources than private enterprises, but the values of the products made by SOEs are lower. In 2009, SOEs had 37.2 percent of the total capital, 44.8 percent of fixed assets and long term investment, but they only created 25 percent of the total revenue, 37 percent of pre-tax profit and 20 percent of industrial value. According to the General Statistics Office, in 2009, SOEs had to use 2.2 dong in capital to … [Read more...] about MPI says SOEs make heavy, but ineffective investments
SOEs reform plan caught in dilemma
HANOI - Officials in charge of a draft plan on reforming state-owned enterprises find themselves stuck in a dilemma: while they think SOEs operate inefficiently and should be reshuffled, statistics shows another way. This paradox was the major spirit of the Ministry of Planning and Investment's meeting held on Wednesday in Hanoi on Wednesday to discuss the process of reforming State-owned enterprises. According to the General Statistics Office, SOEs' profits have increased, their businesses have become better and the number of SOEs suffering losses has declined year after year. GSO statistics in 2010 put the whole sector's revenue rise at 15.3% and pre-tax earnings growth at 15-18%. Its pre-tax profit accounted for nearly 40% of the total in Vietnam's corporate sector. The number of loss-making SOEs made up 12.3% compared to the average rate of 25% in Vietnam's economy, according to GSO. Central Institute of Economic Management vice head Tran Xuan Lich, who is in … [Read more...] about SOEs reform plan caught in dilemma
HNX raises over $115 mln in sold-out auctions of SOE stakes
Some 28 of 34 auctions conducted by the Hanoi Stock Exchange (HNX) in 2017 sold out shares offered by state-owned enterprises (SOEs), raising over 2.63 trillion VND (115.72 million USD) for the State. Investors watch stock movements in the Vietcombank Securities Company.According the HNX, the volume earned the State about 933 billion VND (41.05 million USD) in share premium and more than 30 percent of the sold-out auctions had the bid prices 1.5 – 2.5 times higher than the starting prices.The total volume of SOE shares offloaded in HNX was estimated at about 321 million in 2017.It was the third year SOE stocks have been offloaded in the HNX. While 2015 saw the boom in initial public offerings (IPOs) of SOEs with 64 SOEs offering shares to the public for the first time, representing 71 percent of the total auctions in HNX, public auctions for SOE share offloading accounted for 71 percent last year.The most attractive auctions were sales of shares in the Vietnam Oil and Gas Group … [Read more...] about HNX raises over $115 mln in sold-out auctions of SOE stakes
HNX raises over 115 mln USD in sold-out auctions of SOE stakes
Investors watch stock movements in the Vietcombank Securities Company. (Photo: VNA) Hanoi (VNA) – Some 28 of 34 auctions conducted by the Hanoi Stock Exchange (HNX) in 2017 sold out shares offered by state-owned enterprises (SOEs), raising over 2.63 trillion VND (115.72 million USD) for the State. According the HNX, the volume earned the State about 933 billion VND (41.05 million USD) in share premium and more than 30 percent of the sold-out auctions had the bid prices 1.5 – 2.5 times higher than the starting prices. The total volume of SOE shares offloaded in HNX was estimated at about 321 million in 2017. It was the third year SOE stocks have been offloaded in the HNX. While 2015 saw the boom in initial public offerings (IPOs) of SOEs with 64 SOEs offering shares to the public for the first time, representing 71 percent of the total auctions in HNX, public auctions for SOE share offloading accounted for 71 percent last year. The most attractive auctions were … [Read more...] about HNX raises over 115 mln USD in sold-out auctions of SOE stakes