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Vietnam confused with equitisation goals: expert
Dr Vu Dinh Anh from the Ministry of Finance, while talking about the reasons behind the slow state-owned enterprise equitisation process, said that Vietnam does not have a clear and constant goal for equitisation.
Only 28% of the 2008 plan on state-owned enterprise equitisation has been fulfilled. Experts have blamed the sharp decline of the stock market on the slow equitisation. What is your viewpoint on this?
The equitisation plan has not been fulfilled since 2006 and I think that the process has been going slow simply because of the policies, rather than because of the fall of the stock market.
Previously, equitisation aimed at strengthening corporate governance skills. However, since the stock market boomed, equitisation’s aim has become ‘bringing more money to the state.’
At this moment, we, the researchers, do not understand what goals the state has set for the equitisation process.
The Ministry of Finance has not declared an equitisation program for the next year. However, according to the Ministry of Planning and Investment, the state plans to equitise 19 state-owned corporations in 2009. How will do you think the program will go in the next year, in the context of the lackluster stock market?
We have not seen any new policy from the Government that aims to speed up equitisation. I personally think that in the next year, the State will not set equitisation as a priority task, as it will still have to deal with macroeconomic challenges. I think it is not highly possible to see the equitisation process complete by 2010, as previously expected.
The State now relies on state-owned economic groups and general corporations in stabilizing the national economy. Do you think that this is a factor that has slowed down the equitisation process?
Maybe. However, I think we should look into the issue from another angle. Most enterprises have become more effective in their operation after equitisation. Then, a question has been raised about why not equitise state-owned general corporations to make them stronger?
I think we still need to discuss about what the equitisation process is for.
Why should we re-discuss the goals of equitisation after so many years?
It seems that after a period of equitisation, the state has forgotten what we equitise enterprises for. It seems that we have become confused with the goals set before.
Why do you think most state-owned enterprises do not like listing on the bourse?
Because they do not need capital, as they can mobilize capital from other channels. For example, if rice export companies need capital to export rice, they will be given capital or guaranteed to borrow capital from foreign sources. I have learnt that some banks have been asked to lend capital to businesses.
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In the period from 1992-1997, Vietnam had 3,756 state-owned enterprises equitised, most of them were small-scale enterprises. In 2007, Vietnam equitised 116 state-owned enterprises, fulfilling 21% of the plan. Meanwhile, 73 enterprises were equitised in 2008, fulfilling 28% of the plan.
In 2008-2010, Vietnam plans to restructure 1,535 state-owned enterprises, including 948 enterprises to be equitised.
As such, Vietnam will have to equities 800 enterprises in 2009 and 2010, which proves to be a heavy task. To date, the equitised capital accounts for less than 15% of total capital of state-owned enterprises.
(Source: the Ministry of Finance) |
TBKTVN
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