Why Government sticks to equitization

December 07, 2016 | 08:25

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Equitization aims to create a transparent business environment and impetus for businesses to operate effectively and increase competitiveness, said PM Nguyen Xuan Phuc.

PM Nguyen Xuan Phuc. Photo: VGP

The Government chief made the statement at the national teleconference on held in Ha Noi on December 6 to seek ways to accelerate rearrangement and renovation of State-owned enterprises (SOEs) from now to 2020.

The equitization process will reduce the scope of State economic sector while raising the effectiveness of the SOEs provided that State capital must be secured.

This process also helps liberate resources for higher growth but SOEs will not be equitized at all costs, which means the State will still not sell all stakes.

In the years to come, PM Phuc urged inferior levels to clearly identify the fields that the State should dominant shares.

He called for removal of all legal obstacles in the equitization process, development of evaluation systems for equitized enterprises, and application of international corporate governance practices.

PM Phuc also asked for handling lost-making enterprises and strictly controlling loans of SOEs.

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