Four construction ministry corporations to be privatised in 2017

View of LICOGI 13 Tower in Ha Noi. The Ministry of Construction is urged to speed up divestment of State capitals and privatisation at corporations under it this year.-Photo sanvanphong.com

These include Song Da Corporation, Housing and Urban Development Corporation, Viet Nam Urban and Industrial Zone Development Investment Corporation and Viet Nam Cement Industry Corporation.

Hue said the process of State capital divestment, transfer of State capital ownership representation to the State Capital Investment Corporation (SCIC) and privatisation must be sped up to reduce State holdings to the levels determined under the Prime Minister’s Decision 58/2016/QD-TTg, dated December 28, 2016.

Accordingly, Hue agreed with the construction ministry’s proposal to reduce the State holdings at these corporations to a controlling level of 51 per cent by 2019 as they had huge assets or were participating in implementing key national projects. State stakes at Lilama Corporation would also be reduced to 51 per cent.

Divestments to allow the State to completely exit 10 corporations by 2018 must be implemented.

For the Infrastructure Development and Construction Corporation (LICOGI), the State holding at the corporation would be maintained at 40.71 per cent, while its capital ownership representation will be transferred to the SCIC in the first quarter of 2017, according to Hue’s request.

Divestments and privatisation must maximise benefits for the State while ensuring that the asset are managed properly and rights and benefits of employees are taken care of, Hue said.

Hue has also told the ministry to improve the management and supervision of divestments at its subsidiaries to prevent losses to the State’s assets and interests. Any violation must be dealt with strictly, he added.

The Ministry of Construction was acting as owner representatives of State ownership in 16 enterprises which held significant assets and land and provided jobs for dozens of thousands workers.