Hanoi (VNA) - Prime Minister NguyenXuan Phuc has issued a directive to speed up the restructuring of State-ownedenterprises (SOEs) during the 2016-2020 period.

The overhaul of SOEs in the previous five-yearperiod helped reduce the number of SOEs, promote divestments from non-corebusinesses and increase the operational efficiency of SOEs. However, therestructuring progress remained stagnant; the State still held controllingstakes in many sectors, and the efficiency of SOEs was low, compared to its resources,according to the decree.

In addition, there was a lack of regulations onaccountability in evaluating the value of SOEs, along with a failure inseparating State ownership and management performances at SOEs.

In the next five-year period, the Prime Ministerasked relevant ministries and organisations to gear up efforts for hasteningthe restructuring of SOEs, with a focus on quality, rather than quantity.

Accordingly, the Ministry of Finance wasassigned to issue, in the first quarter of 2017, decrees which aimed atclarifying accountability of consultancy organisations in evaluating Stateassets at SOEs for privatisation and divestment, as well as raising mechanismsto attract strategic investors.

Of note, the Ministry of Planning and Investmentmust propose a special committee which would function as the owner of Stateassets at SOEs, for the Government’s consideration this month.

Other relevant amendments must be introduced bythe second quarter of this year, to ensure compliance with the laws on Enterprise,Investment and Management and Use of State Capital Invested in Production andBusiness at Enterprises.

The decree said that appropriate mechanisms mustbe raised to attract competent strategic investors and reduce State stakes to alevel that could enable change in corporate management. In addition, businessstrategies must be developed for each SOE, while their brand values must beaccounted as an asset privatisation occurs.

The Prime Minister also asked to increasesupervision to prevent losses to State assets during the restructuringprogress, affirming the determination to handle loss-making SOEs andinefficient projects.

Accountability in the restructuring of SOEs mustbe clarified, while violations must be strictly handled, the decree said.

Between 2011 and 2015 almost 600 SOEs wereequitised, or 96 percent of the targeted number. The number of SOEs has sincefallen from some 6,000 to over 700 during the past 15 years.

In December, the Prime Minister issued Decision58/2016/QD-TTg which fixes the rate of State ownership in individual firms thatare to be equitized, rather than the sector-wise rate the Government used tofix earlier.

Accordingly, the Government will hold 100 percentstakes at 103 SOEs, while 137 others will be equitised from 2016-20.-VNA