Page 4 - Bia 1

summary

14 COVER STORIES 10 ECONOMY & POLICY
SOE EQUITIZATION AND DIVESTMENT ACCELERATING DISBURSEMENT

WELL BEHIND TARGETS OF PUBLIC INVESTMENT

The process of State-owned enterprise (SOE) equitization has not Disbursement of public investment this year is estimated at
only stagnated but is slower than when it started. The number over VND700 trillion ($30.4 billion), an increase of about
undergoing the process is insufficient and analysts and managers VND200 trillion ($8.7 billion) compared to previous years.
believe equitizations to date have questions over quality. The Therefore, Standing Deputy Prime Minister Pham Binh
biggest obstacle in equitization and the divestment of State capital Minh asked nine ministries and sectors posting slow
in the 2016-2021 period was land and enterprise valuations. SOEs disbursement to focus on addressing obstacles. The Prime
also lack incentives to boost the process. Minister also signed Decision No. 548 on the establishment
of six working groups to inspect and remove difficulties and
accelerate disbursement this year. Agencies have sought
permission from the Prime Minister to extend the
16 COVER STORIES investment plan for the central budget in 2021 and 2022,
and requested that the Ministry of Construction consider
BOOSTING THE and submit to the government plans and solutions to
remove difficulties facing construction contractors hit by
EQUITIZATION PROCESS high construction material prices.

The process of equitization and divestment at State-owned
enterprises (SOEs) has slowed beyond reason. Analysts have said
that in addition to economic fluctuations, fear of the process,
institutional difficulties, and confusion reign supreme at
enterprises, while problems also exist relating to land. In the
immediate future, it is necessary to take early action during the
economic recovery process to complete tasks assigned by the
government. If the difficulties and obstacles can be resolved, the
process must return to a reasonable level of implementation.

28 BANKING & FINANCE
Are bAnks’ cApitAl

rAising plAns feAsible?

During the recent annual general meeting of shareholders
season, more than 20 banks approved plans to increase their
charter capital through dividend payments, stock issuances
to existing shareholders, and capital sales to strategic
investors. However, with the stock market struggling, analysts
believe that such plans will be difficult to fully implement in
2022. As the stock market remains unpredictable, some 22
per cent of banks’ capital increase plans will be affected.

4 kinh tế Việt nAm | số 21 | ngày 23/5/2022 www.vneconomy.vn