The Prime Minister has asked the Ministry of Finance, State Bank of Vietnam and other relevant ministries to reconsider the plan on state-owned enterprise equitisation for 2007.
The Prime Minister asked for this work to be done right in the second quarter of 2007. Special attention must be paid to big corporations, including state-owned banks, economic groups and general corporations, which have high equitisation value. This will help ensure the success of the equitisation of enterprises while positively impacting the capital market and the national economy.
Also connected to this issue, several days ago, at a meeting on investment in the first six months of the year, the Bank for Development and Investment (BIDV) officially proposed a rearrangement of the timing for the equtisations and IPOs of big corporations.
Tran Bac Ha, Director General of BIDV, said that the excess of IPOs would lead to the oversupply of commodities, harming the stock market and causing losses to the state.
Vietnam planned to equitise 26 general corporations in 2007; a series of IPOs to be made by big corporations, including Vietcombank (the Bank for Foreign Trade of Vietnam), Vietincombank (Vietnam Industrial and Commercial Bank), and BIDV were scheduled to have been made.
In the newly released instruction on implementing state-sourced capital investment, the Prime Minister has also asked ministries, economic groups and general corporations to carry out measures to push up the disbursement rate of construction projects.
The Prime Minister has asked ministries to check legal regulations relating to the implementation of projects. Ministries have been instructed to amend the regulations if necessary, and promulgate documents timely, which will help remove obstacles for investors.
According to the Ministry of Planning and Investment, the pace of the disbursement of state-sourced investment and development capital has been very slow, just fulfilling 42.6% of the yearly plan, while the disbursement of capital for key construction works has just fulfilled 30% of the plan.
The State Bank of Vietnam, the Vietnam National Administration of Tourism and Electricity of Vietnam, Vinh Long and Hau Giang provinces, had very low disbursement rates, less than 10%, while 36 ministries, branches and localities had disbursement rates of between 10-30% of the yearly plan.
Source: VNE
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