Some solutions to strengthen the equitization of state-owned enterprises in vietnam

Nội dung text: Some solutions to strengthen the equitization of state-owned enterprises in vietnam

1. SOME SOLUTIONS TO STRENGTHEN THE EQUITIZATION OF STATE-OWNED ENTERPRISES IN VIETNAM Tran Thi Bich Nhan Hung Vuong University Pham Thi Minh Phuong Hung Vuong University Phung Thi Thu Ha Hung Vuong Gifted High School Abstract Equitization in Vietnam is expected to be an important solution to improve the performance of state-owned enterprises, support the capital market and contribute to reducing public debt pressure. The equitization of state-owned enterprises has achieved remarkable results, but some limitations need to be overcome in the coming time. This study is based on data from the reports of the Steering Committee for Enterprise Renovation and Development, Government Decrees and the Prime Minister's Decision to analyze the status of equitization of state-owned enterprises in Viet Nam. On the basis of research results, the article proposes solutions to promote equitization of state-owned enterprises such as: improving institutions, promoting in implementation organization and implementing solutions in corporate governance, monitoring, inspection and disclosure of information. Keywords: Equitization, solution, state-owned enterprises 1. The urgency of the research problem Joint-stock company is a progressive form of organization in a market economy. In many countries and territories around the world, the arrangement of converting a number of businesses into joint stock companies, towards forming strong multinational corporations, effectively operating in the domestic market and the international market is an effective way to innovate the state economic sector. Previously, in the central planning and subsidy mechanism, Vietnam has established too many state-owned enterprises, now moving to a market economy, state-owned enterprises need not be present in all fields of the economy. State-owned enterprises are only established and maintained in key sectors, key areas, which have the effect of paving the way and enabling other economic sectors to develop, regulate and turn the economy into socialist market economy. Grasping the general trend of 259
2. the world as well as the actual situation of Vietnam, from 1990 up to now, the State has taken measures to rearrange state enterprises to reduce the number of state enterprises such as: Dissolution, merger, sale, equitization of state-owned enterprises, in which equitization is an important measure of concern to the Party and the State. After nearly 30 years of implementing this policy, the number of state-owned enterprises decreased significantly. If in the 1990s, there were about 12,000 state- owned enterprises nationwide, in 2001 there were about 6,000 state-owned enterprises, in 2011 there were 1,369 state-owned enterprises, in 2016 there were 718 state-owned enterprises, so far this number there are only 500 enterprises with 100% state capital in 11 ministries, sectors and sectors of the economy. It is expected that by 2020, the whole country will have only about 100 state-owned enterprises. Enterprise restructuring, with a focus on equitizing state-owned enterprises, is considered one of the three pillars of economic restructuring. Equitization is expected to be the most practical solution to improve the performance of state-owned enterprises, support the capital market and contribute to reducing public debt pressure. However, the progress of equitization of state-owned enterprises in the country has been slow. 2/3 of the equitization process under the Prime Minister's Decision No. 58/2016/QD-TTg has passed, but the results are quite modest. Specifically, 2018 was considered a pivotal year for this issue, but only 23 enterprises were approved for equitization (the plan was 64 businesses). The equitization of our state-owned enterprises is now a topical issue that is receiving the attention of all levels, sectors and society. Every year the Government outlines the equitization plan in detail, as well as issuing many regulations on equitization; The National Assembly issued a resolution on this issue The legal corridor was complete, but the process was very slow, many difficulties were difficult to remove. Therefore, it is necessary to have timely solutions to accelerate the process of equitization, to achieve the proposed socio-economic development objectives. 2. Equitization and the policy of equitizing a state-owned enterprise According to the State Enterprise Renovation and Development Board, equitization is the process of transforming state enterprises into joint stock companies, in which organizations and individuals inside and outside enterprises are allowed to buy a part or all of the value of the equitized enterprise. Equitization of state- owned enterprises is a specific measure of the process of reforming state- owned enterprises, the process of transforming state- owned enterprises into joint- stock companies. Equitization of state-owned enterprises is the process of ownership transformation from enterprises where the State holds 100% of charter capital to multi-owned enterprises, including the ownership of employees in 260
3. enterprises and the ownership of other organizations and individuals, operating in the form of joint stock companies. Equitization is a policy that has been proven to be a clear effect on improving the efficiency of state-owned enterprises. This policy has been paid due attention, legalized and recently focused on achieving better results. Implementing this policy, the National Assembly has adopted a number of important laws such as Land Law, Enterprise Law and Law on management and use of state capital invested in production and business in enterprises The issuance of sectoral criteria to arrange state-owned enterprises is also implemented to ensure suitability and consistency with the provisions of specialized laws such as Electricity Law, Telecommunications Law, Railway Law, Maritime Code The Government, ministries, ministerial-level agencies and provincial-level People's Committees have promulgated legal documents and directing documents for implementation in order to institutionalize policies and guidelines of the Party in arranging and transforming state-owned enterprises. Decision No. 143 / HDBT of the Council of Ministers issued on May 10, 1990 selected a number of small and medium enterprises to try to convert into joint stock companies. This is a pilot phase of equitization of state- owned enterprises. After the pilot phase with positive results, the period of extensive equitization was carried out. To effectuate this policy, on July 17, 2012, the Prime Minister issued Decision No. 929/QD-TTg on the approval of the project on restructuring state-owned enterprises, focusing on economic groups and state-owned corporations in the period of 2011-2015, clearly stating the tasks: "Implementing the objectives of arranging and equitizing enterprises according to approved plans; consider this as a key task in 2012 - 2015”. Decision No. 58/2016/QD-TTg December 28, 2016 was issued attach with Annex I on Criteria for classification of state-owned enterprises and enterprises with state capital and Appendix II on List of State- owned enterprises arranged in the period 2016 - 2020 as a basis for classification, arrangement existing state- owned enterprises and continue to sell the State capital of these in order to speed up the reorganization and renewal process till 2020. This period, 240 state- owned enterprises needed to be equitized. Decision approving the plan to restructure state- owned enterprises under the direction of the Prime Minister in Decision No. 707/QD-TTg dated 25/5/2017 as a basis for organizations to implement. According to the project, " Continuing to restructure the entire state-owned enterprises: reorganizing enterprises; improve financial capacity; innovation of management and technology; reforming 261
4. organization and managing human resources; product structure, production and business sectors, development strategy to improve operational efficiency" with the goal of "Complete equitization of 137 enterprises; striving to the end of 2020, the State only holds 100% capital in 103 enterprises”. Resolution No. 12-NQ/TW dated June 3, 2017 of the 5th Party Central Committee Executive Committee Meeting XII affirming that "Restructuring and reforming state-owned enterprises under the market mechanism is a regular and continuous process with appropriate implementation methods and routes. Continue to restructure state- owned enterprises in the direction of resolutely equitizing and selling capital in enterprises where the State does not need to hold or not need to hold dominant shares, including effective businesses; at the same time, thoroughly handling, including bankruptcy of weak state-owned enterprises”. Objective by 2030: "Most state- owned enterprises have a mixed ownership structure, mainly joint stock enterprises". This Resolution once again affirmed that equitization of enterprises is inevitable. According to Directive 01/2019/CT-TTg on strengthening the direction and promotion of restructuring, reorganizing, reforming, equitizing and divesting State capital in state- owned enterprises and enterprises that State holding capital, signed by the Prime Minister on January 5, 2019, showed the determination of the Party and the State in the restructuring of state-owned enterprises and equitization of enterprises in order to raise the operation efficiency of state- owned enterprises. Thus, equitization is the right policy of the Party and the State, necessary to rearrange state-owned enterprises, improve the operational efficiency of enterprises, contributing to the socio-economic development of the country. 3. Research Methods The study mainly collects secondary data sources from documents, reports, plans, resolutions and decisions of the National Assembly, the Government, the Prime Minister, the Steering Committee for Enterprise Renovation and Development, Government Information Portal on the status of equitization of state- owned enterprises over time. These are the data and documents selected for the purpose of analysis, illustrating the actual situation of enterprise equitization. Secondary resources are put into processing and analyzing in order to draw assessments and conclusions with scientific grounds for the research content. Data collected after being processed by Excel tool to calculate indicators reflecting the state of equitization of state- owned enterprises. After that, the study uses descriptive and comparative statistical methods to analyze data to clarify the fluctuation of the analysis criteria during the periods . 262
5. 4. The status of equitization of state- owned enterprises in Vietnam 4.1. The period before 1998 Implementing the policy of equitization of state- owned enterprises , in 1990, the Council of Ministers (now the Government) issued Decision No. 143/HDBT to select a number of small and medium enterprises to try to convert into joint stock companies. This is the pilot phase. As a result, two enterprises in 1990-1991 were equitized. In 1991, Chairman of the Council of Ministers Decision No. 202 date 06/08/1992 required each national ministries and each province selected from 1-2 to try equitizing. As a result, by April 1996, there were 3 state-owned enterprises managed by the central government and 2 local state- managed enterprises being equitized. From the experience of the above seven equitization cases, in 1996 the Government decided to conduct equitization on a larger scale. Decree 28/CP of the Government dated 07/5/1996 required ministries, central branches and provincial and municipal governments to make a list of state-owned enterprises they managed to be equitized until 1997. The spirit of Decree 28/CP was selecting businesses that the State no longer needs to hold 100% of the capital as an object. Decree No.25/CP dated 26/3/1997 Government allowed the leadership ministries, branches and localities have more power in the conduct of equitized enterprises are chosen to try. Accordingly, for enterprises with capital of VND 10 billion or less, leaders of ministries, branches and localities had the right to organize equitization on the basis of Decree No. 28/CP. As a result of this extensive equitization pilot phase, 25 state- owned enterprises have been transformed into joint stock companies. 4.2. Period 1998-2010 After the two pilot phases of the equitization, the Government decided to officially implement the equitization program. On June 29, 1998, the Government issued Decree No.44/1998/ND-CP about transforming state enterprises into joint stock companies. In addition, Directive 04/2002/CT-TTg dated 08/02/2002 on the continued restructuring, innovation, development, and improve the efficiency of state enterprises, and Decree No. 64/2002/ND-CP on June 19, 2002 on transforming state-owned enterprises into joint- stock companies opened up a new phase of equitization - a massive phase of implementation. After the Decree 44/1998/ND-CP was applied until December 31 of the year 2002, which added 834 State-owned enterprises were equitized. In January 2004, the Central Committee of the Communist Party of Vietnam, the 9th session, held its 9th session, where there was discussion and decision to promote the equitization of state- owned enterprises. At the end of 2004, the Government issued Decree No.187/2004/ND-CP on transforming state-owned company into a joint stock company and when this Decree took effect, 263
6. the equitization phenomenon "Closed" was previously resolved by auction of shares. Among 30 companies listed on Ho Chi Minh City Stock Exchange Center (now Ho Chi Minh City Stock Exchange) on October 31, 2005, 29 companies were equitized state enterprises. During this time, the equitization process went into depth and reaches certain results. Number of equitized enterprises was 2.649, more than 3 times the previous years. According to the report of the Steering Committee for Renewal and Development of State enterprises, to date 31/12/2005, the country has implemented 2,242 equitized state enterprises, with a total capital of the enterprise equitization amounted to VND 17,700 billion, equal to 8.2% of all State capital in enterprises. On average in joint stock enterprises, the State holds 46.5% of charter capital; officials and employees in the enterprise hold 38.1%, non- enterprise investors hold 15.4%. Through equitization , about VND 12,411 billion has been mobilized from non-social individuals and organizations to invest to enterprises . The State has recovered about VND 10,169 billion. Exploiting, mobilizing and effectively using these capital sources would create favorable conditions to accelerate the process of national industrialization and modernization. Compared with the pilot phase, the expansion phase had additional object was equitized enterprises with large-scale, the State corporations. Yet until Decree 109/2007/ND-CP, 77% of equitized capital was just under 10 billion. Particularly for the equitization of enterprises where the State did not hold any proportion in the charter capital, were small enterprises with the State capital under 1 billion and inefficient enterprises. This type of small company accounted for nearly 30% of the enterprises that the State equitized. Decree No.109/2008/ND-CP promulgated to promote equitization for large-scale state-owned enterprises. Since implementing Decree 109/2007 / ND-CP and Decree No. 109/2008 / ND-CP until the end of 2010, there have been 356 equitized enterprises, bringing the total number of state-owned enterprises to be equitized in the period. There were 3.839 businesses. Table 1. The status of enterprise equitization in the period of 1998-2010 Year Number of businesses and business units 1998-2002 834 2003-2006 2,649 2007-2010 356 Total 3,839 Source: Steering Committee for innovation and enterprise development (2011) 4.3. Period from 2011 to 2015 In order to promote the equitization of large-scale enterprises, on July 17, 2012, the Government issued Decision No.929/QD-TTg approving the project "Restructuring state- owned enterprises, focus on State Corporations, period 2011 - 2015”. 264
7. The legal framework for SOEs innovating continued to be strengthened, such as the Government's Resolution No.15/NQ-CP of March 6, 2014, on a number of measures to boost the equitization of state enterprises and withdraw State capital in enterprises mentioned comprehensive action plan to boost the divestment of state- owned enterprises. At the same time, two important related laws including the Law on the Management and Use of State Capital invested in production and business and the Enterprise Law (amended) were also approved at the National Assembly session in October 11, 2014. The Law on Management and Use of State Capital invested in production and business was expected to enhance transparency and accountability in investment, manage State capital in production and business activities, increased the level monitoring the performance of state- owned enterprises of the National Assembly and related parties. The Enterprise Law (revised) encouraged entrepreneurship, created a more transparent business environment and created a level playing field for all types of businesses. Dated 18.06.2014, the Prime Minister signed Decision No.37/2014/QD-TTg of "promulgate criteria, lists of classified State enterprises" aimed at boosting the restructuring and renewal of existing state enterprises. This decision identified and classified state- owned enterprises according to the percentage of charter capital held by the State. With the legal framework completed, the results of enterprise equitization in the period of 2011-2015 obtained some certain results with 499 enterprises. Thus, in the 2011-2015 period, equitization of state- owned enterprises reached 90% of the plan. According to the report of equitized state-owned enterprises in the period of 2011-2015, the business results of 2015 increased more than the year before equitization, namely: charter capital increased 72 %; total assets increased by 39%; equity increased by 60%; revenue increased by 29%; pre-tax profit increased by 49%; submit budget to increase by 27%; The average income of workers increased by 33%. Table 2. The status of enterprise equitization in the period of 2011-2015 Year Number of businesses and business units 2011 19 2012 20 2013 77 2014 144 2015 239 Total 499 Source: Steering Committee for Enterprise Renovation and Development (2018) 265
8. 4.4. Period from 2016 to 2018 In order to overcome the limited in the equitization in previous periods, Resolution No.12- NQ/TW dated June 3, 2017, the Fifth Conference of the Party Central Committee XII and Resolution No.60/2018/ QH14 dated June 15, 2018 of the XIV National Assembly promulgated in order to correctly and fully realized the market principles and complied with the law to ensure publicity and transparency, resolutely repelled restrictions, negatively slowing down the process of equitization and divestment. Decree No. 126/2017 / ND-CP on transforming state-owned enterprises and one- member limited liability companies invested by state-owned enterprises with 100% charter capital into joint-stock companies has been issued and enforced from 01/01/2018 has been amended and supplemented to improve the quality and responsibility of consulting organizations in determining the value of State capital and assets at enterprises to share State capitalization and divestment. This decree stipulated that equitized enterprises are responsible for reviewing all land areas under management and use to prepare and complete approval of land use plans in accordance with the law on land and related laws before the time of equitization decision In addition, Decree No.167/2017/ND-CP regulating the reorganization and handling of public assets contributed to pushing quickly equitization, removing previous problems. Resolution No. 60/2018 / QH14 on the continued improvement and promoted the implementation of policies and laws on management and use of state capital and assets in enterprises and equitization of state enterprises has brought out the duties and solutions mainly to overcome these limitations, obstacles and gaps, to implement efficient policies and legislation on the management and use of state capital and assets in enterprises and equitization of state- owned enterprises. With the legal framework is finalized, the period 2016-2018 was 147 equitized enterprises (SOEs 70 central and 77 local SOEs) with certain results with total enterprise value was VND 440,290,374 million; The value of State capital was VND 204,689,479 million. Table 3. Situation of enterprise equitization in 2016-2018 period Unit: Million VND Number of Enterprise Value of Charter Year State capital enterprises value State capital capital 2016 66 40 206 598 27 328 917 27 190 635 13 464 196 2017 69 370 336 187 161 947 296 163 437 792 86 915 571 2018 12 29 747 589 15 413 266 18 348 159 11 158 119 Total 147 440 290 374 204 689 479 208 976 586 111 537 886 Source: Steering Committee for Enterprise Renovation and Development (2018) 266
9. General assessment of the situation of equitization, divestment, Deputy Prime Minister Vuong Dinh Hue, Head of the Steering Committee said that in the past 3 years, the Government and the Prime Minister have just completed the law and policies in the direction of increasing openly, transparently, closely, close to reality, and deploying the plan of equitization and divestment in each enterprise. As a result, equitization and divestment have been strictly implemented by ministries, localities and enterprises, maximizing the interests of the State, contributing to supporting the development of private enterprises. However, the Deputy Prime Minister and the leaders of the ministries and members of the Steering Committee all said that the progress was slower than the plan of 2018 (64 businesses). Thus, more than 50 enterprises in 2018 have not been equitized. 4.5. Evaluating enterprise equitization in the last time In 2018 in particular and the first three years in the period of 2016-2020 in general, in the situation of improving the law and mechanisms and policies in a more efficient and coherent manner, both developing, approving and implementing equitization plans for each year and the period 2016-2020, the equitization of state- owned enterprises and enterprise development has achieved some positive results. Accumulated in the first 3 years of the period 2016-2020, the whole country equitized 147 enterprises, an increase of 34% compared to the total number of equitized enterprises in the first three years of the period 2011-2015. The total size of State capital was re-determined to reach VND 204,689,479 million, equivalent to 108% of the total value of State capital in equitized enterprises in the period of 2011-2015. Total revenue from equitization and divestment in the first 3 years of 2016-2020 reached 212,304 billion VND, 2.71 times higher than the total revenue from equitization and divestment of the whole period 2011-2015. Enterprises after equitization operated effectively and fundamentally innovated corporate governance, having many positive impacts on the country's socio-economic development process, increasing competitiveness and promoting stock market, financial market development. However, in addition to the achieved results, the equitization of state-owned enterprises in Vietnam had some limitations that need to be learned and overcome in the coming time. Some ministries, branches and localities have not completed the equitization plan in 2018 in accordance with the Prime Minister's approval, must adjust the implementation plan to suit the reality; In the process of equitization, the State capital was lost; Some businesses after equitization have not been effective; not yet registered for trading and listing on the stock exchange. 267
10. Cause of limitation: Firstly, some ministries, branches, localities, economic groups, state corporations have not really seriously implemented the plan of equitizing state-owned enterprises under the direction of the Prime Minister. The role, awareness, responsibility of the head of the enterprise was not high, not yet drastic in renewing the operation of the enterprise, not being transparent and transparent in accordance with the law, ensuring the principle market, anti-group interest in equitization and state divestment. Secondly, in production and business activities, some individuals and businesses infringed market principles, not public and transparently financial information. Particularly, some leading individuals violate the law affecting the efficiency of production and business activities of enterprises, leading to losses of capital in some projects. Thirdly, some state-owned enterprises have been slow to amend and supplement the economic and technical norms, consumption of materials and raw materials to match actual business conditions, thereby slowing management reform enterprises to improve production and business efficiency. Fourthly, the labor force in state-owned enterprises has been still crowded, labor productivity was low, skilled workers were insufficient and weak; Outdated equipment status, not keeping up with the advanced technology of the world and the requirements of the Industrial Revolution 4.0; Organizational structure in state- owned enterprises has been still cumbersome, ineffective. Fifthly, the equitization process of state- owned enterprises needed a lot of time to deal with financial, land and labor problems, which made the equitization period last longer. Especially, the issue of establishing land legal documents by the local People's Committee was slow, increasing the implementation time compared to the regulations, leading to enterprises to adjust the equitization progress. Sixthly, the ratio of state capital in implementing the equitization plan of state- owned enterprises remained high, thus reducing the attraction for investors to buy shares, affecting the success of equitization. 5. Some solutions to promote the equitization of state-owned enterprises 5.1. About institutions In 2019 and 2020, completing the review and reporting to the Government to submit to the National Assembly for promulgation of Laws of amendments and supplements related to equitized enterprises such as: Enterprise Law; Law on 268
11. management and use of state capital invested in production and business at enterprises; Law on cadres and civil servants; Bankruptcy laws; Labor Code Along with that, the ministries and agencies should urgently submit to the Government and the Prime Minister to issue new Decrees to replace some old Decrees which are no longer suitable as Decree No. 99/2012/ND-CP dated November 15, 2012, Decree No. 130/2013/ND-CP, Decree No. 172/2013/ND-CP, 69/2014/ND-CP, 128/2014/ND-CP and Decision No. 35/2013/QD-TTg, 74/2013/QD-TTg. 5.2. About organization of implementation The ministries, branches, localities, economic groups and state corporations urgently complete the approval or submit to the competent authorities for approval the plans to restructure enterprises in the management domain according to regulations. in the Prime Minister's Decision No. 707/QD-TTg, clearly stating the progress, the implementing agency and the responsible person. Associate the results of the implementation of rearrangement, innovation and efficiency improvement of state enterprises with the evaluation of the responsibilities of the heads; continue to renovate the appointment and dismissal of heads of state enterprises. The heads of the ministries, branches and localities shall have to urge and strictly implement the criteria for classification of State enterprises and the list of State enterprises to be arranged in the 2016-2020 period already approved by the Prime Minister. issued in Decision No. 58/2016/QD-TTg; carry out equitization in accordance with the plan in Official Letter No. 991/TTg-ĐMDN on July 10, 2017, Decision No. 1232/QD-TTg dated August 17, 2017. State-owned enterprises under equitization should urgently review all land areas under management and use to formulate land use plans in accordance with the Land Law and submit them to People's Committees of provinces and cities directly. The Central Government gives opinions on plans and land prices for the competent authorities to approve before organizing the valuation of equitized enterprises in accordance with the provisions of Decree No. 167/2017/ ND-CP dated 31/12/2017 and Decree No. 126/2017/ND-CP dated November 16, 2017. Completing the valuation of enterprises when equitizing. Enterprise valuation is understood to be widely acknowledged as a detailed investigation and assessment of the company's activities in order to determine the value and potential of a business. This is a very important activity when equitizing. In all the legal documents (Decrees, Decisions) of the Government, there are contents on enterprise valuation, suitable to the objectives and context of each stage. In the coming time, this content still needs to be improved to ensure, on the one hand, to avoid the loss of State capital and on the other hand, attract investors, especially strategic investors. Moreover, it is 269
12. necessary to attract good techno-economic experts to ensure accuracy in the process of asset valuation (tangible and intangible), thereby, properly and fully determining the value businesses, stock prices are reasonable, attracting investors. 5.3. About corporate governance The Members' Council, the chairman, the board of leaders of economic groups, corporations, enterprises should immediately carry out the following tasks: Firstly, supplement or develop economic and technical norms for the activities of enterprises as a basis for management, inspection and supervision of enterprises. Secondly, build a plan to organize production and business, deploy restructuring the member enterprises to perform specialization, assignment, cooperation, non-spreading investment and dispersion of resources; avoid internal competition towards merger, consolidation of member enterprises doing business in the same industry; focus on the main business lines and related industries to directly serve the main business lines Thirdly, innovation of corporate governance in all aspects, strengthening internal control and auditing, contributing to improving autonomy and self- responsibility in production and business; improve the efficiency of capital use, competitiveness and sustainable development. Fourthly, consolidate the management apparatus on the basis of streamlining and compacting; fostering and improving the level of enterprise management officials to meet the management requirements in the market mechanism. At the same time, arrange leaders, managers and representatives of the state capital to have good moral qualities and professional capacity to perform well the role of state owner representative in enterprises. Fifthly, improving the quality of labor in enterprises, the focus is on highly skilled technical workers to improve the productivity of each labor and the productivity of the entire enterprise. Sixthly, actively investing in technology innovation, purchasing machinery and equipment in accordance with production and business requirements. The procurement of machinery and equipment and technology is discussed and decided by the Board of Directors on the basis of calculating what businesses need to buy and what is suitable for production and business conditions and financial situation of no company The calculation and decision process takes place urgently and decisively to meet the requirements of time and progress without having to rely on anyone's approval. This allows state-owned enterprises after privatization to seize the 270
13. opportunity to expand production and business, create conditions to improve product quality, competitiveness and reputation in the market. 5.4. About supervision, inspection, publicity and transparency Strengthening inspection, inspection, supervision, auditing, not letting state capital and property losses occur in the process of equitization of state enterprises; Supplementing the contents of inspection and inspection of the responsibility of the head of the unit in the observance of administrative discipline when implementing the equitization plan at the enterprise; responsibility of the leader in organizing and completing annual business and production activities; Supplementing the inspection list for enterprises that are late in the final settlement at the time of transferring from state-owned enterprises to joint-stock companies. Periodically publicize information on the progress and results of the equitization of state-owned enterprises, clearly stating that the unit name is completed, the name of the unit is still behind schedule as a basis for appreciate of equitization schedule, promptly remove difficulties and obstacles during the implementation process. Conclude Equitized SOEs always get the attention of the Party and State of Vietnam, especially in the period of international economic integration and towards building a true democracy of the people, under the supervision of the people and towards the people. The reality of nearly 30 years of equitization of state- owned enterprises has proved that this is a right policy and needs to be focused in the coming time. To complete the enterprise equitization plan, it is necessary to synchronize many solutions such as: Complete the Law system, issue necessary legal documents; Strictly implement approved equitization schemes; business management innovation; strengthen supervision, inspection as well as publicity and transparency of information on equitization In order to well implement the above solutions, there is a need for consensus of the authorities at all levels and the people in Vietnam. Reference materials: 1. Central Executive Committee (2017), Resolution No. 12-NQ/TW on continuing to restructure, innovate and improve the efficiency of state-owned enterprises. 2. Government (2017), Decree No. 126/2017/ND-CP on transforming state- owned enterprises and one-member limited liability companies invested by enterprises with 100% charter capital into joint-stock companies. 271
14. 3. Prime Minister (2016), Decision No. 58/2016/QD-TTg on criteria for classification of state- owned enterprises, enterprises with state capital and List of state- owned enterprises arranged in the period of 2016 - 2020 . 4. Prime Minister (2017), Decision No. 707/ 2017/QD-TTg on approving the project "Restructuring of state enterprises, the focus is economic groups and corporations for the period 2016-2020 ". 5. Prime Minister (2019), Directive No. 01/2019/CT-TTg on strengthening the direction and speeding up restructuring, reorganizing, reforming, equitizing and divesting State capital at State- owned enterprises and enterprises with State capital. 6. Phan Thi Thuy Linh (2017), Equitization of large-scale state-owned enterprises in Vietnam, Doctoral dissertation, Central Institute for Economic Management. 272