Challenges in the process of equitization
Equitization is the process of converting enterprises in which the state does not need to hold 100% of the capital to the form of enterprises with many owners to mobilize capital from domestic and foreign investors. The purpose of this transformation is to improve financial capacity, innovate technology, innovate management methods to promote the role of state-owned enterprises into leading birds, leading and spreading to other member states. other economic.
According to the general assessment, most of the enterprises after equitization have increased efficiency in production, business, budget payment and income of employees. Being well aware of these benefits, Power Generation Corporation 1 (EVNGENCO1) has recently made many efforts in implementing the equitization roadmap, closely following the directions and instructions of the competent state agencies.
However, the general trend of the equitization of state-owned enterprises in the 2016-2020 period is behind schedule and EVNGENCO1 is not an exception to that trend. This is not necessarily a bad thing when it shows the prudence, publicity and transparency of enterprises, ensuring to meet the goal of increasing revenue for the State budget when conducting equitization, especially when the Gencos 1, 2, and 3 are all large state-owned enterprises. The larger the enterprises, the more cautious the equitization process must be done because successful equitization is not easy, the legal basis must be tight so as not to lose state assets. The number of shares sold accounted for a very small proportion compared to the number of shares offered for sale by Power Generation Corporation 2 which is also a very worthy result for EVNGENCO1 to pay attention to.
According to economic experts, another important reason for the delay in the equitization process is that the procedure for determining the land use plan takes a long time. EVNGENCO1 has continuously sent documents to the competent authorities requesting guidance on the implementation of this procedure, but due to many problems in current legal regulations, this process cannot be completed. Moreover, the situation of the Covid-19 epidemic is very complicated, greatly affecting the equitization work at EVNGENCO1.
Faced with that situation, after many discussions, the Steering Committee for Equitization of the Parent Company - EVNGENCO1 agreed and reported to the Committee for the Management of State Capital at Enterprises to consider and decide to adjust the time of determination. enterprise valuation of EVNGENCO1.
Duyen Hai Power Electricity Center
New expectations
In the second half of the year, the progress of equitization and divestment is expected to be faster, with the epidemic being controlled, the economy recovering and new regulations and regulations more open.
The Decree No. 140/2020/ND-CP of the Government issued at the end of 2020 has amended the problems in three decrees related to equitization and divestment, including: The Decree No. 91/2015/ND-CP, the Decree No. 126/2017/ND-CP and Decree No. 32/2018/ND-CP. At the same time, many new points have been added to remove bottlenecks related to the enterprise's land use plan, financial handling at the time of enterprise valuation and the time of official transformation into a joint stock company, and enterprise valuation, regulations on information disclosure, etc. The legal basis for equitization and divestment has basically been completed, it is expected that the progress of divestment and equitization will be accelerated and stronger in the coming time.
Facing the new conditions, EVNGENCO1 hopes to accelerate the implementation of its equitization roadmap. From the beginning of 2021, the Corporation has carried out many key tasks to realize this expectation.
Following the direction of the Ministry of Finance and the Group, EVNGENCO1 is carrying out procedures for transferring assets to the locality in the form of capital reduction and asset reduction. Member Council of EVNGENCO1 has issued a Resolution on the transfer of assets located on the land area to be returned to the locality in Uong Bi city, Quang Ninh province in the form of capital reduction and asset reduction. The Corporation has directed Uong Bi Thermal Power Company to carry out the transfer of assets to the locality. This is expected to be implemented as soon as June 2021.
On April 9, 2021, the assisting group of the Steering Committee for equitization of the parent company - EVNGENCO1 submitted to the Steering Committee the plan to use labor upon equitization and will be submitted to the Committee for Management of State Capital at Enterprises after having been passed through by the Steering Committee.