Dong Nai Food and Agricultural Products Import and Export Jsc. was one of the enterprises to apply equitization.
According to Provincial Board of Enterprises Innovation and Development; in term 2016 – 2020, there shall be 4 State-owned Enterprises to apply equitization and 16 Enterprises to apply State capital divestment. 100% State capital – Enterprise shall remain 51 – 65% of the State capital after equitization and the decision rights still belong to the State. Divestment enterprises can choose to completely or partly divest the State capital, depending on what field they are working on. If the State capital remains under 50%, the decision rights for all the operation belong to the shareholders.
*Buyers rushed to purchase stocks
In Dong Nai, the equitization and divestment processing State-owned Enterprises are mostly on schedule. The highly potential and developed enterprises are having a lot of convenience in the process. In fact, stocks from these enterprises attract many investors even before being brought into the stock exchange. And the “stock race” among these enterprises began as the result.
Mr. Phung Khoi Phuc – Deputy General Director of Dong Nai Food Industry Company (Dofico) said: “Well developed enterprises shall have advantages in the equitization and divestment process. Stocks shall be sold out soon after being published. And ineffective enterprises shall face many difficulties during the process” as he give the example of the equitization in Bien Hoa Construction Material Production and Construction Jsc. (under Dofico) that had sold out their stocks right after being brought into the stock exchange due to the high revenue that the enterprise had accomplished over the past years.
The Enterprise’s equitization and 35% State capital divestment were processed conveniently. The strategic investors offered right after the enterprise had planned for the equitization. Some investors are hoping the enterprises to divest up to 50% and willing to purchase the enterprise’s stocks despite high prices; so that they can take over the production and business control; as the clean water supply industry in Dong Nai is very promising.” – Said Mr. Pham The Tang – Head of Planning and Technical Office, Dong Nai Water Construction Jsc.
In some provinces, there are some loopholes during the equitization and divestment. The government shall soon have the solution for this issue or major loss shall incur. The situation is that investors shall rush to purchase stocks from not only the well-developed enterprises but also the lost one when they apply equitization and divestment.
Investor rushed to purchase lost enterprises’ stocks not because they want to recover the business but to own the ideal plots of land in ideal locations with cheaper price; as the more stocks they own, the higher chance they shall own the huge properties.
Mr. Nguyen Thanh Tung - Deputy Manager of Finance and Enterprise Branch Dong Nai (under Department of Finance) said: “Currently, the Governmental documents on assessing land use property in equitization and divestment enterprises are unclear; making a loopholes that cause the huge government money loss if these enterprises own the land in the ideal, valuable spots. The Brach has recently request the Department of Natural Resources and Environment to as soon as possible propose the issue to the Government for transparent solutions and regulations to avoid further loss.”