The audit came in, the price of the company after the shares increased nearly 3 times

According to the head of the Ministry of Finance, from his experience as the head of the audit industry, Mr. Phuc said that after auditing 45 post-equitization enterprises, the audit determined that the average value of enterprises increased by 2.8 times compared to the previous year. pre-determining the stock price of the enterprise.

Mr. Phuc said that determining the enterprise’s price before equitization is often inaccurate, has many different views and is often lower than the actual value.

“When redefining the enterprise value to be higher, this is considered as causing loss and waste, many cases are criminally handled,” said Minister Ho Duc Phuc.

“We have not yet determined the exact value of the land use rights, there are many views. If the land rent is one year, the enterprise value is calculated, but for many years it is not determined into the enterprise value, so it causes difficulties. for price determination before equitization”, the Minister of Finance stated.

“The determination of the value of land use rights of joint-stock enterprises, in Decree 44/2014, provides 5 methods of determining land price, all 5 of these methods give 5 different results”, the Minister Ho Duc Phuc stated.

Because of the difficulty in valuing enterprises and determining land prices, the Minister of Finance affirmed that the revenue from equitization and divestment in 2021 is very low, accounting for only 7.8% of the plan.

“The plan to collect from shares and divestment of State enterprises in 2021 is more than VND 40,000 billion by the National Assembly, but by the end of 2021, it will only reach VND 3,000 billion,” the Finance Minister informed.

The head of the Ministry of Finance mentioned that the current state of equitization and divestment is currently blocked due to a number of major difficulties from determining enterprise value, the role of the head and especially the issue of valuation. value of land use rights attached to enterprise assets before equitization.

Minister Phuc said that there are currently many problems posed in equitization, such as whether State-owned enterprises, which are making profits, should continue to ask questions of restructuring and equitization? Even when equitizing the State, should we keep the state capital below 55% or do we sell it all?

“The problem here is that if we keep 55% of the state capital in the enterprise after equitization, we can’t sell it later or if we can sell it at a cheap price,” Phuc said.

The third issue is whether the value of land use rights should be included in the enterprise value before equitization or divestment? or perform annual land lease and keep the right land use purpose approved by the provinces before equitization.

The Minister of Finance said that there is currently a viewpoint that proposes to quit determining land prices to promote the process of equitization and divestment to go faster and more substantively.

Determining the value of land use rights, Mr. Phuc said: “Even in Decree 44/2014 on land prices, we offer 5 methods of determining land prices, all of which give 5 different results. . Even the method of determining the surplus value of land prices of enterprises gives different values, because the inputs are different even at the same time”.

Mr. Phuc said that in the coming time, the Ministry of Finance will coordinate with the Ministry of Natural Resources and Environment to revise this Decree.