Proposing separation and auction of “golden land” when equitizing state “big men”

Answering the reasons and solutions for accelerating equitization and divestment of the National Assembly deputies at the questioning session on June 8, Minister of Finance Ho Duc Phuoc emphasized that the arrangement of real estate valuation, real estate and real estate Real estate in enterprise valuation before shares, divestment is the bottleneck for this process. Therefore, the equitization process took place very slowly.

Proposal to separate the “golden land” from determining the enterprise’s price when shares

The commander of the financial sector said that in the process of equitizationwhen submitting the plan to arrange public assets of state-owned enterprises, the People’s Committees of the provinces are assigned the authority to approve the plan, but the approval of the equitization plan is currently very slow.

“In 2021, 18 enterprises will be equitized, 4 enterprises will be divested, and 4,402 billion dong will be collected from the state budget, the problem here is that the law must also be improved,” Phuc stated.

Is it appropriate to attach housing arrangement to equitization? Mr. Phuc cited regulations: According to the Government’s Decree, the annual rental property of a business is not included in the value of the enterprise, but one-time tax payment is included in the value of the enterprise’s assets.

“This is a loophole that needs to be overcome, to ensure that after equitization, land is not lost,” emphasized the Minister of Finance.

According to Mr. Phuc, currently, it is not allowed to change the land use purpose after equitization but must comply with the policy approved before equitization. Mr. Phuc emphasized: Recently, there have been many violations related to land such as Agriculture in Saigon, Tan Thuan … mainly from the land, from the change of land use purpose.

Mr. Phuc mentioned a number of violations such as when the Provincial People’s Committee approved, the land was rented, the enterprise paid the land rent once every 50 years, after converting to equitization, the enterprise asked the province for approval to change the use purpose, When changing the land use purpose, the price is not close to the market, creating losses and state assets.

Transfer of land to state management, auction and transfer money to the state budget

Phuc said: “Many experts have opinions on amending the law, state-owned enterprises as well as shares use land, but land is owned by the whole people, and property of the whole people is managed by the state. Therefore, the land of state-owned enterprises is leased land, for business purposes, when converted into shares, it must also be used for business purposes.

Phuc said: If any state-owned enterprise has no need to use land, when the shares must be returned to the state, the state will auction that land to collect money for the budget, the difference in land rent. will not go into the business pocket but into the state budget.

Phuc affirmed: It will be beneficial to promote the capacity of the economy, equitize enterprises to improve capacity, not to sell machinery and equipment, sell land for the difference, switch to residential land or lay off workers.

“If we can do this, surely the economic capacity will not encourage businesses to look at golden lands as commercial land or organize equitization,” emphasized the Finance Minister.

Regarding the responsibility for the delay in equitization and divestment, Mr. Phuc said that: The direct responsibility is the owner of the enterprise. In the locality, the Provincial People’s Committee is responsible; For enterprises under the Ministry, the Minister is responsible, the Chairman of the Members’ Council, the General Director is responsible for making plans, for enterprises having equitization plans. However, Minister Phuc said: “The current slow equitization shows that there is no determination, no responsibility, the plan is not approved and cannot be listed or sold”.