Vietnam, Cuba discuss reform of SOEs

The event aimed to share experience with the Permanent Commission for the Implementation and Development of Cuba in equitisation, legal regulations on corporate development, improved working capacity of SOEs, management of capital allocation for SOEs, and the sale of stakes for workers in the restructuring process. 



Chairman of the State Capital Investment Corporation (SCIC) Nguyen Duc Chi said the event looks to strengthen ties between the SCIC and the commission. 



The SCIC is ready to share its experience in updating socialist-oriented economic models and hoped that the Cuban side could use this information to help successfully reform their SOEs, he said. 



Chi added that the SCIC acquires the rights to representing State ownership in 1,055 firms with a total State capital of over 14.8 trillion VND (643 million USD). 



As a stakeholder, the SCIC actively joined in the restructuring of SOEs, made decisions on business plans, and increased investment in efficient SOEs. As a result, their return on equity averaged 19-20 percent from 2013-2018, while the total dividends surpassed 34 trillion VND.



The SCIC successfully sold capital in 955 SOEs and wholly divested in 892 others, with a total turnover of 47 trillion VND, much higher than the initial capital of over 11 trillion VND, he said.