HA NOI'S GOVERNMENT PLANS TO COMPLETE EQUITIZATION AND DIVESTMENT IN 25 STATE-OWNED ENTERPRISES UP TO 2025

Recently, on June 6, 2023, the Hanoi People's Committee issued Plan No. 166/KH-UBND on restructuring State-owned enterprises and state-invested enterprises (hereinafter referred to as the "SOEs") under the Hanoi People's Committee for the period of 2022 – 2025, concretizing the implementation of the plan approved by the Prime Minister in Decision No. 1479/QD-TTg dated November 29, 2022.

Accordingly, there will be 52 SOEs under the People's Committee of Hanoi subject to the status quo maintenance or restructuring, specifically:

1. Maintaining 18 single-member limited liability companies with 100% charter capital held by the State (including Hanoitourist Corporation, Hanoi Transport Corporation, and other 16 single-member limited liability companies, in which, various companies operate in the fields of green parks, irrigation, water supply and drainage and urban environment).

2. Equitizing 02 enterprises:

• Reducing the State's ownership rate to 50% or less for Hanoi Investment Export Import And Construction Development One Member Company Limited; and
• Reducing the State's ownership rate from over 50% to under 65% for Hanoi Lighting and Urban Equipment One Member Limited Liability Company.

3. Merging 01 enterprise: Hanoi Movies One Member Company Limited.

4. The entirely divesting state capital in 23 state-invested enterprises (21 joint-stock companies, 1 joint-venture company, and 1 limited company).

5. Keeping the state capital invested in 04 State-invested enterprises:

• Son Tay Water Joint Stock Company (95.6% state-owned);
• Dong Xuan Joint Stock Company (71% state-owned);
• Hanoi Livestock Breeding Joint Stock Company (60.3% state-owned);
• Hanoi Transport Project Joint Stock Company (73.85% state-owned).

6. Reviewing and proposing separate plans for 04 enterprises, including:

• Urban Infrastructure Development Investment Corporation;
• Hanoi Housing Development and Investment Corporation;
• Hanel Joint Stock Company; and
• Thang Long Metal Wares Joint Stock Company.

The roadmap for restructuring the SOEs under Plan 166 for enterprises undergoing equitization and divestment shall be as follows:

1. Focusing on implementing and handling financial and asset limitations in 2023.
2. Completing the equitization in 2024 – 2025 according to the approved schedule.
3. Completing the divestment of 07 enterprises in 2024 and 16 enterprises in 2025.