On November 29, 2017, in Hanoi, GIZ-WMP Waste and Solid Waste Management Program, DEVIWAS Project, Korean Institute of Environmental Technology and Industry KEITI and Vietnam Water Supply and Sewerage Association workshop on Equitization Situation – Research results and recommendations.
Attending the workshop were nearly 120 delegates who are managers, policymakers, scientists from Government Office, Ministry of Construction, Ministry of Finance, Ministry of Planning and Investment, World Bank, Ministry of Agriculture and Rural Development, leaders of Vietnam Water Supply and Sewerage Association, international cooperation organizations: WHO, Embassy of Finland, JCA, Keiti, Deviwas, GIZ and leaders of water supply and drainage companies nationwide. Participants heard the main report at the seminar on the equitization situation of Vietnam’s water sector, research results and recommendations of the research team led by MSc. Nguyen Tien Thoa – Vice Chairman, General Secretary of Vietnam Valuation Association, former Director of Price Management Department, Ministry of Finance as the research leader; presentations of Binh Duong Water Supply and Environment Company, Thai Binh Water Supply, Bac Ninh Drainage, and Wastewater Treatment.
As of September 2017, the whole country had 111 urban water supply enterprises that have been equitized since 2005, so far only 10 companies have not conducted equitization (accounting for 9%), including 2 large water supply companies. of Hanoi and Tp. Ho Chi Minh. Enterprises in the field of drainage and wastewater treatment have been equitized late and have more difficulties due to less attractive to investors. However, up to now, in 71 drainage enterprises, 39 enterprises have been equitized and the State holds 50% of the shares, 29 enterprises operate in the form of one-member limited liability company with 100% state-owned capital; 3 businesses are invested in the form of BOT and BOO.
From reports and presentations, it can be seen: The equitization of water enterprises is a proper policy, consistent with the objective requirements of the economy operating under the market mechanism regulated by the State. Equitization has created a driving force for production and business, renovated business management mechanisms, enhanced governance in a modern way, the created initiative in business activities, and brought about economic efficiency. authentic for economic entities involved in water supply and drainage.
The situation of sale of shares of basic enterprises took place smoothly, production and business activities after equitization had positive changes: the average output of commercial water, the number of connections, coverage increased compared to before. , the rate of water loss decreased, the number of water supply hours per day was always 23.6 / 24 hours, the number of employees per 1,000 connections decreased sharply. For drainage enterprises, thanks to renovation investment, many targets have increased sharply. In addition to the successes and advantages, the equitization of the water industry also faces difficulties and shortcomings in the implementation process. It is about the regulations on the selection of strategic contractors, the determination of the selling price of shares to strategic investors, the method of selling shares for the first time, the percentage of shares held by the state, the revaluation of prices. the value of existing assets, the cost of equitization, the valuation of enterprises is still inadequate, the price of clean water services, the price of drainage services in many enterprises has not been approved by the competent authorities on the principle of correctness, completeness, …
Attendees of the seminar provided many ideas and recommendations to find ways to overcome these shortcomings by completing legal documents, implementation guidelines, and specific identification methods. create the most favorable conditions for the field of water supply and drainage to develop, and at the same time ensure the rights and obligations of laborers, especially raising the quality of products and services, ensuring social security, improve the quality of life of people.
Although the roadmap of State divestment for water supply and drainage enterprises from now to 2020 has been stipulated by the Prime Minister, the conditions of sanctions on production, supply and consumption of clean water are not adequate. Enough, it is necessary to refer to the experience of other countries to consider more appropriate roadmap, avoiding the state that the State has divested 100%, but about 5-10 years later, it must conduct “buy back” for Water supply safety as has taken place in several countries around the world.