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Official Gazette

Tuesday, July 25, 2017

Two models of agency managing SOE capital proposed

Updated: 09:12’ - 24/04/2017
As revealed by the Government Office in its recent announcement of Deputy Prime Minister Vuong Dinh Hue’s conclusion about the draft scheme to establish an agency representing the state ownership or managing state capital in state-owned enterprises (SOEs) prepared by the Ministry of Planning and Investment, two establishment models of the agency were proposed.

The Ministry of Planning and Investment proposed two models of an agency managing state capital in state-owned enterprises__Photo: Internet

As in the first model, the agency would act as a government-run committee. There are two plans for establishment of the committee.

First, the committee would be established with members from relevant ministries and sectors and some from the State Capital Investment Corporation (SCIC).

It would take charge of managing 30 large-scale economic groups and state corporations, with the SCIC acting as an independent focal point for management of, and divesting capital from, enterprises of which shares no longer need to be held by the State.

Or else, SCIC would be transformed into a committee to manage both wholly and partially stated-owned enterprises.

As in the second model, SCIC would be strengthened to become a government-run enterprise with higher legal status and better-quality human resources to act as a state owner representative in SOEs. It would manage joint-stock companies that are currently under the management of SCIC and enterprises to be transferred by ministries, sectors and localities in the time to come.

The announcement said that all ministries agreed on the establishment of a specialized committee or an enterprise representing the state ownership and capital in enterprises, noting that the removal of the function of ministries and ministerial-level agencies to represent the state ownership in enterprises would not lower their role but is expected to help them improve the effectiveness of their function of state management of SOEs.

Hue assigned the Ministry of Planning and Investment to coordinate with related ministries in studying the advantages and disadvantages of each model to finalize the scheme on transfer of state ownership from ministries and local administrations to the future specialized committee or enterprise.  

Once this scheme is finalized, the new committee or enterprise would manage and supervise 30 economic groups and state corporations with the total asset worth around VND 5,400 trillion.- (VLLF)
 

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