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Official Gazette

Sunday, June 11, 2023

SOE management committee proposed

Updated: 08:13’ - 22/07/2016
The Ministry of Planning and Investment recently unveiled a draft decree on formation of a special committee to manage state assets and capital in all state-owned enterprises (SOEs).
30 big state enterprises, including nine economic groups and 21 state corporations, would be transferred to the committee for management__Photo: Internet

According to the draft, scheduled to be submitted to the Government for approval in the third quarter of this year, the new committee would help the Government manage and oversee state holdings in enterprises, and implement plans on restructuring, reorganization and improvement of operation efficiency of SOEs.

It would conduct investment activities and manage all assets and capital in SOEs on the principle of minimizing losses and maximizing the state asset value.

This new committee would be answerable to the Government and Prime Minister for the efficiency of investment and use of state assets and capital in enterprises.

Upon detecting potential risks at SOEs, the committee would issue warnings and direct them to find solutions, and report all detected cases to the Prime Minister.

According to the drafter’s report, 30 big state enterprises, including nine economic groups and 21 state corporations under the management of seven ministries, with a total capital of VND 4,300 trillion, would be transferred to the committee for management.

However, the draft has met with skepticism from experts about the committee’s capacity to manage such a huge amount of state holdings in enterprises of various sectors.

In response to that, Pham Duc Trung, director of the Enterprise Reform and Development Department, the Central Institute for Economic Management, which is assigned to prepare the draft decree, said that there would be mechanisms to attract talents in the field of enterprise governance. Cadres who are in charge of enterprise governance in ministries would also be considered for recruitment, he added.

Economic expert Pham Chi Lan in an interview with local media agreed with the establishment of a special committee for management of state capital in SOEs. However, there would be both advantages and risks. The formation of the committee would not be as difficult as how to make it work. There must be a very transparent mechanism so that the public would be able to supervise it, she said.- (VLLF)

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