PM urges better coordination in managing State capital

Friday, Jan 17, 2020 08:50

Oil rigs of Vietsovpetro, a joint venture between PetroVietnam (PVN) and a Russian group, at Bach Ho oil field in the southern province of Ba Ria – Vung Tau. PVN is among 19 State-owned groups and corporations supervised and managed by the Committee for Management of State Capital at Enterprises (CMSC). — VNA/VNS Photo Huy Hung

Prime Minister Nguyen Xuan Phuc urged better coordination between the Commission for the Management of State Capital at Enterprises (CMSC) and ministries, sectors and corporations to avoid delays in key tasks.

Speaking at a review conference of CMSC on Thursday, the PM said weak coordination is a reason for the delay in performing a number of important issues like equitisation and managerial appointments.

He noted that a year after it was launched, the commission has focused on instructing State-own groups and corporations to perform production and business tasks in 2019, resulting in higher revenues and profits, while State capital has not only remained intact but also expanded.

The CMSC also received 12 loss-making projects from the Ministry of Industry and Trade and proposed solutions to increase revenue.

Regarding problems facing the commission, PM Phuc pointed to the delay in some important tasks, such as the approval of managerial positions in some groups and corporation, equitisation and capital divestment, and approval of financial assessment reports. Some groups and corporations failed to fulfill their assigned targets in profit, revenue and contribution to the State budget.

In particular, the PM noted that all groups and corporations have not fulfilled the plans on development investment.

It is the responsibility of ministries, sectors and localities to cooperate with the CMSC, he said, urging the commission to report to him those which are not cooperative.

The PM again stressed the importance of State-owned enterprises to national development, and the need to continue restructuring and reforming SOEs in order to keep their key role in the economy.

The commission reported that the 19 groups and corporations in which it holds the State capital generated combined revenues of nearly VND1.5 quadrillion (US$64.7 billion) in 2019, up nearly 6.4 per cent from 2018. Their combined pre-tax profit came to nearly VND100 trillion, up 28 per cent from the yearly plan. The groups and corporations contributed a total VND221 trillion to the State budget.

CMSC Chairman Nguyen Hoang Anh said the committee would continue suggesting amendments and supplements to laws to facilitate restructuring, equitisation and divestment, strengthen managerial staff and representatives of State capital at SOEs, as well as rotate and deploy qualified personnel between the CMSC and SOEs. — VNS

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