Gov’t moves closer to SOE capital committee

Wednesday, Jan 17, 2018 09:57

An airplane of Vietnam Airlines parks at Da Nang International Airport, a member of the Airports Corporation of Vietnam (ACV). ACV is one of the State-owned enterprises planned to be put under the management of the special committee for managing State capital in enterprises. — VNA/VNS Photo Huy Hung

Prime Minister Nguyen Xuan Phuc signed a decision to form a working group to boost the formation of a special committee responsible for managing State capital at enterprises.

Deputy Prime Minister Vuong Dinh Hue is the head of the working group.

The group will comprise four deputy heads - Nguyen Hoang Anh, former Secretary of Cao Bang Province Party Committee; Minister-Chairman of Government Office Mai Tien Dung, Minister of Planning and Investment Nguyen Chi Dung and Minister of Finance Dinh Tien Dung.

The working group will act as a consultant to the Prime Minister in setting up the special committee.

According to a project being developed by the Ministry of Planning and Investment, the committee will help the Government to efficiently manage and supervise State capital and assets at enterprises as well as implement restructuring and State capital divestments and boost the efficiency of State-owned enterprises (SOEs).

SOEs in the country have capital and assets worth an estimated VND5.4 quadrillion (US$236.9 billion) in total.

As planned, 30 SOEs will be put under the management of the special committee, including nine economic groups and 21 corporations that are currently under the management of seven ministries.

One such noteworthy corporation in the list is the State Capital Investment Corporation, which was founded with functions similar to that of the special committee. The other SOEs include Viet Nam National Textile and Garment Group, National Oil and Gas Group, Electricity of Viet Nam, Viet Nam Posts and Telecommunications Group, Viet Nam National Coal and Mineral Industries Corporation, Bao Viet Group and Viet Nam Aviation Corporation.

At a meeting towards the end of 2017, the Prime Minister said the Government would announce the formation of the special committee in the first quarter of this year.

The committee will follow a management model that separates ownership from management of State capital. This is expected to boost efficiency.

On Tuesday, Deputy Prime Minister Vương Đình Huệ said the special committee would be set up within the first quarter of this year.

“In the first quarter, the committee must be founded to affirm its legal status,” he said.

Huệ, who is the also the head of the working group, asked relevant ministries to hasten the equitisation process and State capital divestments as planned for this year.

The transfer of the management of State capital at enterprises from ministries to the Special Committee must not cause delays in equitisation and capital divestments, Huệ said, adding the ministries must still be held accountable for inefficient projects.

Huệ said the working group would act as a “launch pad” for the committee to ensure the foundation progress and quality of legal framework for the operations of the committee.

Huệ asked the Ministry of Home Affairs to coordinate with relevant ministries and submit the draft resolution on the foundation of the committee to the government for discussion at a meeting to be held in February. The Ministry of Planning and Investment was urged to hasten the compilation of a decree about the organisation and responsibilities of the committee.

At Tuesday’s meeting, standing deputy head of the working group cum head of the committee Nguyễn Hoàng Anh said the working group would be dissolved after the committee received the management of State capital from ministries.

Nguyễn Đức Chi, chairman of the State Capital Investment Corporation (SCIC), said SCIC could be one of the State-owned enterprises to be put under the management of the committee when it became operational.

Despite their similar roles in managing State capital, Chi said there would be no overlap in functions between the two organisations. — VNS

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