Paving new path for state-owned enterprises' growth

Tuesday, Aug 20, 2024 07:49

Finance Minister Hồ Đức Phớc spoke at a recent workshop in Hà Nội to gather opinions on the draft Law on State Capital Management and Investment in Enterprises. — Photo baochinhphu.vn

Proposed changes to the draft Law on State Capital Management and Investment in Enterprises emphasise the need to separate capital ownership representation from management functions and to consolidate state capital ownership in businesses.

The Ministry of Finance (MoF) is gathering feedback on the draft Law on State Capital Management and Investment in Enterprises through recent workshops and discussions.

Finance Minister Hồ Đức Phớc said that the law holds significant importance as it affects various enterprises, including those affiliated with the military.

Currently, the challenge of technological innovation at state-owned enterprises (SOEs) surpasses that of private firms, hindering significant progress despite operational enhancements.

Issues primarily stem from difficult investment processes and complex management structures within many SOEs.

Phớc highlighted Singapore's successful SOEs, emphasising efficient budget utilisation, effective risk management and a balanced project portfolio. Seeking feedback from practical industry leaders, the draft committee aims to enhance proactiveness and effectiveness in capital management in a dynamic enterprise landscape.

Lê Quang Mạnh, Chairman of the National Assembly's Finance and State Budget Committee, emphasised the crucial need for enterprise opinions across six key policy areas: state capital management, state capital investment, enterprise investment activities, state capital restructuring, representation of state capital owners and enterprise management.

He stressed the necessity of distinctly separating and defining the roles of asset ownership and state capital in the management of enterprises, as well as the state's oversight of these businesses.

At a conference held on August 16 in Đà Nẵng City, Deputy Chairman of the Commission for the Management of State Capital at Enterprises (CMSC), Nguyễn Cảnh Toàn, advocated for a clear definition of the committee's role as the specialised body representing capital owners in businesses.

Key points to address include defining authorities and responsibilities and coordination with relevant entities such as ministries, enterprises and capital representatives, specifying the management of capital and assets within enterprises and outlining financial mechanisms for committee activities.

Meanwhile, Phạm Thị Thanh Hoà from the Academy of Finance suggested consolidating state capital ownership under one entity for better business operation management.

This centralised approach aims to streamline decision-making and enhance accountability, addressing enterprise needs more efficiently.

Advocating for a clear separation between the roles of capital ownership and state management within enterprises, Nguyễn Chí Thành, Chairman of the Board of Directors at the State Capital Investment Corporation (SCIC), highlighted this crucial point during discussions on the draft law on August 15.

Thành urged the draft committee to emphasise a more distinct division between capital ownership and state management functions within businesses, ensuring a comprehensive and meticulous approach.

He also stressed the importance of clearly delineating between enterprises with full state capital and those with capital from state-owned entities.

In terms of managing first-tier and second-tier enterprises, he recommended providing precise guidance and delegating responsibilities.

The representative of SCIC also recommended studying models from the ASEAN region and China that effectively manage state capital investments in enterprises.

He proposed that the draft committee convene sessions to gather insights from experts and policymakers across nations to leverage their experiences.

Additionally, Thành suggested crafting specific policies tailored to the SCIC, particularly concerning financial matters, operational mechanisms, and personnel.

He emphasised that if SCIC possesses resources, it should possess the autonomy to invest, acquire additional capital in other enterprises, including banks such as BIDV and Vietcombank. Alternatively, considering a dedicated chapter within the law outlining SCIC's role as an investor could be beneficial.

On the other hand, many businesses believe that the law should reconsider and review the scope of regulation.

The draft law outlines that the regulated entities are state-invested enterprises, including those with direct state capital investments and others with investments from these entities. — VNS

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