Committee for Management of State Capital debuts

10:15 | 02/10/2018 Economy

The Committee for Management of State Capital (CMSC), known as the “super committee”, made its debut in Hanoi on September 30 in the witness of Prime Minister Nguyen Xuan Phuc.

PM Nguyen Xuan Phuc speaks at the debut of the Committee for Management of State Capital in Hanoi on September 30 - Photo: NDO

The CMSC will manage 19 State-owned economic groups and corporations. According to consolidated financial statements by December 31, 2017, the total value of State equity at these 19 groups and corporations reached more than VND1 quadrillion (US$43 billion) and the total value of assets was VND2.3 quadrillion (US$99 billion).

According to the 2018 decree guiding its establishment, the committee is responsible for managing State capital at the enterprises where the State holds a 100 pct stake and at joint stock companies and limited liability companies with multiple members where the State have invested its capital.

The committee, established by the Government, has one chairperson and at most four vice chairpersons appointed or dismissed by the Prime Minister.

The aforementioned 19 enterprises are run by five ministries. Topping the list is the State Capital Investment Corporation (SCIC) under the management of the Ministry of Finance. The remaining 18 SOEs are managed by four ministries, including the Ministries of Industry and Trade (MoIT), Transport (MoT), Agriculture and Rural Development (MARD), and Information and Communications (MIC).

Most of the names on the list are enterprises under the management of MoIT and MoT, comprising of six groups and six corporations.

At the launching ceremony, the committee and these five ministries signed memoranda of understanding (MOU) on the transfer of rights of State representatives at aforementioned enterprises to the committee.

At the MOU signing ceremony - Photo: thoibaotaichinhvietnam

Addressing the ceremony, PM Nguyen Xuan Phuc said improving the efficiency of the use of the State capital, thus enhancing the competitiveness of the whole economy, was a basic requirement to boost the role of the State sector.

The PM said these enterprises are at the core of the national economy. The committee must work to overcome the weakness and create a big difference to the State sector and each enterprise to increase its efficiency. He requested the committee to quickly strengthen and streamline its operations. It needs to set objectives and indicators to evaluate the effectiveness of each department and staff.

The government leader also asked relevant ministries and these State enterprises to coordinate with the committee to carry out the transfer immediately, without affecting the management of State capital and equitisation process of State-owned enterprises.

Also at the ceremony, the CMSC signed an MOU with Singapore’s Temasek Holdings to exchange business information and share experiences in modern capital management in accordance with the market mechanism.