15:22 | 13/03/2018 Companies
The ownership of 21 large State-owned groups and corporations is likely to be transferred from ministries and sectors to the Committee on State capital management at enterprises.
|Customers at Vietnam Posts and Telecommunications Group (VNPT) - Photo VNA|
This is part of a draft decree on the functions, tasks and organization of the committee, which is collecting comments.
According to the document, the State Capital Investment Corporation (SCIC) will no longer be managed by the Ministry of Finance, but the Committee on State capital management at enterprises. It will, however, continue to be the owner representative of State capital at enterprises set to be transferred from ministries and provincial People’s Committees.
The rest of 20 companies are parent companies of groups and corporations whose charter capital is wholly owned by the State and run by the Ministries of Industry and Trade, Agriculture and Rural Development, Information and Telecommunications, and Transport.
They include seven groups – PetroVietnam Oil Corporation (PV Oil), Vietnam Chemicals Group, Vietnam Electricity, Vietnam National Oil and Gas Group (PetroVietnam), Vietnam Rubber Group, Vietnam Coal-Mining Group, and the Vietnam Posts and Telecommunications Group (VNPT), along with 13 corporations, including Vietnam Multimedia Corporation (VTC), MobiFone, Vietnam Cigarette Corporation, Vietnam Aviation Corporation, and Vietnam Forestry Corporation.
Combined State capital at the 21 firms is equivalent to 50 percent of total capital owned by the State at State-owned enterprises. The committee will manage an estimated sum of 5 quadrillion VND.
The establishment of the “super committee” is expected to deal with shortcomings of the current owner representative model. It is hoped to create more favorable conditions for ministries and the People’s Committees to show better performance in State administrative management, thus contributing to improving the business environment and completing the market economy mechanism.