New agency to monitor capital of state-owned firms

15:38 | 27/10/2018 Economy- Society

(VEN) - Prime Minister Nguyen Xuan Phuc expressed his hope that the newly launched State Capital Management Committee (SCMC), assigned to manage capital at 19 groups and corporations, would create positive changes in state-owned enterprises (SOEs). He spoke at the committee’s inauguration ceremony recently in Hanoi.

new agency to monitor capital of state owned firms

The role of state capital

The SCMC was established pursuant to Government Decree 131/2018/ND-CP dated September 29, 2018 to manage the capital and assets of Vietnam’s leading state-owned firms, joint stock and limited companies. The establishment of the SCMC helps differentiate state management from capital management at SOEs.

Addressing guests at the ceremony, PM Phuc emphasized that improving the efficiency of SOEs to enhance the economy’s competitiveness is a major requirement of the party and the state. The committee is assigned to manage nearly VND1,000 trillion of capital and VND2,300 trillion worth of assets, accounting for two thirds of total SOE assets. It is also responsible for submitting to the government a general strategy to develop SOEs operating under its management.

The committee will act as state owner representative at the following enterprises: 1) State Capital Investment Corporation (SCIC); 2) Vietnam Oil and Gas Group (PVN); 3) Electricity of Vietnam (EVN); 4) Vietnam National Petroleum Group (Petrolimex); 5) Vietnam National Chemical Group (VINACHEM); 6) Vietnam Rubber Group (VRG); 7) Vietnam National Coal-Mineral Industries Holding Corporation Limited (VINACOMIN); 8) Vietnam Posts and Telecommunications Group (VNPT); 9) Vietnam Mobile Telecom Services One Member Limited Liability (MobiFone); 10) Vietnam National Tobacco Corporation (VINATABA); 11) Vietnam Airlines; 12) Vietnam National Shipping Lines (VINALINES); 13) Vietnam Railways (VNR); 14) Vietnam Expressway Corporation (VEC); 15) Airports Corporation of Vietnam (ACV); 16) Vietnam National Coffee Corporation (VINACAFE); 17) Vietnam Southern Food Corporation (VINAFOOD 2); 18) Vietnam Northern Food Corporation (VINAFOOD 1); 19) Vietnam Forest Corporation (VINAFOR); 20) Other enterprises decided by the prime minister.

Major tasks

To ensure effective operations of the SCMC, PM Phuc asked the committee to concentrate on the following major tasks: - Streamlining the organizational apparatus of SOEs to enhance their efficiency; - Recruiting qualified officials for management positions; - Setting objectives and criteria to assess the efficiency of each division and each official, as well as the effects of each regulation, in order to prevent corruption and fraud.

SCMC Chairman Nguyen Hoang Anh said the committee is accelerating the reorganization and equitization of SOEs, as well as state capital withdrawals from these businesses, in accordance with decisions made by the government and the PM. A software program has been created to supervise SOE operations and assess their efficiency, as well as to give warnings of financial and management risks. The program introduces indicators pertaining to the financial situation, business and investment results, human resources, salary, and management based on the guidelines of the Organization for Economic Cooperation and Development (OECD). The program will provide automatic warnings when an indicator exceeds its safety limit, enabling the SCMC to report on a timely basis to the government and the PM.

The State Capital Management Committee has signed memorandums of understanding with five ministries on plans

to oversee 19 groups and corporations.

Lan Anh & Hoang Duan