Deputy PM: Reviewing SOE laws
A wide range of laws and regulations governing State-owned enterprises (SOEs) would be reviewed for possible adjustments and changes, per request of the government.
As such, relevant ministries and State agencies are tasked with reviewing the current laws and regulations on SOE restructuring and development in the new context, according to the conclusions of Deputy Prime Minister Vuong Dinh Hue at a meeting with the National Steering Committee for Enterprise Reform and Development, reviewing its performance in 2017 and plans for 2018.
Deputy Prime Minister Vuong Dinh Hue.
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With this being said, in order to fulfil and exceed the plan for 2018, the Deputy Prime Minister requested related ministries, provinces, and cities, as well as corporations to continue improving the implementation of the government's decrees and tasks assigned by Prime Minister Nguyen Xuan Phuc.
Specifically, it is important to finalize regulations and the legal framework with regards to administering and operating SOEs, with a view to reform and improve their efficiency.
On the other hand, relevant parties must complete the equitization and divestment objectives according to the plan approved by the Prime Minister, ensure the national budgetary revenue targets set by the National Assembly, and remove difficulties occurring during the implementation process in a timely manner.
Moreover, the government is expected to approve the equitization plan of SOEs on the basis of the Decision No.707 approved by the Prime Minister.
At the same time, SOEs should step up efforts in improving their organization, personnel, strategies, administration, and financial capabilities for a healthy development.
The government will also try to review and deal with the remaining shortcomings and weaknesses of SOEs, while putting an end to loss-incurring companies and projects based on market mechanisms and by clearly identifying the responsibilities of related groups and individuals.
It is important for related ministries, provinces and corporations to continue with the administrative reform, improving business conditions and the legal environment, as well as creating favorable conditions for the rapid increase in the number of newly-established enterprises and startups, with a view to have 1 million operating enterprises by 2020.
The Deputy Prime Minister requested SOEs to be administered based on international practices of corporate governance. He also requested SOEs to finalize supervising and internal audit mechanisms and strictly comply with their financial management and information disclosure obligations.
Ministers and Chairmen at provinces and cities will be directly responsible for not meeting the planned objectives and results.
Total revenue from the equitization process and divestment in 2017 is estimated at VND144.6 trillion (US$6.3 billion), 2.4 times higher than the original target of VND60 trillion (US$2.6 billion) set by the National Assembly, according to the Ministry of Industry & Trade. Specifically, revenue from equitization process and divestment reached VND5.2 trillion (US$229 million) and VND139.4 trillion (US$6.1 billion), respectively.
The number of SOEs has been reduced 24 times compared to 20 years ago, from 12,000 enterprises in 1986 to 500 in 2017, holding 11 key sectors and providing essential public services and social and security needs, said the Deputy Prime Minister Vuong Dinh Hue in a government’s press briefing on January.
The number is expected to decrease to 150 in 2018, mainly lottery companies, public services, and 3 leading SOEs: Electricity Vietnam (EVN), PetroVietnam (PVN) and Viettel.
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Vietnam news in brief - August 24
Read The Hanoi Times to stay up to date on developments in Vietnam.
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