Without substantial investment, state-owned corporations may risk losing right on the home ground against other competitors, according to Prime Minister Nguyen Xuan Phuc.

Prime Mnister Nguyen Xuan Phuc at the meeting. Source: VGP.

Investments would lay a strong foundation for further development, Phuc said at a year-end meeting of Vietnam’s Committee for State Capital Management (CSCM), dubbed as the super committee.

While pubic funds disbursement in 2019 did not meet the target, disbursed foreign direct investment (FDI) topped US$20 billion and the country has an addition of 140,000 private establishments with an average registered capital of VND12 billion (US$516,975).

Phuc stressed the importance of the CSCM and major state corporations in managing a labor force, contributing significantly to macro-economic stability and state-budget revenue.

Most corporations under the CSCM are operating in priority fields, including electricity, coal, oil, chemicals, and aviation, among others, which have major impacts on socio-economic development.

However, the PM noted the slow privatization process of a number of state-owned enterprises (SOEs), while the CSCM has not been able to propose changes in the legal framework to prevent overlapping laws and regulations.

Phuc requested the CSCM to continue gearing up the restructuring and renovation of SOEs, including the adoption of corporate governance in compliance with international standards and modern technologies.

According to the PM, SOEs remain a key force in the economy that helps spur economic growth and social justice.

Phuc said, it is, nevertheless, the responsibility of SOEs to be the pioneers in applying technologies and supporting socio-economic sustainable development.

Launched in September 2018, the CSCM is tasked with managing state capital at 19 leading state-run groups and corporations with combined registered capital of VND1,000 trillion (US$43.02 billion) and assets of over VND2,300 trillion (US$98.96 billion).

Key tasks of the CSCM include management of state capital; financial supervision and efficiency evaluation; appraisal of projects and investment activities; risk management and regulating working mechanism for state representatives at SOEs.