Vietnam PM asks “super committee” not to be admin burden on enterprises

Home / Economy

Ngoc Thuy 14:44, 2019/07/18

Timing is essential in a market economy, requiring the Committee for State Capital Management (CSCM) to be responsive and quickly address enterprises’ concerns, said Prime Minister Nguyen Xuan Phuc.

Vietnam’s Committee for State Capital Management (CSCM), dubbed as the super committee, must create favorable conditions for enterprises’ further development, instead of being an administrative burden, according to Prime Minister Nguyen Xuan Phuc.

Overview of the meeting. Source: VGP.

Timing is essential in a market economy, requiring the CSCM to be responsive and quickly address enterprises’ concerns, Phuc said in a meeting with the CSCM on July 17.

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

Phuc requested the CMSC to continue cooperating closely with 19 corporations and groups, while focusing on improving capabilities and efficiency in the committee’s operation.

Additionally, Phuc urged the committee to enhance supervision at those under its administration, preventing losses of state capital and assets during their operations, especially in the privatization and divestment process.

Phuc requested government agencies to consider the committee’s proposal in deregulating certain aspects for enterprises, delegating them appropriate responsibilities.

Nguyen Hoang Anh, chairman of the CMSC, said the committee is piloting the communication system connecting with 19 enterprises, which would serve as a basis to set up indicators and software for enterprises supervision.

A report from CMSC said most enterprises under its management have been profitable, with an increase in revenue and pretax profit of 15% and 21%, respectively.

Topping the list of 19 SOEs is state investment arm State Capital Investment Corporation (SCIC).

The remaining 18 SOEs were formerly run by four ministries which are 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 belonging to the MoIT and MoT with six groups and six corporations.

Of the 19 on the list, the state now holds a 100% stake in 14 SOEs. These include Electricity of Vietnam (EVN) and PetroVietnam, the two largest state-owned conglomerates in terms of stockholder equity (VND431 trillion (US$18 billion) and VND205 trillion (US$9 billion), respectively, according to their 2016 audited reports. The two have total assets of VND770 trillion (US$33.8 billion) and VND692 trillion (US$30.3 billion) as of 2016, respectively.

Comments

Other news

21:35, 2024/12/21

Regulatory efforts underway to strengthen e-commerce in Vietnam

By 2025, Vietnam's e-commerce is expected to reach 10% of retail sales and contribute to the digital economy which is estimated to account for 20% of GDP.