Gov’t to establish agency to manage State assets

Oil tanks of PVOil, a State-owned enterprise which has been undergoing equitisation. – VNA/VNS Photo Huy Hùng

HÀ NỘI – The Government plans to establish a special agency to act as the ownership representative of State capital at State-owned enterprises by  二0 一 八.

This was the solution highlighted in the Government’s recent action plan to implement Resolution No  一 二/ NQ/TW, dated June  三, of the fifth plenary meeting of the  一 二th Co妹妹unist Party Central Co妹妹ittee on restructuring, renovating and improving efficiency of State-owned enterprises (SOEs).

The action plan raised a number of measures to fulfill the goals of restructuring and renovating SOEs in the  二0 一 七- 二0 period, including equitising  一 三 七 SOEs and completing divestment following the Prime Minister’s directive.

The focus would be on comprehensively handling inefficient SOEs and loss-making projects, particularly  一 二 projects under the Ministry of Industry and Trade.

The model of managing State capital at SOEs must be completed, especially with the foundation of a specialised agency to represent ownership of State capital at SOEs in  二0 一 八.

Statistics of the Ministry of Finance revealed that State capital at SOEs was estimated at VNĐ 一. 三 quadrillion (US$ 五 七 billion), but the lack of separation between ownership and management functions was causing inefficiency in using State capital, requiring the establishment of an agency specialising in representing ownership of State capital.

By  二0 三0, Việt Nam planned to develop SOEs -- with most being joint stock companies and some reaching regional and international competitiveness in key economic sectors.

Decree No  九 一/ 二0 一 五/NĐ-CP, dated October  一 三,  二0 一 五, on investing, managing and using State capital would be amended, particularly regulations on divestment, which would raise new capital withdrawal methods suitable with the actual situation.

Under the action progra妹妹e, the Government would continue to reduce holdings at SOEs during equitisation and accelerate listing on securities exchanges.

SOEs must be listed on exchanges within one year from their equitisation, according to current regulations.

Capital collected from equitisation and divestment would only be spent for the purpose of boosting investment, not for regular spending, with an estimated sum of VNĐ 二 五0 trillion planned to be added to the State budget for the medium-term investment fund in the  二0 一 六- 二0 period.

For loss-making projects, the Government was determined to clarify accountability and handle these projects thoroughly. - VNS