The recently-established Committee for the Management of State Capital at Enterprises (CMSC) will have a heavy workload to shoulder, needing great efforts exerted to overcome this challenge, according an expert.
A worker mans equipment on an oil rig of the State-owned Vietnam National Oil and Gas Group (Photo: pvn.vn)
Phan Duc Hieu, Deputy Director of the Central Institute for Economic Management (CIEM), made the remark at a forum on State-owned enterprise (SOE) restructuring in Hanoi on November 30.
The CMSC, which made its debut last September, will manage 19 State-owned economic groups and corporations. According to consolidated financial statements on December 31, 2017, the total value of state equity at these 19 firms topped 1 quadrillion VND (43 billion USD) and the total asset value was 2.3 quadrillion VND.
Hieu said the establishment of the CMSC is a move to separate the State’s ownership and management of the SOEs. It is also a step towards setting up a modern and transparent governance framework for the SOEs.
The overlapping performance of the State’s management and ownership of its capital within various businesses has led to the urgent need for reform.
Pointing out two of the major challenges facing the CMSC, Hieu said this committee is a State agency but must work as a professional investor. Meanwhile, with such high requirements, the CMSC will have to devise mechanisms for attracting quality personnel.
Nguyen Van Khach, Vice Chairman of the National Financial Supervisory Commission, said the “super committee” needs to publicise its functions and tasks in managing and monitoring the State capital left at equitised enterprises. It is also responsible for accelerating and promoting the effectiveness of the divestment of State capital from the equitised firms.
Last year, Prime Minister Nguyen Xuan Phuc approved a plan for restructuring the SOEs, with a focus on State-owned groups and corporations, between 2016 and 2020. The Party Central Committee also issued a resolution emphasising that enhancing the restructuring and re-organisation of SOEs is a task of utmost importance.
In the first half of 2018, more than 28.05 trillion VND was collected from the work, including nearly 22.46 trillion VND from equitisation and 5.6 trillion VND from State capital divestment.
The total revenue from equitisation and divestment has reached approximately 198 trillion VND since 2016, according to the Steering Committee for Enterprise Reform and Development.
At the forum, policymakers, experts and representatives of SOEs discussed mechanisms, policies, and the current situation of SOE restructuring. They also looked into some obstacles facing equitisation and the impact of Industry 4.0 on this process.VNA