Prime Minister asks for faster reorganization of SOEs

The Prime Minister has recently issued a directive to urge the reorganization and renewal of state-owned enterprises (SOEs) in the 2016-20 period.

Under Directive No. 04/CT-TTg, the Prime Minister judges that despite remarkable achievements during 2011-15, the current progress of reorganization and renewal of SOEs has fallen behind schedule. Many SOEs are operating inefficiently, while the promulgation of mechanisms and policies on re-organization and equitization of SOEs are delayed.

PM directs the MOF to study other withdrawal methods of state capital at SOEs__Photo: Internet

To address these problems, the Prime Minister requests the Ministry of Finance to soon promulgate decrees on investment, management and use of the state capital and assets at SOEs in conformity with relevant laws. The ministry is also tasked to study other capital withdrawal methods such as ordinary auctioning or in-lot sale of the whole state capital in public companies listed on the stock exchanges.

Right in this month, the Ministry of Planning and Investment will prepare and submit to the Government the Scheme on establishment of the specialized body representing the state ownership at SOEs, and the state capital at joint-stock companies, and within the first quarter, submit to competent authorities criteria on classification of public non-business units, and the list of public non-business units in ministries, sectors, localities, economic groups and state corporation to be equitized into joint-stock companies.

In the second quarter, ministries and sectors will submit to the Government their amendments and supplements to regulations on the reorganization and operation of SOEs in conformity with newly issued laws such as the Law on Enterprises, the Law on Investment, and the Law Management and Use of State Capital Invested in Production and Business at Enterprises.

Meanwhile, ministries, sectors, localities, economic groups and state corporations will have to improve their management apparatuses; further consolidate management staff; and enhance the capacity, powers and responsibilities of internal supervisors and auditors.

Source: Vietnam Law & Legal Forum (http://vietnamlawmagazine.vn/prime-minister-asks-for-faster-reorganization-of-soes-5734.html)