Vietnam’s super committee set to be operational in September

13-Sep-2018 Intellasia | Hanoitimes | 6:00 AM Print This Post

The combined state capital of 19 state-owned enterprises (SOEs) to be put under the committee`s management reached VND991 trillion (US$42.47 billion) and state assets worth VND2,300 trillion (US$98.57 billion) as of December 31, 2017.

After months of preparation, Vietnam’s Committee for State Capital Management, dubbed as the super committee is scheduled to be operational in September, Nhan Dan newspaper, the mouthpiece of the Communist Party of Vietnam, reported.

On January 15, prime minister Nguyen Xuan Phuc issued Decision No.66 setting up the working group tasked with establishing the State Capital Management Committee. deputy prime minister Vuong Dinh Hue was appointed as head of the working group and Nguyen Hoang Anh, the would-be chair of the committee, as standing deputy head.

Other deputy heads include minister Mai Tien Dung, head of the government Office; Nguyen Chi Dung, minister of Planning and Investment; and Dinh Tien Dung, minister of Finance.

On February 3, the government issued Decree No.09 to establish the Committee, while the working group is expected to finalise legal documents regarding the Committee and submit to the government for approval in September.

In the latest draft on its operation, the committee will manage state capital in 19 state-owned economic groups and general corporations instead of 21 initially planned.

Following financial statements of 19 SOEs dated December 31, 2017, the combined state capital under the committee’s management reached VND991 trillion (US$42.47 billion) and state assets worth VND2,300 trillion (US$98.57 billion).

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

According to Nguyen Hoang Anh, chair of the committee, a set of key performance indicators has been completed to monitor SOEs’ operation on a frequent basis.

The PM in February requested the committee to speed up the process of equitisation and divestment at SOEs, at the same time to improve efficiency in operation and capabilities of SOEs in subject.

Topping the list of 19 SOEs is State Capital Investment Corporation (SCIC) under the management of the Ministry of Finance.

The remaining 18 SOEs are being 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, comprising of six groups and six corporations.

Of the 19 on the list, the state now holds a 100 percent 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 had total assets of VND770 trillion (US$33.8 billion) and VND692 trillion (US$30.3 billion) as of 2016, respectively.


Category: Economy, Vietnam

Print This Post

Comments are closed.