Last updated: Thursday, March 23, 2017
Delays in Transfer of State Capital Ownership to SCICPosted: Tuesday, March 07, 2017
Ministries and localities are reluctant to transfer the ownership of the state capital to the SCIC. In this regard, the Central Institute for Economic Management (CIEM) held a seminar on transferring the right to represent the ownership of State capital to the State Capital Investment Corporation (SCIC) on February 21.
74 per cent of companies fail to reach capital transfer agreement
Of the 32 companies under the ministries, there are 8 companies managed by the Ministry of Industry and Trade, 5 by the Ministry of Transport, 5 by the Ministry of Agriculture and Rural Development, 10 by the Ministry of Culture, Sports and Tourism and 4 by the Health Ministry. Of 141 enterprises managed by localities, there are 50 enterprises managed by Ho Chi Minh City, 15 by Gia Lai province, 13 by Thua Thien Hue province, 11 by Binh Dinh province and 7 by Dien Bien province.
According to the CIEM, to transfer the right to represent the ownership of the State capital, the SCIC is an important solution in the process of restructuring the State-owned enterprises to enhance effectiveness of managing asset and improving the business environment towards the equality and fairness among different types of businesses.
Mr Nguyen Hong Hien, Deputy General Director of SCIC, said that the Prime Minister and the Ministry of Finance has released many documents but the transfer process is still too slow. Although the Prime Minister issued Decree 10382/VPCP- DMDN on December 11, 2015, stating that groups and corporations are not allowed to sell out the capital before they are transferred to the SCIC, some corporations have still ignored that.
To handle the deadlock, Nguyen Dinh Cung, Director of CIEM, suggested that the authorities should be persistent with the progress of the transfer, including liability associated with in-charge individuals. The authorities should also learn about what types of functions the SCIC will adopt after the transfer process and how the State capital will be invested to achieve good outcome. He also said that the transfer process exposes the slow reforms. "The stories are not about the transfer progress but also the conflicts of the interests. These are things that need to be solved," said Mr Cung.