Economic Sector

Last updated: Wednesday, May 15, 2019


Six SOEs Handed over to State Capital Management Commission

Posted: Saturday, November 24, 2018

Six enterprises administered by the Ministry of Industry and Trade were handed over to the State Capital Management Commission from November 10.

Carrying out Decree 131/2018/ND-CP of the Government dated September 29, 2018 on functions, tasks, powers and organisational structure of the State Capital Management Commission, the Ministry of Industry and Trade hosted a ceremony to hand over its enterprises to the commission from November 10.

Speaking at the hand-over ceremony, Minister of Industry and Trade Tran Tuan Anh said that his ministry has six enterprises to be transferred to the commission, including Vietnam National Oil and Gas Group (PetroVietnam), Electricity of Vietnam Group (EVN), Vietnam National Coal, Mineral Industries Holding Corporation Limited (Vinacomin), Vietnam Chemical Group (Vinachem), Vietnam National Petroleum Group (Petrolimex) and Vietnam Tobacco Corporation (Vinataba).

“All of these enterprises are big-capitalised. The State currently holds over VND555 trillion (US$24 billion) of capital in these enterprises, equal a half of total State stake in 19 SOEs held by the commission,” he said.

Especially, all six enterprises administered by the Ministry of Industry and Trade are operating in influential sectors of the economy like electricity, coal, oil, gas, petroleum, tobacco, and chemicals.
Minister Anh said, to hand over six enterprises to the commission in time as specified in Clause 1, Article 11, Decree 131/2018/ND-CP of the Government, the Ministry of Industry and Trade issued two official documents, namely 8609/BCT-TC dated October 23, 2018 and 8954/BCT-TC dated November 5, 2018, to urge the handover and coordination in this process. Besides, the ministry and six enterprises actively prepared necessary documents.

He hoped that, with new management and operating mechanism, SOEs will have more conditions and opportunities to develop and meet development requirements in the new context; further play pillar roles and motivations for national economic development in the context of international and regional economic integration.

At the handover ceremony, Minister Anh affirmed that the Ministry of Industry and Trade is committed to supporting operations of these SOEs as well as the State Capital Management Commission to successfully deliver political tasks assigned by the Party and the State.

After the enforcement of Decree 131/2018/ND-CP, the State Capital Management Commission has actively cooperated with other ministries and agencies to transfer SOEs to it
The Commission has actively guided SOEs concerned to prepare handover contents and procedures, strictly adhere to Decree 131/2018/ND-CP and Decision 1515/QD-TTg dated November 9, 2018 of the Prime Minister ratifying regulations and documents on enterprise handover.

Moreover, the Commission initially carried out its assigned tasks as the representative body of State-owned capital at enterprises.

Before the handover, works that concern the ministry and the commission were clearly defined in the spirit of ensuring no interruption of production and business operations and compliance with the law. The two agencies define the coordination mechanism to further direct and manage enterprises to achieve their business tasks in 2018 and reshuffle their operations according to approved plans.

Handing SOEs to the commission is a major change, institutionalising and executing Resolution 12-NQ/TW of the 5th plenum of the 12th Party Committee on establishment of a specialised ownership agency of SOEs and State-owned capital in enterprises. This will address shortcomings of current State capital representation model by establishing a professional, responsible and accountable representative agency.

In addition, it is necessary to separate the function of State capital ownership representation in enterprises from State administrative agencies in order to create equal business environment for all enterprises. On the other hand, it is also important to enable State agencies to focus their capacities on execution of increasingly complicated State management tasks.

The State Capital Management Commission is a governmental agency, representing State ownership in wholly State-owned enterprises, partially State-owned joint stock companies, and two-member or more limited liability companies.
The State Capital Management Commission is allowed to decide on its authorised inaugural capital and adjust the authorised capital in the course of operations (except for enterprises established by the Prime Minister).

Huong Ly

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