Since its establishment in August 2006, SCIC has successfully managed State capital at State-owned limited liabilities and joint stock companies. So far SCIC supervises State capital in 876 enterprises valued at VND7,696 billion. SCIC staff has been upgraded. Of 1,000 representatives (30 percent less than the time of establishment) are in management bodies of 80 percent of the enterprises.
Important role of the representative
Due to close cooperation between SCIC and network of representatives, the management of State capital at enterprises has been improved. SCIC can help enterprises settle quickly problems and develop business strategies to increase efficiency of both enterprises and State capital.
In 2007, the representatives have helped SCIC ensure rights and obligations of the State shareholders at the enterprises, increasing capital in 47 enterprises worth over VND1,100 billion and withdrawing capital from 36 enterprises that require no longer State management.
According to Mr Hoang Nguyen Hoc, SCIC Deputy Director General, in 2007, with assistance of the representatives, SCIC could recovered over VND2,300 billion of debts in State shares and dividends.
Mr Trinh Quang Tuyen, Chairman of Management Board of Vinare State re-insurance joint stock company, representative of State capital at the company said that SCIC have increased the efficiency of the State capital and the management of Vinare, and assisted it in forming strategic partnership with a big world insurance group. After the equitization, the capital of the company increased to nearly VND2,500 billion, Mr Tuyen added.
Shareholder without administrative power
According to the Statute, SCIC is State shareholder and has no administrative power at the enterprise. Nonetheless, the role of the big shareholder remains vague and causes some confusion. Mr Hoc admitted that SCIC often failed to cooperate timely with representatives when problems arising at the enterprises. SCIC staff are young, and inexperienced, unable to deal with problems in big number of enterprises engaging in different areas and sectors. As a result, problems cannot be solved timely and efficiently.
A business director and representative of State capital said that there are many representatives at the enterprises and the responsibility is not clear-cut. While some represent State capital in several enterprises and could not discharge their duties. It is important that SCIC should downsize its management scale and increase efficiency, accelerate capital withdrawal in areas that no longer require State control, the director concluded.
In fact, SCIC is an enterprise and has no real power in the management. In certain provinces, local authorities and not SCIC nominate representatives of the State capital. Furthermore, SCIC is not paying salaries, bonuses and allowances to representatives at the enterprises. All that makes the relationship between SCIC and representatives unreliable and the management of State capital inefficient.
Mr Vu Kim Bang, Chairman of Management Board and Director of Medical Equipment joint stock company said it must be reconsidered whether the representative receive salary and bonus from SCIC or from the enterprise. The role of the representatives must be clearly defined. SCIC should train, upgrade and provide representatives with information on policy and business opportunities.
Lan Anh
Vietnamese
