CIEM Proposes Solutions to Exercising State Ownership at Enterprises

On December 10, 2012, the Central Institute for Economic Management (CIEM) in collaboration with The Beyond WTO Programme (B-WTO) organised a conference to announce the report on "Changing organisation models of exercising representative functions of State ownership at SOEs and the State capital at enterprises" to collect opinions and feedback before completing and submitting it to the Ministry of Planning and Investment and the Government in 2013.

 

The report is based on research, domestic and international surveys, inspections, seminars, talks and consultations with the support of the Australian Agency for International Development (AusAID) and the British Department for International Development (DFID) through B-WTO.

 

The report proposed solutions and organisation models for exercising representative functions of State ownership at SOEs and State capital at enterprises to overcome the weaknesses and shortcomings of current models; enhancing efficiency and effectiveness of State management and ownership in SOEs; and boosting the operating efficiency of SOEs. These efforts are expected to quickly allow the Vietnamese economy to be widely treated as a full market economy under international practices.

 

The report is an important source of information for building the "Continuing to renovate and improve the efficiency of State-owned enterprises, ensuring their leading role in the socialism-oriented market economy" Scheme (already submitted to the sixth meeting of the Central Party Committee, 11^th term), the “Splitting representative functions of State ownership with State management functions of State agencies and changing State ownership rights in SOEs” Scheme, and the “Study on formation of specialised agency in charge of ownership rights at enterprises” Scheme.

 

Dr Le Xuan Ba, CIEM Director, said, given the current economic context, the State needs to seek for solutions and organisation models for performing representative functions of State ownership in SOEs and State capital in enterprises to overcome existing weaknesses and shortcomings of current models; and enhancing efficiency and effectiveness of State management and ownership in SOEs.

 

Dr Tran Dinh Thien, Director of the Vietnam Economics Institute, said that the report is the result of maturation of SOEs - the driving force of the economy in the context of an entire economic restructuring, where SOE restructuring is a major focus. However, the report does not cover sufficient roles of independent monitoring mechanism - sanctions and mechanisms for representatives of State ownerships, managers of State capital use, and openness and transparency principle.