Given that many state-owned enterprises (SOEs) are making losses, the Government Inspectorate of Vietnam said that in addition to the irregular inspections, there must be scheduled inspections of these SOEs at least once every two years.
In recent times, many SOEs and state-owned economic groups of Vietnam have incurred losses or even gone bankrupt, leading to significant losses of state funds. However, regulations on inspection and supervision are inadequate and lack specific sanctions, so that warnings are not made in time.
Therefore, recently, the Government Inspectorate of Vietnam drafted a decree on supervision and inspection of SOEs for the observance of law and the implementation of the decisions of the owners. Currently the draft is completed and is under consultation by concerned ministries.
Accordingly, inspection activities will now be intensified. In addition to the irregular inspection of violations when detected, SOEs will be inspected at least once every two years for the observance of law and implement the decisions of the owners. The monitoring and inspection are also supplemented to warn against potential risks. The content relates to the observance of the legislation on capital management, financial regulations, organisation and operation of enterprise, compliance with the decision of the owners to implement business and investment plans, and decisions related to profits, funds, capital and assets.
Every 6 months, and every year, business owners must submit the results of monitoring reports to the Ministry of Finance, Ministry of Planning and Investment, the Government Inspectorate and other related agencies. Meanwhile, the inspection will be carried out regularly, if unexpected, the announcement must be made at least one day earlier.
The draft decree also specifies penalties for business managers, ministers, Chairman of the city and province people committee if violations are detected. Those committing minor violations would face reprimand and warning. Those committing severe violations would face wage reduction or dismissal from office. Minister or provincial chairman would face removal from office management for violations resulting in loss of capital.
The plan for supervision and inspection of State enterprises are built in the fourth quarter annually, based on the operations of enterprises.
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