The Prime Minister has decided to rearrange, renew, develop and improve the effectiveness of Vietnam’s state-owned enterprises.
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| Managing agencies are required to conduct a comprehensive review on economic groups operation and report to the PM. (Illustrative photo) |
Ministries, ministerial-level agencies, government-attached agencies, People’s Committees of provinces and cities under direct management of the central government, management boards of state economic groups and corporations, have all been directed as follows:
- Begin developing, reorganising and renewing plans for state-owned enterprises from now until 2015 so that state-owned enterprises could focus on Vietnam’s most important fields and sectors; and once these plans have been developed, submitting them to the PM for approval.
- Reorganise the state corporations that do not operate effectively, have suffered losses for years and do not have the ability to recover; hand out proper disciplinary actions to responsible organisations and individuals involved; and report these actions back to the PM by the end of the third quarter of 2010.
- Strengthen management, inspection and supervision of state-owned enterprises; timely discover and effectively handle any rising problems; conduct annual reviews and evaluate the effectiveness of businesses performance; timely award people with outstanding achievements and simultaneously take strict disciplinary action against those who violate the law and regulations.
Ministries that manage state-owned economic groups and corporations have been asked to conduct a comprehensive review on the operation and current business structure of those economic groups and corporations that they are in charge of; clearly define which is the main business of each of those economic groups and corporations; readjust capital investments of businesses that are not related to the main business; make necessary changes to the organisational model of those economic groups and corporations; and submit a detailed report to the PM before December 31.
Keeping the reorganisation of state-owned corporations and companies in line with each of its main business will help form strong enough state-owned corporations that can effectively perform the role and tasks assigned.
The PM has also ordered the management boards of state-owned economic groups and corporations, while the provision of current law and regulations has not yet been modified, to report to authorised state management agencies for approval before deciding on these 3 matters:
- Overseas loans must adhere to the law and have the consent of the related managing ministry as well as approval from the Ministry of Finance.
- Business establishment, joining capital to form a business, adding businesses, must be in accordance with the law, appropriate with the business’s development strategy and planning, and approved by the related managing ministry.
- Any 5-year business production and development investment plan of economic groups and corporations 91 (corporations established and operated under the Decision No.91/TTg dated March 7, 1994) has to be considered and approved by the related managing ministry as well as the Ministry of Investment and Planning (MIP), Ministry of Finance, and submitted to the PM for approval. The related managing ministry as well as the MIP and the Ministry of Finance are required to consider and approve annual business production and development investment plans.
The Ministry of Home Affairs has also been assigned by the PM to chair and work in coordination with the Ministry of Labour, War Invalids and Social Affairs as well as relevant agencies to research and develop mechanisms attracting competent managers and expanding the types of contracts in hiring competent managers.
