Sep 30, 2018 / 21:56

Launch of "super committee" to improve efficiency of state sector: PM

Nineteen state groups and corporations under the management of the Commission for the Management of State Capital (CMSC) play an essential role in Vietnam`s economy, holding two-thirds of total state capital, according to the government portal.

The launch of Vietnam's CMSC, dubbed as "super committee", is aimed to improve efficiency of state-owned enterprises (SOEs), in turn providing greater competitiveness for the economy, stated Prime Minister Nguyen Xuan Phuc. 
The launch of Vietnam's Committee for State Capital Managment. Source: VGP.
The launch of Vietnam's Commission for State Capital Managment. Source: VGP.
The commission's establishment is a key step differentiating state management function of government agencies and doing business of enterprises, Phuc said at the launch ceremony of the committee on September 30. 

The CMSC will take over the role of state capital representative at 19 leading state-run groups and corporations, which manage capital of combined VND1,000 trillion (US$43.02 billion) and assets of over VND2,300 trillion (US$98.96 billion), Phuc added. 

Those corporations in subject play an essential role in Vietnam's economy, holding two-thirds of total state capital, stressed the PM. 

Phuc requested the CMSC to complete its preparation and prevent possible loopholes for corruption, while focusing on applying information and technologies in operation. 

Key tasks of the commission included management of state capital; financial supervision and efficiency evaluation; appraisal of projects and investment activities; risk management and regulating working mechanism for state representatives at SOEs.

Topping the list of 19 SOEs is State Capital Investment Corporation (SCIC), which was under the management of the Ministry of Finance.

The remaining 18 SOEs are being run by four ministries which are the Ministries of Industry and Trade (MoIT), Transport (MoT), Agriculture and Rural Development (MARD), and Information and Communications (MIC). Most of the names on the list are enterprises belonging to the MoIT and MoT, comprising of six groups and six corporations.

Of the 19 on the list, the state now holds a 100% stake in 14 SOEs. These include Electricity of Vietnam (EVN) and PetroVietnam, the two largest state-owned conglomerates in terms of stockholder equity VND431 trillion (US$18 billion) and VND205 trillion (US$9 billion), respectively, according to their 2016 audited financial reports. The two had total assets of VND770 trillion (US$33.8 billion) and VND692 trillion (US$30.3 billion) as of 2016, respectively.