Feb 05, 2018 / 17:47

State Capital Management Committee officially launched

The government issued on February 3 Resolution No. 09 on the establishment of the State Capital Management Committee.

The Committee is a specialized agency acting as the representative of the State, the owner of State-owned enterprises (SOEs), and capital contributor to enterprises.
Illustration photo.
Illustration photo.
It is expected to help the Government to efficiently manage and supervise State capital and assets at enterprises, as well as implement restructuring and state capital divestments at SOEs.

The move is aimed to boost the efficiency of SOEs and create a more transparent business climate, stressed Prime Minister Nguyen Xuan Phuc at a government meeting on January 4.

The Committee will have its own legal status, a seal bearing the national emblem and a bank account opened at the State Treasury. The committee will not manage state-owned enterprises’ (SOEs) performance, but only look after state capital and assets.

All enterprises will continue operating under the law and report their operational results to their relevant sector-specialized bodies such as finance, banking, environment, and industry and trade.

It is expected that 22 state-owned economic groups and general corporations operating in the fields of energy, transport, agriculture, and food will be put under the control of the super committee.

These currently belong to five ministries: Industry and Trade (MoIT), Transport (MoT), Agriculture and Rural Development (MARD), Finance (MoF), and Information and Communication (MIC). Most of the names on the list are enterprises belonging to MoIT and MoT, composed of six groups and six general corporations. Fifteen names on the list are enterprises where the state still holds a 100% stake.

​These include Electricity of Vietnam (EVN) and PetroVietnam, the two largest state-owned conglomerates in terms of stockholder equity (VND431 trillion or US$18 billion and VND205 trillion or US$9 billion, respectively, according to the 2016 audited reports) and total assets (VND770 trillion or US$33.8 billion and VND692 trillion or US$30.3 billion).

On January 15, Prime Minister Nguyen Xuan Phuc issued Decision No. 66 setting up the working group tasked with establishing the State Capital Management Committee. Deputy Prime Minister Vuong Dinh Hue was appointed as head of the working group and Nguyen Hoang Anh, the would-be Chairman of the Committee, as standing deputy head. Other deputy heads include Minister Mai Tien Dung, head of the Government Office; Nguyen Chi Dung, Minister of Planning and Investment; and Dinh Tien Dung, Minister of Finance.

The members of the working group are as follows:
• Nguyen Duy Thang, Deputy Minister of Home Affairs; 
• Le Tien Chau, Deputy Minister of Justice; 
• Cao Quoc Hung, Deputy Minister of Industry and Trade;
• Dao Minh Tu, Deputy Governor of State Bank of Vietnam; 
• Nguyen Duc Chi, chairman of State Capital Investment Corporation (SCIC); 
• Hoang Thi Ngan, director of the Government Office's Department of State Administrative Organisation and Public Affairs. 

The team supporting the working group consists of nine people, representing the Government Office and relevant government agencies. The working group is tasked with providing advisory to the Prime Minister on the establishment of the Committee on State Capital Management and will be dissolved after the completion of its task.