Aug 14, 2018 / 19:10

Vietnam Super Committee to manage fewer state firms

The Hanoitimes - The committee will not manage SOEs` performance, but only look after state capital and assets.

In the latest draft on its operation, Vietnam's Committee for State Capital Management, dubbed as the Super Committee, will manage state capital in 19 state-owned economic groups and general corporations instead of 21 initially planned, BizLIVE reported. 
Illustrative photo.
Illustrative photo.
Under the proposal, those 19 state-owned enterprises (SOEs) will be transferred from their respective management agencies to the committee. Cuu Long Corporation for Investment Development and Project Managmenet of Infrastructure (Cuu Long CIPM) and Vietnam Multimedia Corporation (VTC) are no longer on the latest list. 

The committee previously included 21 groups and corporations with estimated total capital and asset value of up to VND5,400 trillion (US$232.27 billion), equivalent to 50% of the total state capital in all SOEs. 

Topping the list is State Capital Investment Corporation (SCIC) 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. Fifteen SOEs on the list are ones 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 their 2016 audited reports. The two had total assets of VND770 trillion or US$33.8 billion and VND692 trillion or US$30.3 billion as of 2016, respectively.

The committee will not manage SOEs' performance, but only look after state capital and assets. The committee will have its own legal status.