Removing legal barriers to support SOEs’ future development 

12:31 | 18/01/2020
The Committee for Management of State Capital at Enterprises (CMSC) on January 16 held a meeting to review performance in 2019 and set key tasks for 2020, with legal barriers facing its members being a focus.
removing legal barriers to support soes future development

The event, which was attended by Prime Minister Nguyen Xuan Phuc, stated that state-owned enterprises (SOEs) and corporations in 2019 have fulfilled their business targets, helping to increase labourers’ income and developing state capital, thus greatly contributing to the nation's economic development.

Especially, some SOEs such as PVN, Vinacomin, VNPT, Vietnam Airlines, ACV, and MobiFone outperformed several targets during the year.

The consolidated revenue of 19 SOEs under the CMSC was VND1.48 trillion ($64.35 billion), up 6.4 per cent on-year, while consolidated pre-tax profit ascended by 28 per cent on-year. Total state budget contribution rose by 17.6 per cent on-year and the total export turnover of key items of SOEs under the committee reached $2.22 billion.

Despite these achievements, there remain some shortcomings in their operations. Some SOEs still failed to meet their business targets, while some projects were invested ineffectively, producing sluggish growth.

In terms of restructuring, equitisation and state stake divestment remain stagnant. Some still face legal barriers in their operations. At the meeting, Vinacomin, Petrolimex, Vietnam Rubber Group (VRG), and others talked about legal problems and urged the committee and other relevant agencies to soon solve them to support their future development.

Addressing the event, the PM highlighted the contributions of SOEs. He asked the committee to soon deal with the shortcomings. The government leader urged the CMSC, ministries, agencies, and SOEs to change their mind-set and to create more favourable conditions for business development.

“The restructuring of SOEs should be further accelerated with the support of advanced technology, while increasing innovation and governance capacity in line with international standards, and mobilising resources for development, thus continuing to increasing the role of SOEs as the key force of national social-economic development,” PM noted.

Looking forward, the CMSC has several major tasks to fulfil the targets for this year. Accordingly, it will help to solve SOEs' problems in operation, investment, restructuring, equitisation, and state stake divestment. It also plans to work with ministries and agencies on amending some regulations to facilitate its members, including some regulations on the Law on Investment, the Law on Construction, the Law on Public Asset Use and Management, the Land Law, and the Railway Law, among others.

The committee will also work with the authorities of Hanoi, Ho Chi Minh City, and other provinces to find solutions to land and planning issues facing SOEs. Also, it will approve the business and investment plans for the SOEs in 2020.

Established over one year ago, currently, the CMSC is responsible for managing the 19 state corporations and groups which have total assets in excess of VND2.3 quadrillion ($100 billion) and over VND1 quadrillion ($43.48 million) of state capital in these corporations.

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By Bich Thuy

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