Gov’t identifies hurdles of SOEs equitization process

Deputy PM Vuong Dinh Hue: Operational efficiency of the SOEs remains limited and incommensurate with their allocated resources.

Hue, who is also Head of the Steering Committee for Enterprise Reform and Development, stressed the above point while addressing a conference to seek way to accelerate SOEs reform and efficiency improvement in Ha Noi on Wednesday.

The conference drew the participation of PM Nguyen Xuan Phuc, Deputy PM Trinh Dinh Dung and leaders of over 350 delegates from ministries, sectors, localities, economic groups and corporations with an aim to seek best ways to further improve the efficiency of SOEs and accelerate the equitization and divestment process.

In a frank atmosphere, Deputy PM Hue urged the delegates to the conference to dig into the SOEs equitization process to have exact insight.

A number of policies have been introduced to spur equitization yet many regulations are not really appropriate, including those related to evaluation of the values of trademarks and land use right, Hue pointed out.

Many other controversial issues that have not been decided include types of SOEs that the State should pull out capital, management of capital at equitized enterprises, and salary regimes.

Regarding inefficient and loss-making enterprises, the biggest hurdle is the settlement of engineering, procurement and construction (EPC) contracts and legal matters arising between investment and production stages, the Deputy PM said.

Following the establishment of the State Capital Management Committee-the only focal point of State capital management, 19 economic corporations and groups have been transferred from ministries and central agencies to the Committee. The next step is to identify rights and responsibilities of the Committee and the ministries and agencies to ensure smooth operation of the transferred enterprises.

Deputy PM Hue pressed the delegates to figure out measures to enhance the capacity of implementation organization as it is the weakest point.

He also pointed out that corruption and wastefulness is one of the main reasons that have hindered the SOEs equitization process.

“We need to discuss and put forward plans with concrete tasks and solutions for each ministry, agency, locality, enterprise to ensure right understanding and take more drastic and effective action,” said Deputy PM Hue./.

By Quang Minh