Vietnam PM Urges Further Inspections on State-owned Enterprises

The Vietnamese prime minister has urged the Ministry of Finance to enhance inspections on financial management at state-owned enterprises (SOEs), aiming to timely detect their wrongdoings, the Government Office said.

The ministry is required to tighten control over operations SOEs which hold controlling interest in realty, banking, securities and insurance projects.

The PM has called on the Ministry of Planning and Investment to check SOEs’ investment activities, while asking the Ministry of Labor, Invalids and Social Affairs to inspect their labor management policies.

The Office also said the Ministry of Internal Affairs will submit the government leader a plan on appointing capital representatives for wholly SOEs this year.

Earlier, the government has also asked the Ministry of Finance to enumerate assets of wholly SOEs in order to boost their efficiency of capital use and limit operations into non-core business activities.

A report released by the State Audit of Vietnam late 2009 showed that it detected a total inappropriate spending of VND6.56 trillion (US$345.26 million) from state agencies economic groups and organizations in the first 11 months of the year.

The PM has allowed many SOEs to operate as limited companies after they fail to complete equitization prior to July 1 this year, including Vietnam Cement Industry Corp (Vicem), Vietnam Railway Corporation, Vietnam National Textile Garment Group (Vinatex), Electricity of Vietnam Group (EVN) and Song Da Group.

Tags: Vietnam companies, Vietnam enterprises, Vietnam state-owned firms