State enterprises to focus on major business fields

A directive has been issued that orders State-owned enterprises to focus on their core production and commercial objectives.

Directive 1568/CT-TTg, issued last Thursday by Prime Minister Nguyen Tan Dung, sets the agenda for State-owned economic groups and corporations to 2015.

It requires ministries, economic sectors and People’s Committees that are responsible for State-owned corporations to deliver a comprehensive evaluation of their performance by December 31.

This includes management and investment in non-core business sectors.

Ministries, economic sectors and localities should reinforce their management, inspection and supervision of State-owned enterprises to identify and effectively solve problems during any restructuring, the directive says.

They will also have to review the work each year.

The directive makes the Finance Ministry responsible of checking, supervising and evaluating the effectiveness of production, business and the mobilisation and use of capital.

The ministry will also have to monitor outstanding loans.

Equities corporations must seek approval from State offices before seeking foreign loans or joining with joint-stock partners to establish other enterprises during the next five years.

The directive also instructs ministries, economic sectors and People’s Committees to identify and report losing or poor performing State-owned enterprises to the Prime Minister by the end of the third quarter.

The Ministry of Labour, Invalids and Social Affairs and the relevant agencies must devise policies to attract excellent managers for the enterprises, the directive says. — VNS

Tags: Vietnam State enterprises