State-owned firms face deadline

The process to establish State-owned enterprises (SoEs), which must be done by tomorrow, needs to be given careful consideration in order to ensure that the companies abide by the country’s legal framework.

In Ha Noi yesterday, attendants at the forum, “Issues of State-owned enterprises before and after model changing,” discussed the difficulties and opportunities for SoEs.

The forum was organised by the Central Institute for Economic Management (CIEM) and Viet Nam Chamber of Commerce and Industry (VCCI).

In a speech delivered at the event, Chairman of the VCCI Nguyen Tien Loc said the changing model of SoEs is one of the most important issues concerning the country’s economic renewal process.

Loc said the change is expected to improve the effectiveness and competitiveness of the enterprises.

He added that there are many issues that need to be resolved in order to make the process succeed.

The head of CIEM, Le Xuan Ba, said it was estimated that as many as 1,000 SoEs would miss the deadline for them to change their status.

Nguyen Dinh Tai, director of CIEM’s Advisory and Training Management Centre and vice chairman of the SoE Club, said Viet Nam is facing shortcomings with respect to the country’s definition of ownership of its one-member limited companies.

This makes it difficult to create an effective management structure for the SoEs.

Tai added that the Government has not defined the principles that clarify state ownership rights.

Economists also said State corporations and groups have yet to resolve their regulations for their businesses and subsidiaries including methods, models and implementation of State ownership rights.

The current regulations have not addressed investment among members of corporations and groups, which could result in financial risks for investors.

Nguyen Kim Toan, head of the Government Office’s SoEs Renewal Department, said authorities and SoEs should draft regulations for businesses so that they will follow Business Law next month. — VNS

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