Committee proposed to regulate State firms

Committee proposed to regulate State firms

The Ministry of Planning and Investment would like to set up a committee in charge of managing and supervising State-owned enterprises (SOEs) in an effort to enhance their operational efficiency.

The ministry said that the foundation of this committee would help separate the ownership and the State management function, which complied with international practices.

This management model would help control the operation of SOEs while enhancing their accountability and creating a fair playing ground for SOEs and other economic sectors.

According to economic expert Tran Du Lich, the foundation of a committee in charge of managing and supervising SOEs was necessary, saying that no SOEs would be under the management of ministries or local authorities except public service enterprises.

He said the committee must be responsible for continuing the restructuring of SOEs – one of three focuses of economic restructuring.

However, expert Le Dang Doanh said that he was worried that the operation of such a committee would not be effective due to the large number of SOEs, adding that thorough privatisation was important.

Statistics showed that the number of SOEs was around 1,000, down from 5,655 in 2012 following privatisation, with more than 1,200 others with State holdings.

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