National agency to check SOE health
National agency to check SOE health
The National Financial Supervisory Commission (NFSC) will supervise several State-owned enterprises (SOEs)'s financial health this year to ensure efficiency.
The proposal, currently in its initial stage, has been sent to the Prime Minister for consideration, the NFSC's Chairman Vu Viet Ngoan said on Wednesday, during a meeting to discuss the implementation of 2015's goals.
The monitoring of the financial health of SOEs is aimed at enhancing their management and transparency.
Ngoan said restructuring the SOEs is crucial for reforming the country's economy, due to which keeping tabs on the financial health of large SOEs, is critical.
The supervision will also help determine whether the restructuring process is on the right track of eliminating risks in the financial system.
Ngoan revealed that some eight or nine corporations will be placed under supervision in 2015, but their names will remain a secret, online newspaper Infonet reported.
The NFSC's Chairman pointed out that the criteria for supervision is based on international standards, adding that 2015 will be the first year in the NFSC's three-year plan, where it applies new methods of financial analysis, following in the footsteps of international standards.
The new method will also help provide a more comprehensive and precise evaluation of the financial health of SOEs, which can be used for making adjustments in the restructuring process.
During 2015, the commission will also continue to enhance the efficiency of financial supervision while implementing deeper analysis of the stock market, insurance market and potential risks in the financial market.
