New rules enhance efficiency of using capital in SOEs

New rules enhance efficiency of using capital in SOEs

Under new regulations on supervision, inspection, evaluation, classification, reporting and disclosure of information in the management and investment of State capital in enterprises, criteria for evaluating and classifying SOEs are based on the level of task completion and capital utilisation efficiency.

For enterprises engaged in business activities, the classification is based on the results of achieving indicators related to revenue, profit, profitability ratio, and investment. —Photo vneconomy.vn

The Government has issued new criteria to evaluate and classify State-owned enterprises (SOEs), aiming to strengthen oversight and accountability in the management and investment of State capital.

Under Decree No. 365/2025/NĐ-CP on supervision, inspection, evaluation, classification, reporting and disclosure of information in the management and investment of State capital in enterprises, the assessment of SOEs is based on task completion and the efficiency of capital utilisation.

Specifically, for enterprises where the State holds 100 per cent of their charter capital, evaluation and ranking focus on five main groups of indicators assigned by the owner’s representative agency. These include total revenue; net profit after tax; return on equity; the value of work completed or disbursed for investment projects managed by the enterprise or approved by the owner’s representative agency; and the level of completion of assigned tasks through the provision of public goods and services and political, defence and security duties.

Based on these indicators, enterprises are classified into three levels, A, B and C, reflecting the extent to which they meet the targets set by the owner’s representative agency, typically a ministry or a State body authorised to act on behalf of the Government as the shareholder.

For enterprises engaged in business activities, classification is determined by performance against indicators related to revenue, profit, profitability ratios and investment.

For enterprises in which the State holds more than 50 per cent but less than 100 per cent of their charter capital, evaluation is also based on four criteria.

These include performance against the annual business plan approved by the general meeting of shareholders or the board of members, depending on whether the enterprise is structured as a joint-stock company or a limited liability company; the level of completion of tasks related to the provision of public goods and services assigned or ordered by the State; the fulfilment of political tasks assigned by competent authorities and national defence and security duties; the overall operational efficiency of the enterprise, excluding specific factors and objective impacts; and the results of monitoring and inspection of State capital management and investment.

The representative of State capital is responsible for preparing an annual report evaluating the enterprise’s performance in the previous year and submitting it to the owner’s representative agency before August 15.

Based on the report, the owner’s representative agency conducts an evaluation by comparing actual results with approved plans, providing a basis for management, supervision and efforts to improve the efficiency of State capital use in enterprises.

The new framework is seen as part of Việt Nam’s broader efforts to modernise SOE governance, improve transparency and align State capital management more closely with international norms on accountability and performance-based oversight.

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