Accountability key for SOEs: Prime Minister

Prime Minister Nguyen Xuan Phuc asked accountability to be enhanced in the restructuring and divestment of State-owned enterprises (SOEs) to improve the efficiency of the process.

accountability key for soes: prime minister hinh 0
Dung Quat Bio Ethanol Plant, one of the 12 loss-making projects under the management of the Ministry of Industry and Trade, resumed operation in October, 2018.

Under Directive 01/CT-TTg dated on January 5, Phuc asked ministries, ministerial-level agencies, local authorities and SOEs to complete the approval or submission the restructuring plans for approval before January 15, in which, the restructuring roadmap and accountability must be clarified.

The directive said that the operation of restructured SOEs improved considerably and contributed to stabilising the macroeconomy, citing that 147 were equitised in the period from 2016 to November 2018 and nearly VND155 trillion (US$6.74 billion) in State capital collected from divestments out of none-core businesses in the period.

However, the directive pointed out that the results of equitisation and divestment of SOEs were still below targets and the operation efficiency of SOEs was modest compared to the resources in their hands.

According to the directive, equitisation and capital divestment faced difficulties in evaluating corporate value. Especially, the lack of accountability, loose discipline, group interest and outdated thinking were hindering the progress of innovation.

Phuc stressed that the accountability of individuals and organisations for the stagnation of restructuring and capital divestment at SOEs and the listing of equitised SOEs on stock exchanges must be enhanced, adding that strong punishments would be raised to prevent and handle violations.

Ministries and ministerial-level agencies must speed up and complete the legal framework for restructuring and improving the operation efficiency of SOEs in the first quarter of this year.

Focus must be placed on renovating corporate governance and improving the operation efficiency and competitiveness of SOEs after equitisation, Phuc asked.

SOEs must be a pioneer in renovation and applying technologies and new business models such as sharing economy, e-commerce and electronic payments to operate more efficiently and meet the requirements of the digital era and Industry 4.0.

The directive also asked ministries and ministerial-level agencies to enhance supervision to prevent losses to the State capital during the restructuring of SOEs, at the same time, and be determined to handle loss-making projects following market mechanisms.

The accountability of individuals and organisations which caused losses to the State capital must be clarified and violations must be handled strictly, it said.


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