Tin mới
Go slow on State-owned enterprises
06/08/2010 - 20 Lượt xem
The deputy minister attributes the failure to an ineffective management model; inconsistent criteria for enterprise classification and confusion within restructured enterprises about their relations with their owner – the State.
Changes to the criteria for SoE classification has also slowed their restructuring into single-member limited companies, he says.
The deputy minister concedes the criteria and list for the restructuring has been neither stable nor long-term and this has led to difficulties with restructuring.
He suggests the introduction of regulations that show which executives are eligible for appointment as enterprise director.
He also wants new regulations that separate enterprise management from State agencies.
More specific regulations for the decentralisation of the ownership of restructured SoEs is also needed, he says.
Little change
Planning and Investment Ministry representative say there has been little change in the operational mechanism of restructured enterprises over former SoEs, especially in production, finance and employment policies.
There is also confusion about the rights and responsibilities of the State, which invests in the parent companies and the parent companies, which invest in the single-member limited companies.
The criteria has not been sufficiently specific prompting the arbitrary listing of SoEs eligible for restructuring as a single-member limited company.
The criteria is often limited to single industries or sectors although many SoEs work in more than one industry or sector.
Slow work
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Enterprise Law sets the rules |
| The changing of SoEs into single-member limited company – together with equitisation – complies with the Enterprise Law passed in 2005. The law consolidates the three previous laws governing enterprises into one and defines four types – private; limited; joint stock and joint-venture companies. The restructuring is intended to allow the enterprises more freedom to decide about investment, development and production. Together with equitisation, it’s a popular reform model. Although the State can hold up to a 100% stake in a single-member limited company, it no longer directly manages its operations. Instead, that is done by parent-companies that use State capital for investment. But the management must be separated from the ownership if the restructuring is to be of actual benefit to the enterprise, a Ha Noi National Economics University lecturer told Viet Nam News yesterday. The economist agreed the restructured companies had yet to improve the quality of their operations. This was unlikely to happen until the system of management was changed, he said. |
State-owned-Enterprise Restructuring Committee chairman Pham Viet Muon says the chief executive of as many as 64 per cent of single-member limited companies remain the same after restructuring.
This means there is little change to the way in which the enterprise is managed.
Hard work is needed if the 2007 – 2010 target for SoE restructuring is to be met, he says.
Two hundred and seventy one SoEs were restructured and 150 equitised in 2007 while the target requires 1,500 restructured and 950 equitised.
The total of SoEs equitised by the end of 2007 was 3,756 of 5,366 that were restructured
Seven hundred and forty five SoEs will have to be restructured by 2010 if the target is to be met.
Of these 517 are single-member limited companies, 105 are agricultural enterprises and 125 forestry enterprises.
The State will also hold a controlling stake in 60 other corporations.
The figures were made available at a seminar to discuss SoE restructuring and reform in Hanoi.
Pham Viet Muon agrees that confusion about land-use rights, defining trade-mark value and choosing strategic shareholders is also slowing the process.
Speakers at the seminar attributed the slow equitisation to the characteristics of major SoEs.
These required more consideration and preparation for their restructuring while the fall of the domestic stock market in late 2007 and early this year had delayed initial public offerings for several.
Changes in equitisation policy and new regulations for labour in 2007 had also made SoEs hesitant about decision making.
Source: Viet Nam News
