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Stand on their own (26/08)
26/08/2010 - 15 Lượt xem
How do you view the recent changes made to SOEs?
When the new Law on Enterprises took effect on July 1, 2006, it clearly stipulated that within four years state-owned enterprises (SOEs) had to convert and operate under the Law no later than July 1, 2010. At that point the Law on State Enterprises would no longer be effective. The transformation process should have started at that time. The government also announced a program to equitise SOEs so that by 2010 most of them would be equitised and the State would only keep a certain number of one-member limited liability companies, in which the only member is the State.
However, since 2006 not in any single year was the equitisation plan met. All SOEs have chosen a way of “standing their ground” and waiting until the end to avoid equitisation. Some have raced to become an Economic Group. Even today, there are some SOEs that still want to be an Economic Group. The Vinafood 1 and Vinafood 2 Corporations have just proposed that.
From the government side, only at the end of March did the Prime Minister issue a document requesting all SOEs to quickly change to meet the deadline of July 1, 2010. Government offices such as the National Steering Committee for Enterprises Reform and the Ministry of Finance should have enforced the process. Each year when they reported about the slow equitisation process, they should have proposed the government have a clear roadmap or even list the companies that would be equitised or transformed and when, rather than allowing a large number to wait until the last minute before converting, which is the current situation.
There is still concern that the government will continue to provide advantages to the transformed SOEs. What are these advantages?
The State has poured a lot of resources into the SOEs. Firstly, financial resources. SOEs can access capital from the State budget, from ODA, from banks, from international bond issuances, etc., quite easily. SOEs also have a lot of advantages in borrowing money. In public investment, most works are done by SOEs and so infrastructure development becomes another big source of funding for them.
In natural resources, the government gives SOEs most exploitation rights, such as in crude oil, gas, coal, minerals, ores, etc. SOEs also have a lot of land that has a very high commercial value. Many land plots have been in the hands of SOEs for many years without being used.
Under the law, enterprises in all sectors have equal rights to do business. However, in many aspects, SOEs run their business with many advantages, which create barriers for foreign invested enterprises and domestic private sector enterprises.
What can the government do to make the transformation process achieve the expected results?
Transforming SOEs into one-member limited liability companies is a first step. There are many legal issues left open, such as limitations on the State as the owner in limited companies and the nature of the relationship between the government and the enterprises. As limited liability companies, they will have different methods of operation compared to SOEs. How will they change in term of corporate governance, applicable regulations or operation methods? Therefore, the first duty of government offices now is to quickly design the legal framework and the regulations applying to limited liability companies operating under the Law on Enterprises, in which the State is the single owner. Also, they have to identify who “the State” is. It should not be “the State” in general, but specify which government agencies and individuals take responsibility for enterprises.
The government should urge enterprises to have their new regulations and operation principles. If enterprises do not have them, the government should take the initiative in spelling them out, rather than waiting.
Regarding the financial mechanism, it should be clarified that the State budget will not be made available to enterprises, once they have received sufficient capital. If the enterprises want to expand their business, they have to mobilise capital from other sources, and the government should not guarantee loans or issue bonds.
Source: Vneconomy
