VietNamNet Bridge – National Assembly deputies yesterday (Nov 11) suggested creating a Government agency to supervise the use of State funds by State-owned enterprises.

Deputies discussed possible changes to the draft Law on the Management and Use of State Capital during meetings yesterday morning. The law's Article 5 aims to make State investments in State-owned businesses more efficient, and ensure a level playing field with enterprises from other economic sectors.

Some said the law needed to better define how State capital was used by State-owned enterprises.

Truong Van Vo from Dong Nai Province said Viet Nam needed to overcome its weaknesses in managing State capital, particularly in big corporations. The country was in the middle of structural reforms that would affect public finances, he said, so it was important to create a Government agency to correctly manage State enterprises.

"This should be considered a breakthrough in the management of these enterprises," Vo said. "We can separate the management of State funding for enterprises from ownership."

Deputy Tran Ngoc Vinh from Hai Phong said the law also failed to specify which sectors the State should focus on, adding that investing in specific areas was essential during a time of economic restructuring and social stabilisation.

He added that with negotiations on 15 free-trade deals were expected to end by 2020, Viet Nam was set to become a key link in an expansive economic network, including 18 APEC member economies.

Vinh said the law-compilation committee needed to clearly state sectors that did not need Government investments and those that needed to be fully funded.

He asked the law-compiling committee to specify more about the responsibilities of officers and ownership representatives when managing State enterprise investments.

"This is an important condition that will ensure production efficiency while adding more value to the State capital investment in the enterprises," Ve said.