Vietnam needs talents to build an economy with modern corporate governance, but problems remain at the state level.

The State Capital Investment Corporation (SCIC) successfully sold capital in 999 enterprises as of June 30, said Deputy General Director Le Song Lai during a conference on July 17.

The Ministry of Industry and Trade has transferred the jurisdiction over State capital at 11 out of 12 loss-making megaprojects to the Commission for the Management of State Capital at Enterprises.

Vietnam’s ratification of the CPTPP and the EVFTA compels the country to liberalize the state sector.

The Vietnamese government’s investment arm State Capital Investment Corporation (SCIC) has announced the list of 108 state-owned enterprises (SOEs) subject to divestment in 2019, Vietnam Finance reported.

The monthly salary offered to chairs and CEO of state-owned enterprises (SOEs) has been described as ‘too low’ compared with the managers of private enterprises. However, many workers still compete for the posts.

MobiFone, VNPT, and the other 17 companies have been exposed to the gunfire of the Commission for Management of State Capital at Enterprises’ (CMSC) financial supervision.

According to the government’s report, since more than 81 percent of the country’s public companies have charter capital of over VND30 billion, the revision thus will affect only a minority of firms.

Experts warn that if state-owned enterprises (SOEs) make outward investments, the state would lose capital.

With the slow equitisation and restructuring of major state-owned enterprises, the Vietnamese government has been urged to accelerate the process with an aim to create more opportunities for the private sector.

The Commission for the Management of State Capital at Enterprises (CMSC) this year will oversee the finance of 19 State-owned groups and corporations.

State-owned enterprises (SOEs) have been advised to remain cautious when making outward investments because the possibility of success is low.

Some 100 state firms would be subject to privatization in 2019, while the number slated for state divestment is 193.

The adoption of International Financial Reporting Standards will be compulsory for State-owned enterprises, listed companies and large-scale unlisted public companies after 2025, according to a draft project the Ministry of Finance.

VietNamNet Bridge - The huge debts incurred by state-owned enterprises (SOEs) and their ineffective operations have been blamed on ineffective monitoring.

 VietNamNet Bridge – Deputy Prime Minister Vuong Dinh Hue talks to Nhà báo & Công Luận (Journalist and Public Opinion) newspaper on the creation of a new management committee for State-owned enterprises.

Because of the difficulties in arranging investment capital, many state-owned economic groups want to withdraw from large projects. 

The Government Inspectorate will carry out an inspection targeting State-owned enterprises (SOEs) in which the Ministry of Industry and Trade (MoIT) controls State capital.

With the establishment of a working group on the formation of a special committee responsible for managing State capital at enterprises, Vietnam has taken the first step to realize the plan initiated in 2016. 

The list of SOEs put under control of the ‘super committee’, shows that the government wants control in some key business fields – energy, natural resources, infrastructure and agricultural land.