VietNamNet Bridge - Though observers have different views about the establishment of a ‘super committee’ to manage state capital and assets in enterprises, they agree that the current policy will come to an end.


{keywords}

Vietnam will have a super-committee in charge of managing state's capital in enterprises



A task force set up under the PM’s decision, headed by Deputy Prime Minister Vuong Dinh Hue, is making hectic preparations for the establishment of the super committee within the first quarter of 2018.

Many analysts doubt the feasibility of the idea, saying that the super committee will make the state apparatus more cumbersome, because its functions seem to coincide with that of the existing SCIC (State Capital Investment Corporation). Both of them manage the state’s capital in enterprises.

However, ministries and branches will not control state corporations under the new policy. Finally, Vietnam has found a way out to stop the bad policy of decades.

Former Minister of Trade Truong Dinh Tuyen said in principle policymakers must not act as enterprise managers. Therefore, the removal of the business management function from ministries is necessary.

Tuyen cited an example of negative consequences. When the Competition Administration Department (CAD) planned to probe the denouncement that the Vietnam Steel Corporation conducted unhealthy competition activities, it received a call from a deputy minister who asked to stop the probe.

Vo Tri Thanh, an economist, and former deputy head of CIEM (the Central Institute of Economic Management), commented that though many issues related to the super committee remain controversial, the committee will bring two benefits – help minimize the conflicts of interest and accelerate the process of reducing the State-owned sector.

Though observers have different views about the establishment of a ‘super committee’ to manage state capital and assets in enterprises, they agree that the current policy will come to an end.

This was a task for SCIC upon its establishment but it did not reach the goal.

Meanwhile, Pham Chi Lan, also a renowned economist, gave a cautious answer when asked if the super committee is a good solution.

“It seems there’s no other choice at this moment. If it succeeds, it will depend on the committee staff, especially the head,” she said.

“This must include technocrats, who have good economic management skills, not political,” she said.

Nguyen Duc Chi, chair of SCIC, denied that the functions of the super committee and SCIC would overlap.

“The government will assign tasks to SCIC and the super committee in a reasonable way so as to optimize the use and management of state capital in enterprises,” he said.


RELATED NEWS

Which model should be used for the super committee?

Firms in key fields put under super-committee management


Mai Thanh