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Tighter oversight of State firms urged
Vague regulations on State management of State economic groups have caused difficulties not only for the State's supervision over its capital but for economic groups as well, according to Director of the Central Economic Research and Management Institute Le Xuan Ba.
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Engineers examine equipment at Dak Nong Transformer Station. Unclear rules on management of State-owned enterprises are being blamed for their inefficiency. |
To solve this problem, deputy head of the financial corporation department under the Ministry of Finance Dang Quyet Tie said it was vital to ensure a way to evaluate the real financial situation and potentially financial risks of State economic groups and corporations.
Monitoring of representatives of State ownership in State economic groups and corporations should be carried out during business management and administration, said Tien. But implementing the rights of representatives of State ownership should not be involved in too many agencies.
Economists also suggested regulations on management of the groups should take into account representatives of State ownership in economic groups or corporations operating through enterprise model (a State capital investment company). The possibility of establishing a specialised State agency as the representative of State economic groups or State-owned corporations should also be considered.
Ba said quarterly and annual reports of State business groups and State-owned companies on their capital investments and earnings should be publicised.
The economic group model was first piloted in 2005. It was not until 2009 that Decree No 101/ND-CP was passed by the Government on trial establishment, organisation, operation, and management of State economic groups was issued. However, the decree has come under criticism for being inadequate and poorly implemented.
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