Hanoi (VNA) – The 15th National Assembly (NA) passed the Law on Management and Investment of State Capital in Enterprises and the Law amending and supplementing a number of articles of the Law on Standards and Technical Regulations at its ongoing ninth session on June 14.
The newly adopted Law on Management and Investment of State Capital in Enterprises is expected to reduce around 30% of existing administrative procedures for state-owned enterprises (SOEs), compared to current regulations.
Presenting the explanatory report on the draft law, Chairman of the NA's Economic and Financial Committee Phan Van Mai stated that the law adheres to the principles of decentralisation and delegation of authority, while avoiding undue interference in corporate governance. Based on feedback from deputies, the NA Standing Committee instructed relevant bodies to further revise the draft to clarify the rights and responsibilities of SOEs.
Under the new law, SOEs will have the authority to determine or adjust their business strategies and annual business plans; make capital mobilisation decisions; and guarantee loans for companies in which they hold more than 50% of charter capital, provided the total guaranteed value does not exceed their actual capital contribution at the time of the guarantee.
Additionally, SOEs may lend to these subsidiaries, with the total loan per company not exceeding the value of the parent company’s actual capital contribution at the time of lending. They are also empowered to make investment decisions in line with regulations on investment and other relevant legislation, as well as determine matters such as salaries, remuneration, and bonuses.
Meanwhile, the draft law amending and supplementing a number of articles of the Law on Standards and Technical Regulations was approved with 432 out of 448 participating deputies voting in favour.
To reduce administrative burdens and associated costs for businesses, the law expands the use of conformity assessment results as a basis for declaring product compliance. It also exempts products and goods that already meet quality management requirements under specialised legislation from having to undergo further declarations of conformity.
In a push to promote digital transformation in administrative procedures, the law simplifies the process of registering conformity declarations. Organisations and individuals will only need to submit their declarations to the national database on standards, metrology and quality.
In addition, the newly adopted law revises procedures for developing, appraising, and issuing technical regulations. Appraisal authority will be assigned to agencies responsible for issuing Vietnamese standards, as designated by the Government./.
