Economists and lawyers raised recommendations for State-owned enterprises (SoEs) and equitised SoEs to operate efficiently in a new condition after the State Enterprise Law is to expire on July 1.
Under a Government decision, all SoEs have to be turned into one-member limited liability companies after July 1 to run in line with the Enterprise Law.
Nguyen Kim Toan, Director of the Enterprise Renovation Department, said at a workshop on June 29 that an estimated 51 SoEs are unable to change the ownerships after the deadline. Most of them are loss-making companies and collective farms and plantations suffering land-related problems.
These companies, however, are required by the Prime Minister to work out concrete restructuring roadmaps, she said.
Lawyer Vu Xuan Tien, President of the Vietnam Consulting Company VFAM Share Holders’ Board, warned SoEs of possible failure if not pushing up reforms in operational procedures, especially managerial mechanism.
Dr. Tran Tien Cuong, Head of the Enterprise Renovation and Development Department under the Central Institute for Economic Management, said one-member limited liability companies. should separate the owners’ rights from the State management function and install owners’ supervision upon the companies’ operations through a special mechanism.
His view was shared by experts with many even emphasising the need to incorporate the supervision over the equitisation of one-member companies Ltd. into the National Assembly’s supervision agenda.
Experts also asked the Government to promulgate legal documents on equitisation and changing ownerships of one-member limited liability companies.
In this regard, the Enterprise Renovation and Development Department said that the Government is due to promulgate a new regulation on implementing the rights and duties of owners of enterprises with State investment.
After 18 years of implementing SoE equitisation, 5,565 SoEs have been either restructured or equitised, of which the latter made up 70.48 percent, according to the Enterprise Financing Department under the Ministry of Finance./.
Under a Government decision, all SoEs have to be turned into one-member limited liability companies after July 1 to run in line with the Enterprise Law.
Nguyen Kim Toan, Director of the Enterprise Renovation Department, said at a workshop on June 29 that an estimated 51 SoEs are unable to change the ownerships after the deadline. Most of them are loss-making companies and collective farms and plantations suffering land-related problems.
These companies, however, are required by the Prime Minister to work out concrete restructuring roadmaps, she said.
Lawyer Vu Xuan Tien, President of the Vietnam Consulting Company VFAM Share Holders’ Board, warned SoEs of possible failure if not pushing up reforms in operational procedures, especially managerial mechanism.
Dr. Tran Tien Cuong, Head of the Enterprise Renovation and Development Department under the Central Institute for Economic Management, said one-member limited liability companies. should separate the owners’ rights from the State management function and install owners’ supervision upon the companies’ operations through a special mechanism.
His view was shared by experts with many even emphasising the need to incorporate the supervision over the equitisation of one-member companies Ltd. into the National Assembly’s supervision agenda.
Experts also asked the Government to promulgate legal documents on equitisation and changing ownerships of one-member limited liability companies.
In this regard, the Enterprise Renovation and Development Department said that the Government is due to promulgate a new regulation on implementing the rights and duties of owners of enterprises with State investment.
After 18 years of implementing SoE equitisation, 5,565 SoEs have been either restructured or equitised, of which the latter made up 70.48 percent, according to the Enterprise Financing Department under the Ministry of Finance./.
