A sitting of the National Assembly's 5th session (Photo: VNA)

Hanoi (VNA) – The 14th National Assembly adopted at its 5th session a resolution on continuing to improve and enforce policies and laws on the management and use of State capital and assets in enterprises and during the equitisation of State-owned enterprises (SOEs).

The resolution underlined that SOEs have been restructured towards focusing on key industries and sectors of the economy, or on fields in which other economic sectors do not operate. SOEs continue to play an important role in the country’s socio-economic development, helping ensure the socialist direction of the economy. The production and business of State-invested enterprises continue to maintain stable growth. The divestment of State capital has generally kept up with schedule.

The resolution also acknowledged positive outcomes in the equitisation of SOEs. After equitisation, most enterprises operate in a more transparent manner with bigger scale, better production and business outcomes, and higher contribution to the State budget and workers’ income.

However, problems remain such as law violations in business activities, corporate governance, financial management and infringement of market principles. The resolution also pointed out that a number of large-scale investment projects were delayed, causing losses. The State-invested enterprises are slow in reforming governance model, and fail to attract strategic investors.

To address those problems and better implement policies and laws on the management and use of State capital and assets in enterprises and during equitisation of SOEs, the NA assigned the Government to perform a number of key tasks and solutions.

By 2020, the Government must complete the settlement of enterprises that violated the law or caused losses of State capital and assets; delayed or loss-making investment projects, the resolution said, stressing that the State budget should not be used to cover enterprises’ losses.

The Government is required to keep tight management and supervision of SOEs’ mobilisation and use of capital, especially foreign loans, investment projects, and capital for business purchase, sale and merger. The Government should limit to the minimum its guarantee for enterprises.

The NA resolution urged continued reform of mechanisms to afford SOEs real right in paying salary and bonus to workers based on productivity and business and production efficiency.

The Government is also tasked with reviewing and assessing the implementation of the goal on SOEs equitisation and State capital divestment, and working towards completing the goals in accordance with set roadmaps and legal regulations while ensuring market principles and mechanism.-VNA