The collapse of the Vietnam Shipbuilding Industry Group (Vinashin) hasforced the Government to restructure State-run groups and providedvaluable lessons for their extensive development, says an official.
Tran Tien Cuong, director of the Central Institute for EconomicManagement's enterprise renovation and development department, made thestatement at a conference on the State-owned group model during therenewal period in Vietnam , held in Hanoi on Oct.19
The Chairman of the Vietnam National Oil and Gas Group, Dinh La Thang,pointed out some of the shortcomings in the group model, saying that itwas too similar to the former corporation model.
"Alegal framework related to group activities has not been completed andthere are no separate and specific rules between State administrationgovernance and State capital ownership," Thang said.
With experience from the Republic of Korea and China , it wasessential to build and develop the groups more intensively, controlextensive development, avoid inappropriate mergers and acquisitions aswell as avoid multi-sector investment and only focus on investment incore business, Cuong said.
Director of Vinashin'stechnical department Ngo Tung Lam also agreed that one of the solutionsto improve the governance of the groups was to avoid multi-sectorinvestment, especially in risky areas that could cause major losses andstretch unqualified human resources.
It was alsonecessary to build a system to supervise and investigate the groups'assets and State capital as well as the capacity of their leaders, Lamsaid.
Nguyen Dinh Phan, former rector of the HanoiNational Economics University , claimed:"Co-operation betweenaffiliates in each group is still loose and their business effectivenessis low."
Phan advised that more measures wereneeded to legalise group activities, including increased autonomy insubsidiary management and an independent agency to supervise the groups.Since 2006, a dozen groups have been established in various keyeconomic sectors./.
Tran Tien Cuong, director of the Central Institute for EconomicManagement's enterprise renovation and development department, made thestatement at a conference on the State-owned group model during therenewal period in Vietnam , held in Hanoi on Oct.19
The Chairman of the Vietnam National Oil and Gas Group, Dinh La Thang,pointed out some of the shortcomings in the group model, saying that itwas too similar to the former corporation model.
"Alegal framework related to group activities has not been completed andthere are no separate and specific rules between State administrationgovernance and State capital ownership," Thang said.
With experience from the Republic of Korea and China , it wasessential to build and develop the groups more intensively, controlextensive development, avoid inappropriate mergers and acquisitions aswell as avoid multi-sector investment and only focus on investment incore business, Cuong said.
Director of Vinashin'stechnical department Ngo Tung Lam also agreed that one of the solutionsto improve the governance of the groups was to avoid multi-sectorinvestment, especially in risky areas that could cause major losses andstretch unqualified human resources.
It was alsonecessary to build a system to supervise and investigate the groups'assets and State capital as well as the capacity of their leaders, Lamsaid.
Nguyen Dinh Phan, former rector of the HanoiNational Economics University , claimed:"Co-operation betweenaffiliates in each group is still loose and their business effectivenessis low."
Phan advised that more measures wereneeded to legalise group activities, including increased autonomy insubsidiary management and an independent agency to supervise the groups.Since 2006, a dozen groups have been established in various keyeconomic sectors./.
