Vietnam plans ministry to handle state enterprises

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vinashinThe Vietnam government plans to fight bureaucracy with bureaucracy and considers setting up a specific ministry or at least a committee to “manage” state owned enterprises (SOEs) which have been heavily criticised for the ineffective operation,VietnamNet Bridge reported.

The Ministry of Planning and Investment has suggested to the government two SOE management models which it believes would help improve the enterprises’ business performance.

In the first scenario, a SOE management and supervision committee under the government would be set up. In the second one, a ministry would be established which would act as the representative of the real owner – the state – in economic groups, general corporations or the SOEs for public purposes. In other words, the ministry would take the job which is now the State Capital Investment Corporation’s job.

At present, ministries both act as the state management agencies and the owners of SOEs, which means they are both the “arbitrators” in the playing field and the “players,” the “policy makers” and the “policy followers” at the same time.

The current mechanism leads to the discriminatory treatment among the enterprises. The ministries, as the government bodies, would set up the regulations which benefit the enterprises put under their control.

However, economists say it is necessary to “re-define” the role of SOEs in the national economy. If Vietnam insists that SOEs serve as the backbone of the national economy, then it would need a ministry that is powerful enough to assign tasks to them and give them power to implement the tasks.

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Reading Time: 2 minutes

The Vietnam government plans to fight bureaucracy with bureaucracy and considers setting up a specific ministry or at least a committee to “manage” state owned enterprises (SOEs) which have been heavily criticised for the ineffective operation,VietnamNet Bridge reported.

Reading Time: 2 minutes

vinashinThe Vietnam government plans to fight bureaucracy with bureaucracy and considers setting up a specific ministry or at least a committee to “manage” state owned enterprises (SOEs) which have been heavily criticised for the ineffective operation,VietnamNet Bridge reported.

The Ministry of Planning and Investment has suggested to the government two SOE management models which it believes would help improve the enterprises’ business performance.

In the first scenario, a SOE management and supervision committee under the government would be set up. In the second one, a ministry would be established which would act as the representative of the real owner – the state – in economic groups, general corporations or the SOEs for public purposes. In other words, the ministry would take the job which is now the State Capital Investment Corporation’s job.

At present, ministries both act as the state management agencies and the owners of SOEs, which means they are both the “arbitrators” in the playing field and the “players,” the “policy makers” and the “policy followers” at the same time.

The current mechanism leads to the discriminatory treatment among the enterprises. The ministries, as the government bodies, would set up the regulations which benefit the enterprises put under their control.

However, economists say it is necessary to “re-define” the role of SOEs in the national economy. If Vietnam insists that SOEs serve as the backbone of the national economy, then it would need a ministry that is powerful enough to assign tasks to them and give them power to implement the tasks.

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