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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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. 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 –...

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.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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