Post-transfer business to the "super Commission": Expectations and challenges

	Improve business environment: Not even among localities
	Revised Law on securities: should facilitate small enterprises
	The most important measure is the satisfaction of the enterprises

Ninh Binh Fertilizer Plant - one of the 12 losses of the former Ministry of Industry and Trade that has revived after receiving the "super commission"?

Continuing to coordinate with ministries to restructure the business

From November 10 to 15, 2018, 19 large corporations of the State, respectively, have been transferred to the Commission for the management of State Capital at Enterprises by the ministries. This is considered an important step in the process of operation of this agency, because there have been many concerns about the ministries for many objective and subjective reasons that try to delay this transfer. As of November 15, nearly one trillion dong of state capital in 19 SOEs was handed over to the CMSC. This implies that large amounts of state capital in 19 SOEs were officially managed by one focal point. Particularly, the state-owned capital of 6 corporations under the Ministry of Industry and Trade is 555 trillion dong; State-owned capital in the five corporations of the Ministry of Transport are 46 trillion dong, state-owned capital in Vinaphone and Mobiphone corporations are 87 trillion dong.

Thus, after November 15, the management and supervision of state capital in 19 companies is entirely under the responsibility of the "super Commission". Accordingly, being handed over to a more specialized and professional agency will help businesses operate more efficiently, state capital in enterprises is not only preserved, but also must be used effectively. However, this does not mean that ministries and agencies are completely irresponsible.

According to Deputy Prime Minister Vuong Dinh Hue, after this transfer, the ministries continue to perform the functions of state management for enterprises. Specifically, it includes: Building the legal system and legal documents on the operation of SOEs; Building and planning of development strategies in the sector of their management; Establishing norms and standards related to production and business of enterprises; building the database system related to state management; Inspecting the legal compliance of enterprises. Thus, when the function of representatives of state capital owners is handed over to the CMSC, the ministries and departments will focus on the state management and development of enterprises through advantageous policies, to ensure that there is no overlapping in the management of enterprises, which will contribute to increase the efficiency of production and business activities of enterprises.

At the Conference on changes and enhancement for the effectiveness of SOEs' operations, focusing on economic groups and state-owned corporations, Deputy Prime Minister Vuong Dinh Hue stressed that the handover ceremony of 19 corporations to the CMSC was completed, but the most important issue is clearly defined rights and responsibilities and close coordination between the Commission and the ministries. Deputy Prime Minister noted that: It is necessary to ensure the normal and continuous development of business, minimize disturbance in terms of psychology, ideology and organization in the enterprise and do not create additional and middle administrative steps... the ultimate goal focuses on innovation, improving the performance of SOEs.

The challenges

Many opinions suggest that besides the advantages, the improvement of the efficiency of the use of state capital also faces many challenges, such as creating a streamlined, efficient framework that can manage enterprises with advanced standards, comprehensive restructuring of SOEs in accordance with market principles ...

Mr Hoang Truong Giang, Deputy Director General of the General Economics Department, Central Economic Committee said that "the commission faces many difficulties and challenges for the right implementation on the ownership of state capital in enterprises, such as the requirement of strengthening the contingent of staff with practical experience, ethical qualities that are capable to immediately implement the responsibilities of the representative agency of the State. In addition, the receipt of 9/12 project losses in the Industrial and Commercial sector must be finalized before 2020. Besides, 4/19 corporations made losses, which in accordance with the objectives of Resolution 12/2017/NQ-CP on further restructuring, renewal and improvement of SOEs' efficiency, must be dealt with before 2020.

Regarding to the human resources of the Committee, economist Can Van Luc stressed: "The Commission's operation have to follow the market mechanism, oriented to enterprises and closer to enterprises, so in the key leadership of the Commission it should have representatives of enterprises, or those who have gone through the process as business leaders that have transferred an industry, but they have the capacity and are full of enthusiasm, responsibility ... ".

The expectation of the CMSC’s forthcoming movement is huge. The effect of these 19 companies after being merged into "super committee" will clearly affect certain economic growth. However, that means the responsibility of the "super committee" after the transfer is very heavy.

In the next two years, the CMSC will have to direct the implementation of business plans in 2019 of enterprises. In addition, the CMSC will research and cooperate with enterprises to propose to the National Assembly, the Government to complete the legal system on management of state capital. Then, the CMSC will have to develop plans and strategies for each enterprise in accordance with the sector strategies, market demand, promoting equitization, divestment of state capital in enterprises.

Regarding this issue, at the ceremony of transferring enterprises, representatives of the CMSC also stressed that after the transfer, enterprises will work closely with the ministries to concentrate production and business as well as seriously implement the restructuring, renovation and restructuring of enterprises. The CMSC will carry out all regulatory tasks and the Government's guidelines to help businesses with more favorable conditions that connect business with ministries, industry and government to operate more efficiently. One of the key tasks of the CMSC in the coming time is to further accelerate the renewal, reorganization and restructuring of member enterprises through equitization and divestment in these enterprises according to the plan already approved by the Prime Minister.

According to Mr Nguyen Hoang Anh, the president of CMSC, the Committee has grasped the situation of businesses and found that the prospect of completing the 2018 plan is quite good. Of which, some companies are expected to reach or exceed the plan, such as the State Capital Investment Corporation (SCIC) expects sales to exceed 25%, sales of the Northern Food Corporation is expected to exceed 10-20% and profit is expected to exceed 35-40%, profit of Vietnam Airlines Corporation expected to exceed 37%, profit of VNPT is expected to exceed 25%, and TKV is about 15%.

The most important measure is the satisfaction of the enterprises VCN - On November 20, the Vietnam Chamber of Commerce and Industry (VCCI) held a seminar on the ...

Mr. Nguyen Hoang Anh emphasized that enterprises operating in the market mechanism must be responsible for the performance of their own businesses. Accordingly, the representatives of owners, ministries, directives must also follow the market mechanism, accept the fluctuations, ups and downs of the market, accept the adjustment to flexibly adapt to the operation of enterprises. Companies that do not adapt are required to restructure, rearrange, change managers at the right time for those that are suitably capable.

Regarding to the restructuring of SOEs, Minister of Ministry of Planning and Investment Nguyen Chi Dung, said that since the CMSC was put into operation, the transfer of 19 corporations with many branches has been completed. So the restructuring of SOEs can not be applied only to individual enterprises, the CMSC must have a sectoral or product chain approach to take advantage of the strengths of corporations. The CMSC must research and have strategic proposals to make real changes in the way of operation and improve enterprises’ efficiency.