Revise Law to promote autonomy, and self-determination of the state-owned enterprises

VCN - One of the issues of concern when the Ministry of Finance consults on the new draft law on management and investment of state capital in enterprises, is to increase autonomy and reduce compliance conditions for state-owned enterprises.
Fast and effective in restructuring state-owned enterprises Fast and effective in restructuring state-owned enterprises
Reviewing policies when state-owned enterprises are not profitable Reviewing policies when state-owned enterprises are not profitable
Revise Law to promote autonomy, and self-determination of the state-owned enterprises
The seminar on the draft Law on Management and Investment of State Capital in Enterprises.

At the seminar on the draft Law on Management and Investment of State Capital in Enterprises to replace the Law on Management and Use of State Capital Investment in Production and Business at Enterprises (Law No. 69/ 2014/QH13) held on August 22, 2024, Mr. Duong Manh Son, Deputy General Director of Vietnam Oil and Gas Group (PVN), said that PVN is a large economic corporation, so the amendment to the Law will certainly have impacts on all operations of the parent company and its member companies.

According to Mr. Son, the completion of regulations on State capital management in enterprises will ensure the effectiveness of state capital management and investment in enterprises, create the most favorable conditions for state-owned enterprises to avoid problems due to administrative procedures.

Furthermore, citing a recent event that the US Department of Commerce has not recognized Vietnam as a country with a market economy, Mr. Duong Manh Son said one of the reasons for not being recognized is the Government's impact on the business activities of state-owned enterprises, with concerns about inequality between state-owned enterprises and other types of businesses.

Mr. Cao Hoai Duong, Chairman of the Board of Directors of Vietnam Oil Corporation (PVOIL) said that state-owned enterprises are heavily imposed many regulations by management agencies. PVOIL currently has more than 80% of PVN's capital as a joint stock company listed on the stock exchange, so it not only must comply with the provisions of Law No. 69 but also must comply with the Enterprise Law and internal regulations company and resolutions of the general meeting of directors.

Duong said that in 2022 there was a crisis in supply and gasoline prices due to market fluctuations after the conflict between Russia and Ukraine, import surcharge prices increased while domestic gasoline prices were not adjusted in time. This situation led to the lack of the supply and gas stations had to close, so the Government directed PVOIL to promote its political mission and open gas stations, leading to a tripling of sales volume, but the more it sold, the more it loss.

Therefore, Duong said that state-owned enterprises are not favored, and even have many losses compared to many private enterprises who have the right to self-determination. When private enterprises see profits, they will sell products, and they will stop when they see the loss, and enjoy more open business regulations.

The leader of PVOIL and PVN said that the draft Law on Management and Investment of State Capital in Enterprises needs to improve and clarify the content, to create equal treatment between the enterprises. Son also said that regulations should aim to assign state-owned enterprises to perform the task of preserving state capital in business operations, but needs to specify the appropriate regulations for enterprises when they face the loss in the current market having fluctuations.

The representative of Vietnam Gas Corporation proposed that the regulations in the draft Law need to ensure consistency with other laws such as the Enterprise Law, Securities Law, Investment Law, and Bidding Law as well as ensure equality with other businesses and promote autonomy and self-responsibility for businesses, thereby improving business efficiency for businesses.

Mr. Tran Thai Bao, Deputy General Director of Binh Son Refining and Petrochemical Joint Stock Company (BSR) also expressed his agreement with goal of the draft Law that the State is the owner of capital investment, but does not interfere the business and management activities of the enterprise, thereby, promoting decentralization of power but must have a strict management mechanism to avoid loss of State assets.

Regarding the distribution of after-tax profits, the BSR representative proposed that the distribution of profits should be decided by the business to comply with the provisions of the Enterprise Law. Meanwhile, Vietnam Gas Corporation proposed to remain the current regulations in Decree No. 53/2016/ND-CP.

Regarding investment decentralization of enterprises at level 2, the draft stipulates that investment activities such as investment approval power, investment policies... must be reported and consulted with the ownership agency, but the BSR representative said that these contents should be assigned to enterprises to decide in accordance with the Enterprise Law, charter and internal management regulations of the enterprises.

Mr. Doan Thanh Tuan, Deputy Director of the Department of Corporate Finance (Ministry of Finance) said that the Ministry of Finance and the drafting committee will complete the draft Law to report the Government and the National Assembly, which will facilitate the business operation of the State-owned enterprises.

By HuongDiu/Ngoc Loan

Related News

Ensuring efficiency and transparency in use and management of houses and land at State enterprises

Ensuring efficiency and transparency in use and management of houses and land at State enterprises

VCN - According to the Ministry of Finance, the issuance of Directive on strengthening management, improving the efficiency of use and handling of houses and land at State-owned enterprises to ensure the effective management, use and handling of houses and land for the right purposes, and to avoid loss and waste.
Amending the Law on Corporate Income Tax, not giving preferential treatment to overlapping and spreading industries

Amending the Law on Corporate Income Tax, not giving preferential treatment to overlapping and spreading industries

VCN - The promulgation of the Law on Corporate Income Tax (amended) is necessary, in line with international practice, associated with restructuring revenue sources, expanding the tax base in line with the context of socio-economic development.
Revising the title of a draft of 1 Law amending seven finance-related laws

Revising the title of a draft of 1 Law amending seven finance-related laws

VCN - On November 19, 2024, the Standing Committee of the National Assembly (SCNA) discussed amendments and refinements to the draft of a law revising seven existing finance-related laws. Concluding the session, Vice Chairman of the National Assembly Nguyen Duc Hai emphasized the need for the Government to direct the drafting body and relevant agencies to collaborate closely to finalize a persuasive and widely supported report, ensuring the quality of the draft law for the National Assembly's consideration and decision.
Strengthening the financial “health” of state-owned enterprises

Strengthening the financial “health” of state-owned enterprises

VCN - The state economy plays a key role in the socio-economic development process, but it is necessary to strengthen the financial health and competitiveness of state-owned enterprises (SOEs).

Latest News

Vietnam

Vietnam's stock market to develop strongly and sustainably

VCN - This was emphasized by Minister of Finance Nguyen Van Thang at the Conference to review the work of 2024 and deploy the work of 2025 of the State Securities Commission (SSC) held on the afternoon of December 18.
Tax sector achieves revenue target of about VND1.7 million billion

Tax sector achieves revenue target of about VND1.7 million billion

VCN – Motivated by the revenue collection by the end of December 2024, the General Department of Taxation has accomplished the revenue collection.
General inventory of public assets raises efficiency of use and management of country

General inventory of public assets raises efficiency of use and management of country's resources

VCN – The implementation of the General Inventory Project by the Ministry of Finance, ministries, central and local agencies has ensured progress according to Project 213 and the plan issued by the Ministry of Finance. This is the information provided by a representative of the Department of Public Asset Management (Ministry of Finance) at the press conference on the implementation of the General Inventory Project of public assets organized by the Ministry of Finance on the afternoon of December 18.
Publicizes progress of public investment disbursement for important national projects

Publicizes progress of public investment disbursement for important national projects

VCN – Important national projects, inter-regional transport projects, riverbank and coastal erosion treatment projects all have disbursement rates lower than the estimated average disbursement rate of the whole country, the Ministry of Finance said.

More News

Six SOEs to be transferred back to industry ministry

Six SOEs to be transferred back to industry ministry

Six State–owned enterprises (SOEs) with a total State stake of 800 trillion VND (31.5 billion USD) will be transferred back to the Ministry of Industry and Trade (MoIT) after six years under the management of the Commission for the Management of State Capital at Enterprises (CMSC).
PM urges stronger measures to manage interest rates

PM urges stronger measures to manage interest rates

Prime Minister Pham Minh Chinh has asked the State Bank of Vietnam (SBV) to proactively, flexibly, promptly, and effectively manage the monetary policy in combination with the expansionary fiscal policy and others.
Six SOEs to be transferred back to industry ministry

Six SOEs to be transferred back to industry ministry

Six State–owned enterprises (SOEs) with a total State stake of 800 trillion VND (31.5 billion USD) will be transferred back to the Ministry of Industry and Trade (MoIT) after six years under the management of the Commission for the Management of State Capital at Enterprises (CMSC).
Vietnamese products: Conquering foreign customers in supermarket systems

Vietnamese products: Conquering foreign customers in supermarket systems

VCN - According to the Ministry of Industry and Trade, the proportion of Vietnamese goods in distribution channels currently reaches more than 80% in supermarkets and 60% or more in traditional retail channels. For many retailers, Vietnamese goods have become a growth driver as they not only do business successfully in the domestic market but also export.
Answering many questions from businesses at dialogue conference on tax and customs policies

Answering many questions from businesses at dialogue conference on tax and customs policies

VCN - Many opinions and recommendations related to tax and customs issues were raised by the business community at the dialogue on tax and customs policies and administrative procedures in 2024, organized by the Ministry of Finance.Representatives of the Ministry of Finance, the General Department of Taxation, and the General Department of Customs provided specific responses, and affirmed that they will continue to research and advise on the assessment, review, and amendment and supplementation of appropriate regulations.
Enterprises face difficulties in tax refunds due to partners closing

Enterprises face difficulties in tax refunds due to partners closing

VCN - On December 13, at a dialogue conference on tax and customs policies and administrative procedures organized by the Ministry of Finance in coordination with the Vietnam Chamber of Commerce and Industry (VCCI), enterprises proposed solutions to many problems related to tax policies such as VAT refunds, tax declaration procedures, electronic invoices, etc.
Strengthen the management and use of electronic invoices for e-commerce

Strengthen the management and use of electronic invoices for e-commerce

VCN - Prime Minister Pham Minh Chinh requested ministries, branches and localities to strengthen the management and use of electronic invoices and improve the efficiency of tax collection for e-commerce.
Ministry of Finance proposes comprehensive amendments to the Personal Income Tax Law

Ministry of Finance proposes comprehensive amendments to the Personal Income Tax Law

VCN - The Ministry of Finance has just completed the proposal to draft the Personal Income Tax Law (PIT) and officially solicited public comments. By amending and supplementing nearly 90% of the total number of articles of the current PIT Law, the Ministry of Finance has submitted to the Government for permission to propose the draft PIT Law to replace the PIT policy system. The project is expected to be approved by the National Assembly in May 2026.
Expansionary fiscal policy halts decline, boosts aggregate demand

Expansionary fiscal policy halts decline, boosts aggregate demand

VCN - Customs News interviews Ms. Nguyen Thanh Nga, Deputy Director of the Institute for Financial Strategy and Policy (Ministry of Finance).
Read More

Your care

Latest Most read
Ensuring efficiency and transparency in use and management of houses and land at State enterprises

Ensuring efficiency and transparency in use and management of houses and land at State enterprises

VCN - According to the Ministry of Finance, the issuance of Directive on strengthening management, improving the efficiency of use and handling of houses and land at State-owned enterprises to ensure the effective management, use and handling of houses an
Vietnam

Vietnam's stock market to develop strongly and sustainably

VCN - This was emphasized by Minister of Finance Nguyen Van Thang at the Conference to review the work of 2024 and deploy the work of 2025 of the State Securities Commission (SSC) held on the afternoon of December 18.
Tax sector achieves revenue target of about VND1.7 million billion

Tax sector achieves revenue target of about VND1.7 million billion

VCN - With the determination to accomplish the revenue collection to create resources for economic development under the Prime Minister's direction, the entire Tax sector has made efforts to perform the revenue collection in the last days of 2024.
General inventory of public assets raises efficiency of use and management of country

General inventory of public assets raises efficiency of use and management of country's resources

VCN – The implementation of the General Inventory Project by the Ministry of Finance, ministries, central and local agencies has ensured progress according to Project 213 and the plan issued by the Ministry of Finance. This is the information provided by
Publicizes progress of public investment disbursement for important national projects

Publicizes progress of public investment disbursement for important national projects

VCN - The Ministry of Finance has issued Document No. 13213/BTC-DT to publicize the progress of public investment disbursement of key national projects.
Mobile Version