Oct 31, 2012

Vietnam - Prime Minister is responsible for no more than 10 groups

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VietNamNet Bridge – The Decree on decentralization of management of state-owned enterprises, approved by the Government in the October cabinet meeting, specifies the responsibilities of the Prime Minister and Ministers over state corporations.

According to Minister-Chairman of the Government Office Vu Duc Dam, at a press conference on October 28, with the application of the decree, the PM will not be directly responsible for all 21 state-owned groups and corporations.

"The final list will be voted by cabinet members. However, the number of groups that the Prime Minister is directly responsible for will be definitely less than 10", he said.

For the remaining corporations and groups, the government is expected to delegate management and supervision to Ministers. These corporations and groups will have to restructure: they may retain the group model or become corporations, similar to the cases of the two corporations under the Ministry of Construction that were restructured recently.

"In some corporations and groups, the State may not need to hold up to 50 percent of the capital. But saying so does not mean that after restructuring, they are no longer state-owned enterprises. In addition, the sale of their capital also depends on the market", Mr. Dam said.

For the case of the Vietnam Shipbuilding Industry Group (Vinashin), Mr. Dam said that this group has had a restructuring plan. However, this group’s mistakes have left many serious consequences so the Government had to discuss and consulted the Politburo many times. "The Politburo also requested the government to further study before submitting the specific restructuring plan of Vinashin," said Dam.

Compiled by Na Son

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