Enhance autonomy and self-responsibility for state-owned enterprises

Kinhtedothi – According to Deputy Prime Minister Le Thanh Long, the Draft Law on Management and Investment of State Capital in Enterprises aims to ensure that state-owned enterprises operate according to market mechanisms, respect and enhance the autonomy and self-responsibility of state-owned enterprises...

On November 23, continuing the 8th Session, the National Assembly listened to the Government and the appraisal agency report on the Draft Law on Management and Investment of State Capital in Enterprises.

Ensuring that state-owned enterprises operate according to market mechanisms

Emphasizing the need to promulgate the Draft Law on Management and Investment of State Capital in Enterprises, Deputy Prime Minister Le Thanh Long said: Implementing the Party's guidelines and policies and the State's policies on improving the efficiency of management and use of state capital invested in production and business at enterprises, in response to new requirements from management practices and international integration, promptly overcoming the limitations and shortcomings of the current Law on Management and Use of State Capital Invested in Production and Business at Enterprises in Law No. 69/2014/QH13, ensuring the consistency and unity of the Vietnamese legal system, the Government's submission of the Draft Law on Management and Investment of State Capital in Enterprises to replace Law No. 69/2014/QH13 is necessary.

Deputy Prime Minister Le Thanh Long reports on the Draft Law on Management and Investment of State Capital in Enterprises. Photo: Quochoi.vn

The scope of regulation of Law No. 69/2014/QH13 with the content of "use of state capital", "investment in production and business" shows the detail, narrowness in approach, limiting the autonomy of enterprises in using capital and assets in production and business activities; also shows the administrative intervention of the state in the activities of enterprises; does not cover the management of state capital invested in enterprises; at the same time does not include the content of arranging and restructuring state capital in enterprises. Therefore, it is necessary to adjust the scope in the direction of not specifically regulating the content of "use of capital and assets in enterprises".

Accordingly, the use of capital and assets is regulated in the direction of "State capital investment in enterprises"; regulations on capital mobilization; purchase, sale, use of fixed assets; management of receivables and payables are assigned to enterprises to decide in order to clearly identify the State as the owner of capital investment, management according to capital contribution in enterprises, not administrative intervention in enterprise operations; strong decentralization is strengthened in association with enterprise accountability.

Regarding the subject of application when developing the policy, it has been determined that "Enterprises with other state capital investment" are enterprises with capital investment of more than 50% of the charter capital of enterprises with 100% direct state capital investment. During the specific research process when developing the draft Law, to ensure consistency with the principle of state management according to investment capital flow and according to the capital contribution in the enterprise, on the basis of the proposed opinions of enterprises, relevant ministries, branches and units, the Government agreed that the draft Law does not include enterprises with other state capital investment in the scope of the Law and assigns responsibility to enterprises with state capital investment.

8th session, 15th National Assembly. Photo: Quochoi.vn

Accordingly, in Article 2 of the draft, the subjects of application include: (1) State-owned enterprises as prescribed by the Law on Enterprises, credit institutions in which the State holds more than 50% of charter capital (excluding: Deposit insurance and policy banks); (2) Capital owner representative agencies, capital owner representatives at state-owned enterprises as prescribed by the Law on Enterprises and credit institutions in which the State holds more than 50% of charter capital; (3) Relevant agencies, organizations and individuals.

Arrange and restructure State investment capital in enterprises

In his review report, Chairman of the Finance and Budget Committee Le Quang Manh said that the Finance and Budget Committee basically agreed with the Government's Proposal on the necessity of promulgating the Law on Management and Investment of State Capital in Enterprises to replace the Law on Management and Use of State Capital Invested in Production and Business at Enterprises (Law No. 69). The Finance and Budget Committee recognized that the provisions of the Draft Law will contribute to institutionalizing the Party's viewpoints and policies on continuing to restructure, innovate and improve the efficiency of state-owned enterprises (SOEs); ensuring that SOEs operate according to market mechanisms, respecting and enhancing the autonomy and self-responsibility of enterprises; and strengthening State inspection and supervision in the management and investment of capital in enterprises.

To complete the Draft Law, the Finance and Budget Committee recommends that the Drafting Agency continue to review specific provisions in the Draft Law to fully and synchronously institutionalize the above-mentioned policies and principles.

Chairman of the Finance and Budget Committee Le Quang Manh reports on the audit. Photo: Quochoi.vn

Regarding the scope of regulation and subjects of application (Article 1, Article 2), according to the Finance and Budget Committee, the scope of regulation and subjects of application stipulated in the Draft Law have ensured consistency and consistency with the provisions on State-owned enterprises of the Enterprise Law. However, in addition to enterprises with more than 50% state capital, there are currently other types of enterprises with state capital investment that are not yet regulated in the scope of regulation of the Draft Law. Therefore, it is necessary to consider and supplement the scope of management and investment of state capital to have principled regulations in the Draft Law and at the same time, assign the Government to specify details for these enterprises with state capital investment with appropriate measures and levels of management.

Regarding the tasks and powers of the Government, Ministries, ministerial-level agencies, provincial People's Committees and agencies representing state capital owners (Articles 9 and 10), the Finance and Budget Committee finds that the Draft Law has detailed regulations on the tasks and powers of the Government, Ministries, ministerial-level agencies, provincial People's Committees and agencies representing state capital owners. The Finance and Budget Committee recommends that the Drafting Agency continue to research, review and stipulate regulations to ensure compliance with the Law on Organization of the Government, the Law on Organization of Local Governments, the Law on Promulgation of Legal Documents and related legal provisions; ensure consistency in the Law on the rights and responsibilities of the Prime Minister; the rights and responsibilities of the Ministry of Finance as the agency assisting the Government in state management of management and investment of state capital in enterprises.

Regarding the duties, powers and responsibilities of enterprises (Article 12): The Finance and Budget Committee finds that the provisions on the duties and powers of enterprises in the Draft Law do not cover all types of enterprises. Therefore, it is recommended that the Drafting Agency should supplement regulations clearly defining the duties and powers by group, scale and type of enterprise, noting that there are separate provisions for some specific types of enterprises such as public service enterprises, defense and security enterprises, etc.

National Assembly deputies attending the 8th Session of the 15th National Assembly. Photo: Quochoi.vn

At the same time, it is recommended to review and complete Article 12 to clearly define the tasks and powers of enterprises; ensure the spirit of Resolution No. 12-NQ/TW, the Conclusion of the National Assembly Standing Committee, consistency between the viewpoint of law-making and the specific contents stipulated in the draft law; clarify the principle of enhancing the autonomy and self-responsibility of enterprises; in accordance with the provisions of relevant laws.

Regarding state capital investment in enterprises (Chapter III), the content of state capital investment in enterprises stipulated in the draft Law mainly sets out principles for determining the source, scope, conditions, and forms of state capital investment in enterprises. The Finance and Budget Committee recommends that the Drafting Agency continue to review and ensure compliance with the spirit of Resolution No. 12-NQ/TW. Accordingly, only focus on capital investment in a number of state-owned enterprises operating in key, essential fields or fields in which other enterprises do not invest.

Regarding the arrangement and restructuring of state investment capital in enterprises (Chapter V), the Finance and Budget Committee basically agrees with the principles of arrangement and restructuring of state investment capital in enterprises stated in the Draft Law. However, it is recommended that the Drafting Agency review and supplement a number of principles to ensure the spirit of Resolution No. 12-NQ/TW, such as: applying advanced asset valuation methods in accordance with the market mechanism; ensuring that state capital, assets and enterprise value are fully, reasonably, publicly and transparently valued; supplementing regulations on handling cases of undervaluation of assets and enterprise value, causing loss of state capital, and regulating the responsibilities of independent valuation consulting organizations in asset and capital valuation and determining enterprise value.

Source: https://kinhtedothi.vn/nang-cao-quyen-tu-chu-tu-chiu-reach-nhiem-cho-doanh-nghiep-nha-nuoc.html