Building a breakthrough mechanism for State capital flow in enterprises

The Ministry of Finance has organized a conference of the drafting committee to give opinions on the draft Law on Management and Investment of State Capital in Enterprises, to replace Law No. 69 of 2014. It is expected that this will be a Law with a breakthrough approach, creating a clear corridor for enterprises to optimize the flow of State capital.

The draft Law clearly defines the State as the owner of capital investment and does not interfere administratively in the production and business management activities of enterprises. Promote decentralization, delegation of authority, and self-responsibility for individuals representing capital.

Mr. Nguyen Van Mau - Member of the Board of Directors of Vietnam Oil and Gas Group said: "Separate the functions, the ownership function and the management function of the State. State capital after investing in an enterprise is considered as the legal capital asset of the enterprise. I think this is a very new viewpoint, in accordance with international practices and international views on governance".

Mr. Dau Anh Tuan - Deputy General Secretary of the Vietnam Federation of Commerce and Industry commented: "Previously, Law 69 called it capital use, but this is capital investment. That means the proactive role of the State here as an investor. You can continue to invest if that field brings strategic benefits that the State is aiming for, such as national security and defense, and other values".

However, besides opinions appreciating the approach of the draft Law, there are still concerns about the new management mechanisms.

Mr. Nguyen Xuan Nam - Deputy General Director of Vietnam Electricity Group commented: "It takes at least three months through the Ministry of Finance, through the Committee, and to the Government as well. In short, every step adds one year, delays the project by one year. That is the reality. We should consider more about approving the capital investment policy."

Ms. Bui Thu Thuy - Deputy Director of the Department of Enterprise Development, Ministry of Planning and Investment commented: "The Enterprise Law stipulates that one must hold 65% of capital to have the right to decide on economic sectors, but in this law, it is currently set at over 51%, which is in conflict with the Enterprise Law."

With a drafting committee of up to 47 members, including representatives of ministries, businesses and experts, many opinions from the Government and the National Assembly assess this as a difficult Law project, requiring close participation of each member of the drafting committee. It is expected that in the next few days, the draft Law will be widely publicized by the Ministry of Finance to receive comments for completion, before submitting it to the National Assembly for consideration at the October session.

According to VTV

Source: https://doanhnghiepvn.vn/doanh-nhan/xay-dung-co-che-dot-pha-cho-dong-von-nha-nuoc-tai-doanh-nghiep/20240621014315538