On 29th, September 2018, the Government issued Decree No.131/2018/NĐ-CP regulation on functions, objects, authorities and organizational structure of the Commission for the Management of State Capital at enterprises. This Decree comes into force from the issued date.
The Decree No. 131/2018/NĐ-CP contains the following new important contents:
Firstly, The Commission for the Management of State Capital (CMSC) which is a agency of government, performs rights and responsibilities of representation of the State owner toward the business which State hold the capital in it.
Secondly, CMSC has the following objects, rights and responsibilities:
– Contruction and implement the overall strategy for investment enterprises development after being approved by the Government;
– Contruction and implement the longtime, five – years, annual plans of CMSC and related program after being approved by the Government;
– Performing objects and rights of representation of the State owner under the regulation of law: Proposing the issuance, amendment and supplement of the charter of the State – owned enterprise; To advise on decisions on state capital investment for the establishment of enterprises; To assume the prime responsibility for, and coordinate with professional agencies in, decisions on reorganization, ownership transformation, dissolution and bankruptcy of enterprises or development investment strategies and plans as well as production and business plans;
– Performing objects and rights of Government’s agency under regulation of law;
– To be responsible for effective utilizing, preservation and increase total State Capital which is invested into the managed business.
– Publicity and transparency in investment, management and utilizing of state capital at enterprises;
– Reporting and explaining to authorities on investment, management and utilizing state capital at enterprise.
In summary, the management of state capital at enterprises is not concerned a lot in several years before. Therefore, it causes the ineffective utilizing of State Capital leading to the losses and deficit the State budget. Besides, at the same time, there are many corruption cases and abuse of State capital at enterprises in many serious cases such as Vinashin, Ocean bank, PVN … Therefore, the establishment of the Commission for the Management of State Capital with specific duties and responsibilities is new advances in enhancing the efficiency of managing state capital at enterprises.