Nghe An: Public service enterprises are not attractive to investors

During the 2011-2016 period, the Department of Finance advised the Provincial People's Committee to equitize 6 state-owned enterprises, of which 2 enterprises sold all state capital in accordance with the equitization method; the remaining 4 enterprises did not sell all state capital as per the equitization plan.

The reason is that these are public utility enterprises operating in large areas, with degraded facilities and equipment, outdated technology, low production and business efficiency, so their attractiveness to investors is not high.

Working session scene. Photo: Thanh Le

According to Mr. Nguyen Ngoc Duc - Deputy Director of the Department of Finance, every year the Department of Finance has coordinated with relevant agencies to advise the Provincial People's Committee to deploy and organize the implementation of legal policies on management and use of state capital and assets at enterprises in accordance with the regulations of the Central Government and the province.

However, Mr. Duc said that the state needs to research and promulgate a complete mechanism for managing and supervising state owners and state owner representatives in enterprises.

Mr. Tran Minh Suu - representative of State Audit Office Region II said that after equitization, the issue of state capital management in enterprises is extremely important, especially receivables. Enterprises must be proactive in debt settlement and debt classification.

"In the province, public service enterprises mainly operate according to state-regulated service prices, enterprise capital depends on the budget, and products are not competitive. Therefore, the Department of Finance is responsible for advising the Provincial People's Committee on state capital management, especially advance capital as well as the ability to recover" - Mr. Suu suggested.

Mr. Nguyen Ngoc Duc - Deputy Director of the Department of Finance reported on the results of implementing policies and laws on state capital asset management. Photo: Thanh Le

Deputy Director of the Department of Finance Nguyen Ngoc Duc added: According to the equitization process, in determining asset value, enterprises hire consulting units.

This is an independent valuation agency, collecting fees and responsible for valuation. The entire process and plans for equitization of enterprises in Nghe An ensure state procedures.

Concluding the meeting, Mr. Nguyen Thanh Hien - Deputy Head of the Provincial National Assembly Delegation assessed that, with the assigned responsibility, the Department of Finance has advised the Provincial People's Committee to issue basic guidelines on implementation procedures in accordance with the regulations of the Central Government and the province.

Regarding the recommendations of the Department of Finance on the existing problems, shortcomings and difficulties, the National Assembly delegation received and made recommendations to the Provincial People's Committee, the National Assembly, the Government and relevant ministries and branches.