Transform most state-owned enterprises, fight against 'group interests' and 'backyards'

The General Secretary requested to accelerate the transformation of most SOEs into enterprises with mixed ownership structures; at the same time, resolutely fight and take measures to prevent and overcome the situation where leaders and managers of SOEs collude with State officials and civil servants and the private economic sector to form "interest groups" and "backyards"...

» Developing the private economy into an important driving force

General Secretary Nguyen Phu Trong speaks at the closing session of the 5th Central Conference. Photo: VGP/Nhat Bac

Speaking at the closing ceremony of the 5th Central Conference on continuing to restructure, innovate and improve the efficiency of State-owned enterprises (SOEs), General Secretary Nguyen Phu Trong said that the Conference unanimously agreed that, although there are still many limitations and weaknesses that need to be overcome, overall, SOEs, including 100% State-owned enterprises and enterprises in which the State holds controlling shares and capital contributions, have strived to improve in production and business, constantly innovated and achieved many results.

Along with the State's mechanisms and policies, SOEs are an important tool to ensure effective implementation of macroeconomic stability policies, cope with market fluctuations, and curb inflation; make great contributions to the construction and development of the socio-economic infrastructure system, and economic restructuring; are a major source of revenue for the State budget; and make important contributions to the implementation of national defense and security tasks and the implementation of social security policies.

In the coming time, it is necessary to continue to pay attention to leading and directing the restructuring, innovation and improvement of the efficiency of SOEs so that SOEs can truly promote their key role and position in the State economic sector, as an important material force of the State economy, contributing to promoting economic development and realizing social progress and equity. Seriously implement new, breakthrough policies and measures that have just been unanimously approved by the Central Committee.

Specifically, promote the conversion of most SOEs into enterprises with mixed ownership structures, mainly joint-stock enterprises, listed on the stock market, taking economic efficiency as the main evaluation criterion. Implement publicly, transparently, according to market mechanisms, mainly through the stock market, divestment from enterprises in which the State does not need to hold 100% of capital or the State does not need to participate in investment to concentrate capital for investment in developing other important projects and works in key, essential fields, important areas and national defense, security, fields in which enterprises of other economic sectors do not invest.

Focus on thoroughly handling ineffective corporations, general companies, enterprises, projects and investment works with prolonged losses, including by means of dissolution and bankruptcy.

Restructuring and innovating state-owned enterprises to meet international standards on corporate governance; truly operating under market mechanisms, autonomy, self-responsibility, and equal competition with enterprises of other economic sectors according to the provisions of law; ensuring publicity, transparency and accountability...

For state-owned enterprises that are assigned to manage and exploit infrastructure works and projects invested by the State and have important economic, social, defense and security significance, when equitized, the State will control according to the principle that "the State unifies ownership of important infrastructure works; equitized enterprises and investors receiving exploitation rights are only entitled to manage, operate and exploit infrastructure works and projects"...

Continue to innovate, improve the effectiveness and efficiency of management, supervision, inspection and control of the operations of State-owned enterprises; prevent loss and waste of State capital and assets. Separate and clearly define the State management function for all types of enterprises in general with the ownership function for State-owned enterprises and State shares and capital contributions in enterprises as well as with the business administration function of State-owned enterprises in particular.

Urgently complete the model for management and supervision of enterprises and State capital and assets invested in enterprises; by 2018 at the latest, establish a specialized agency to represent the ownership of State-owned enterprises and the State's shares and capital contributions in enterprises.

Delegates attending the 5th Central Conference. Photo: VGP/Nhat Bac

General Secretary Nguyen Phu Trong also emphasized the need to resolutely fight and take measures to prevent and overcome the situation where leaders and managers of State-owned enterprises collude with State officials and civil servants and the private economic sector to form "interest groups" and "backyards" to manipulate the operations of State-owned enterprises, gain personal benefits, engage in corruption and waste, causing harm to the State and enterprises.

Clearly define the functions, tasks, powers and responsibilities of the collective and individual chairman, members of the board of directors, board of members, representative of State capital, and executive board in the enterprise management and administration system.

The head of a state-owned enterprise is directly responsible before the law and the State for all activities of the enterprise.

The Board of Supervisors and Supervisors must truly be effective monitoring tools of the owner, operate independently and not be subject to any unreasonable influence on the interests of the Board of Members, Board of Directors and Executive Board of the enterprise. The General Director and members of the Executive Board of the State-owned enterprise are appointed by the Board of Members and Board of Directors and perform their duties and powers in accordance with the provisions of law and the labor contract.

The General Secretary also noted the need to perfect incentive systems and economic leverage along with enhancing responsibility, discipline, and order for leaders, managers, and workers in state-owned enterprises; widely implementing recruitment and appointment mechanisms through competitive, public, and transparent examinations for all management and executive positions and other job positions in state-owned enterprises...

According to Nguyen Hoang/chinhphu.vn