The "super committee" managing 5 quadrillion VND will operate from October 2018

At the meeting to receive recommendations from the National Assembly Standing Committee (NASC) on the establishment of the State Capital Management Committee, Deputy Minister of Planning and Investment Vu Dai Thang said that the NASC had met and commented on the draft Decree regulating the functions, tasks, powers and organizational structure of the State Capital Management Committee at enterprises.

Deputy Prime Minister Vuong Dinh Hue, Head of the Prime Minister's Working Group on the establishment of the State Capital Management Committee, chaired a meeting to receive recommendations from the National Assembly Standing Committee on the establishment of the Committee.

Specifically, the Standing Committee of the National Assembly believes that, firstly, the draft Decree should clarify the separation of the State management function, the enterprise management function, and the State capital ownership function. There should be appropriate salary mechanisms and policies for the leaders of the Committee and leaders of units to attract capable staff, creating motivation for the apparatus to effectively perform its functions and tasks.

Second, the Standing Committee of the National Assembly also proposed clarifying the regulation that the Committee does not directly intervene in the production and business activities of enterprises and ensures efficiency, increases the total value of State capital invested in enterprises,...

Accepting the opinion of the Standing Committee of the National Assembly, the Ministry of Planning and Investment said that the draft Decree clearly stipulates the principle that the Committee only exercises the rights and responsibilities of the State ownership representative agency, and does not perform the tasks and powers under the State management function for enterprises performed by the sector-managing ministries.

Experts also assessed that this is a big step forward in the goal of separating the function of representing state capital ownership from the function of state management from state administrative management agencies. Because over the years, the model of the governing body in state enterprise management has revealed many limitations.

In addition to the salary and allowance regime, the draft also ensures a balanced apparatus between capital management advisory units (vertically) and strategic advisory units (horizontally).

Specifically, there are 9 departments and centers: Department of Agriculture, Department of Industry, Department of Energy, Department of Technology and Infrastructure, Department of General Affairs, Department of Legal Affairs - Internal Control, Department of Organization and Personnel, Office, Information Center, in which the Information Center is a public service unit.

"Super committee" manages assets worth millions of billions of dong.

In the list of 19 enterprises directly represented by the Committee as owners, there is the State Capital Investment Corporation (SCIC), which is the unit performing the function of investing and trading capital in enterprises received from ministries and localities according to the provisions of law, not belonging to the remaining 18 enterprises.

Deputy Minister Vu Dai Thang and leaders of ministries and branches attending the meeting said that this regulation and the regulations on the functions and tasks of SCIC do not overlap or duplicate with the functions and tasks of the Committee.

Chairman of the State Capital Management Committee at Enterprises Nguyen Hoang Anh added that since the establishment of the Committee, the leaders and seconded officials have drafted 44 internal and inter-sectoral operating regulations. “Some regulations are still seeking opinions from ministries and branches, but basically we have completed them and are ready to operate the Committee when the Decree takes effect,” said Mr. Hoang Anh.

At the meeting, the Deputy Prime Minister requested the Ministry of Planning and Investment to collect opinions from ministries and branches, report to the Prime Minister to send a document asking for opinions from Government members, then synthesize and supplement to submit to the Prime Minister to sign and issue the Decree this September.

“Relevant ministries and sectors should make full use of current legal regulations to create conditions for the Committee to start operating in October,” said Deputy Prime Minister Vuong Dinh Hue.

The Deputy Prime Minister also requested the Ministry of Finance to plan a separate budget for 2019 for the Commission's operations.

Thus, with the official operation of the State Capital Management Committee next October, for the first time, Vietnam has a specialized agency performing the function of representing state ownership with state corporations and groups, in accordance with international practices on corporate governance. Separating the function of representing state capital ownership from the state management function from state administrative management agencies, contributes to creating an equal business environment for enterprises and creates conditions for ministries and provincial People's Committees to focus their capacity on performing well the task of state management.

This is also the modern trend of state capital management that many economies in the world have been applying.