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Corporatise all public service units: officials

Update: December, 12/2014 - 08:34

HA NOI (VNS) — The plan to convert non-business units of State-owned corporations into joint-stock companies should be expanded to cover those under ministries and provincial administrations, officials said yesterday.

Representatives of many ministries and sectors made this suggestion at a conference held to discuss a draft Governmental Decision on the conversion process.

At present, the plan is to pilot the conversion at

State-owned companies that are to be equitised, but delegates at yesterday's conference said that it should also include non-business units under ministries, People's Committees of cities and provinces nationwide.

They said that over many years of equitising State-owned corporations, many public non-business units, especially in the healthcare, education and training sectors, had been given autonomy and responsibility for performing their tasks and managing their organisational apparatus, payrolls and finances.

This has had a positive impact by improving the quality of public services, they added.

According to the Ministry of Finance, the main drafter of the Government Decision, the conversion aims to reform the work of public non-business units and enhance their capacity to provide high-quality services to society as a whole, contributing to national socio-economic development.

The ministry said that the conversion can be done in three ways: keeping unchanged the existing State investment capital in the enterprises and issuing shares to attract more capital where needed; selling part of the State's stake or doing it in combination with issuing shares; and selling the entire stake of the State in the enterprises or doing it in tandem with issuing shares.

Under the draft decision, after becoming joint-stock companies, the units will operate under the Law on Enterprises and other relevant regulations.

They will continue providing public services but can decide on the prices of the services based on a reasonable calculation of their expenses.

The decision also says that employees of the non-business units who are experts will be given priority in buying shares in the new joint-stock company.

Deputy Prime Minister Vu Van Ninh agreed with the proposal to expand the process, but added that units under State-owned corporations might enjoy some preferential policies.

Ninh, who is also the head of the Steering Committee for Enterprises Innovation and Development, said that in terms of financial management, units like hospitals, schools and research institutes should be allowed to self-evaluate their human resources and the State would cover the expenses of this process as well as subsequent training provided.

He explained the purchasing priority given to expert employees by saying the success of the new companies depends on both financial and "grey matter capital.

Ninh also said that based on the characteristics and functions of the units, the State would have some involvement in the conversion process when national defence and security issues come into play.

The Finance Ministry should draw up a list of those non-business units that require such involvement, he said. — VNS

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