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19 State-owned groups to undergo financial supervision

Update: June, 20/2019 - 11:35

 

Customers at a Mobifone store in Hà Nội. Mobifone is one of 19 firms under the Commission for the Management of State Capital at Enterprises (CMSC)'s supersivion. — VNS Photo Đoàn Tùng

HÀ NỘI — The Committee for Management of State Capital at Enterprises (CMSC) plans to strengthen the supersivion and management at 19 State-owned groups and corporations.

According to CMSC, the supervision will enhance business responsibility in compliance with regulations related to the use of capital and assets and detect shortcomings in production and business.

Under the plan, CMSC will focus on three tasks: maintenance and development of State capital, supervision over firms’ activities in projects as well as review the operations to help set targets and improve competitiveness while following laws and regulations on management and use of State capital and assets.

All the work aims to enhance financial transparency.

The 19 groups include the Việt Nam National Oil and Gas Group (PetroVietnam), Việt Nam Electricity (EVN), Việt Nam National Coal and Minerals Holding Group (Vinacomin), Việt Nam Post and Telecommunication Group (VNPT), MobiFone, Vietnam Airlines, Airport Corporation of Việt Nam (ACV), Việt Nam Railway, Việt Nam Expressway Corporation (VEC), Việt Nam National Shipping Lines (Vinalines), Việt Nam National Petroleum Group (Petrolimex), Việt Nam National Chemical Group (Vinachem), Việt Nam National Tobbacco Corporation (Vinataba), Việt Nam Rubber Group (VRG), Việt Nam National Coffee Corporation (Vinacafe), Việt Nam Forest Corporation (Vinafor), Việt Nam Northern Food Corporation (Vinafood 1), Việt Nam Southern Food Corporation (Vinafood 2) and State Capital Investment Corporation (SCIC).

These enterprises are run by five ministries. Topping the list is the State Capital Investment Corporation (SCIC) under the management of the Ministry of Finance. The remaining 18 SOEs are managed by the ministries of Industry and Trade (MoIT), Transport (MoT), Agriculture and Rural Development (MARD), and Information and Communications (MIC).

CMSC will pay special attention to the Việt Nam Electricity (EVN), who are currently losing money in a number of projects.

Of the 13 current investment projects of EVN, only two of them have started to make profit, the rest 11 have not yet shown signs of effectiveness.

PVN has asked the Government's permission on the use of State capital to handle difficulties in the loss-making projects.

Việt Nam Chemical Group (Vinachem) is also facing difficulties in its potassium rock salt processing and exploitation project in the province of Khammuane in Laos after pouring VNĐ10 trillion into the megaproject over 15 years.

According to consolidated financial statements as of December 31, 2017, the total value of State equity in these 19 groups and corporations reached more than VNĐ1 quadrillion (US$43 billion) and the total value of assets was VNĐ2.3 quadrillion, accounting for 42 per cent of the country’s total GDP.

Under a 2018 decree establishing the CMSC, the committee is responsible for managing State capital in companies that are entirely owned by the State, in joint stock companies and in limited liability businesses with State investment and multiple members. — VNS  

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