Encouraging aggressive investment by state-owned companies so they may become more competitive

DNHN - The Ministry of Finance will conduct research and submit a report to the Government for consideration of amending and supplementing current legal regulations, and mechanisms to encourage state-owned enterprises to make audacious investments in boosting their competitiveness and keep up with the advancement and use of science and technology.

Under Resolution 68/NQ-CP of the Government, dated May 12, 2022, on continuing to innovate, enhance operational efficiency, and mobilise resources of state-owned enterprises, focusing on economic groups and corporations in socio-economic development, the Ministry of Finance has just decided to issue an Action Plan to implement this resolution.

The plan, in particular, states that the Ministry of Finance will research and submit a report to the Government for consideration and amendment of current legal regulations, mechanisms to encourage state-owned enterprises to invest audaciously to improve competitiveness, keep up with the advancement and application of science and technology, change the business model of the global economy, and the development trend in the world, and consider the mechanism for selecting organizations and individuals to manage and operate a state-owned enterprise or a part of a state-owned enterprise's assets or projects in a certain period.

Leaders of the Ministry of Finance also tasked the Corporate Finance Department with studying and proposing a close and efficient coordination mechanism among pertinent agencies, in which there is a focal agency to monitor and summarize the activities of state-owned enterprises to swiftly propose the Government and the Prime Minister comprehensive solutions to promote the operational efficiency of state-owned enterprises contribute to maintaining and developing state capital in enterprises.

The proposal also specifies that the Ministry of Finance's top officials would entrust the Corporate Finance Department with researching and presenting to the government changes to the laws governing labour management, pay, and benefits for managers and employees in businesses. Government-owned businesses should operate by the market concept, which is linked to corporate productivity and profitability.

P.V