Innovation of the activities of the State Capital Management Committee at enterprises

Prime Minister Pham Minh Chinh has just signed Directive 12/CT-TTg on tasks and solutions to innovate the operations of the State Capital Management Committee at enterprises and improve operational efficiency and promote investment resources of 19 economic groups and affiliated state corporations.

Prime Minister Pham Minh Chinh speaks at a working session with the Committee for Management of State Capital at Enterprises and State-owned corporations and groups. Photo: Duong Giang/VNA

Implementing the policy of the Party and the National Assembly, in 2018, the Government established the State Capital Management Committee at Enterprises (the Committee) and assigned the Committee to exercise the rights and responsibilities of the State ownership representative for 19 economic groups and state-owned corporations - currently holding large resources of the economy, accounting for over 60% of capital and asset resources of state-owned enterprises nationwide. After more than 4 years of operation, the Committee has fully received to exercise the rights and responsibilities of the State ownership representative at 19 economic groups and state-owned corporations in accordance with the provisions of law. The Committee acts as the focal point of the Steering Committee to handle the shortcomings and weaknesses of a number of projects and enterprises that are behind schedule and ineffective in the industry and trade sector, together with economic groups and state-owned corporations to implement important projects to serve socio-economic development. Economic groups and state-owned corporations under the Committee continue to play a key role in many important economic sectors and fields of the country, contributing to ensuring major balances, stabilizing the macro-economy, making great contributions to the state budget, creating important premises and motivation for the development of sectors, fields and the economy, contributing to promoting growth, building an independent and autonomous economy, implementing social security and national defense and security, equity capital and assets are preserved, production and business efficiency of many economic groups and state-owned corporations is maintained, ensuring jobs and income for workers. In addition to the results achieved in recent times, the Committee and 19 economic groups and state-owned corporations still have shortcomings and limitations such as: The legal basis for the Committee's operating model is still problematic and not really effective; the initiative, flexibility, positivity and creativity are still limited, and coordination with ministries, branches and localities still has many difficulties. Economic groups and state-owned corporations have not yet proactively promoted the full effectiveness of capital resources and state-assigned assets, especially in accelerating the progress of large and important investment projects. Almost no new projects have been started in recent periods. The shortcomings and limitations stem from both objective and subjective causes under the responsibility of many related entities: the Government, ministries, committees and enterprises, etc. The main causes include: Major legal problems; coordination with ministries and branches is not yet tight and effective; more efforts and initiative are needed from the Committee and economic groups and state-owned corporations. Implementing the Politburo 's conclusion on continuing to implement the model of the Committee as a specialized agency representing the ownership of state-owned enterprises and state capital in enterprises, to continue to research, perfect the model and innovate the Committee's operations, while improving the quality and efficiency of operations, promoting the effectiveness of investment capital of economic groups and state-owned corporations under the Committee in implementing socio-economic development plans and strategies, the Prime Minister requested the Committee for State Capital Management at Enterprises, relevant ministries, agencies and economic groups and state-owned corporations to proactively and actively handle and effectively resolve difficulties, obstacles and shortcomings and direct and organize the good implementation of a number of tasks and solutions. Resolutely handle backlog issues that have lasted for many years Specifically, the State Capital Management Committee at Enterprises will urgently complete and submit to the Prime Minister before May 15, 2023 a plan to implement the Politburo's conclusion on continuing to improve and innovate the Committee's operations in accordance with the direction of the Government's leaders in Official Dispatch No. 1200/VPCP-DMDN dated April 14, 2023 of the Government Office . At the same time, the Committee will resolutely handle backlog issues that have lasted for many years, especially issues that have a deadline for submission to the Government Party Personnel Committee and the Politburo. In particular, the Committee must complete the final handling in May 2023 and report to the Prime Minister on the following projects and enterprises: Phase 2 production expansion project of Thai Nguyen Iron and Steel Plant, Quy Xa Iron Ore Mining and Selection Project, Lao Cai Iron and Steel Plant Project, Dung Quat Shipbuilding Industry One Member Limited Liability Company. In addition, the Committee needs to improve the quality of its staff, conduct public and transparent selection to find talented people, and at the same time study the regime and policies in accordance with the Party's regulations and statutes and the State's laws; promptly approve according to its authority or submit to the competent authority for approval, and complete before May 30, 2023. Proactively and resolutely handle arising problems. The State Capital Management Committee at Enterprises strengthens inspection, supervision, and approval of plans and programs, especially production and business plans and development investment plans of economic groups and affiliated state-owned corporations, contributing to the development of industries, fields, regions, and localities and making increasingly better contributions to the socio-economic development of the country; more clearly demonstrating the role of leading, creating motivation, paving the way, and promoting the development of other economic sectors. The Committee needs to be proactive and timely in better grasping the situation, especially the major difficulties and problems that are bottlenecks in the production, business and investment activities of enterprises. On that basis, the unit promptly resolves issues within its authority; coordinates and makes recommendations to ministries, branches, or advises the Government to resolve outstanding issues and newly arising issues. The Committee shall fully and promptly perform the tasks of the representative agency of the owner at enterprises as prescribed; be proactive and resolute in handling problems arising from economic groups and state-owned corporations under the responsibility and authority of the representative agency of the owner, especially in coordination and consulting with ministries and agencies when performing related tasks and in the process of implementing tasks; carefully review legal regulations, clearly express viewpoints and specific solutions, and clearly state issues requiring consultation with ministries and agencies in the field of state management so that agencies have a basis for giving opinions. Proactively seek and implement new projects for investment. Economic groups and state-owned corporations under the Committee shall raise awareness and responsibility in performing the assigned tasks of managing state capital and assets at enterprises. Promoting the spirit of self-reliance, self-improvement, enhancing proactiveness, creativity, daring to think, daring to do, daring to take responsibility, striving with the highest sense of responsibility for the interests of the nation and people, creating new momentum, thinking, methodology, new approaches to be determined to do, together with the support of state management agencies at all levels and sectors. With that sense of responsibility, units proactively seek and implement new projects for investment, especially projects related to transportation, energy, innovation, digital transformation, circular economy, and climate change response; continuing to restructure enterprises according to the Project approved by competent authorities, focusing on innovating business administration models towards modernization, adapting to new conditions, improving competitiveness, diversifying markets, and diversifying products. Units need to promote the implementation of major, key investment projects of the State in important areas according to strategies and plans approved by competent authorities and according to the Government's Socio-Economic Recovery and Development Program; creating important premises and motivations for the development of industries, sectors and the whole economy. Do a good job of investment preparation and timely disbursement of investment capital to speed up progress. Research and increase investment in innovation, emerging industries and sectors. Complete production and business tasks according to assigned plans, strive to exceed plans, contribute the most to ensuring major balances for the economy, stabilizing the macro-economy, revenue for the state budget, and creating jobs for workers. In particular, pay special attention to ensuring major balances in electricity, coal, oil and gas, gasoline, products that are raw materials for manufacturing industries and for national defense and security, passenger and cargo transportation, agricultural and forestry products. Building corporate culture, promoting cultural factors in production and business activities; respecting the objective laws of the market economy, respecting the laws of supply and demand, the laws of competition; contributing to the Government, ministries and branches in regulating the economy, building an independent and autonomous economy associated with active and proactive integration, deep and substantive, effective. Accelerating the progress of building strategies and development plans for sectors and fields. Relevant ministries and agencies, based on their functions, tasks and authority, will accelerate the progress of building strategies and development plans for sectors and fields for the period 2021-2030, with a vision to 2050, to link the development strategy of state-owned enterprises with the development of sectors and fields in order to promote the country's important resources, including: Master plan on national energy; Planning for exploration, exploitation, processing and use of minerals; National power development plan, National oil and gas reserve and supply infrastructure plan of the Ministry of Industry and Trade. Master plan for the development of the national airport and seaport system of the Ministry of Transport ; Information and communication infrastructure plan of the Ministry of Information and Communications; National forestry sector plan of the Ministry of Agriculture and Rural Development. In case the sector strategies cannot be issued, in May 2023, there should be instructions for the Committee and economic groups and state-owned corporations on how to handle the situation so as not to affect the development and issuance of strategies, production and business plans and investment development of economic groups and state-owned corporations. Urgently advise the Government and the Prime Minister to carry out tasks and solutions according to the tasks assigned by the Government in Resolution No. 68/NQ-CP dated May 12, 2022 of the Government on continuing to innovate, improve operational efficiency and mobilize resources of state-owned enterprises, focusing on economic groups and state-owned corporations for socio-economic development. Actively and promptly coordinate with the State Capital Management Committee at Enterprises and affiliated economic groups and state-owned corporations to promptly remove difficulties and obstacles arising under the functions, tasks and state management fields of ministries and agencies in production, business, investment, restructuring, equitization, divestment, and rearrangement of houses, land, etc. of enterprises; especially difficulties and obstacles that are bottlenecks in production, business and investment activities of enterprises; In the immediate future, focus on thoroughly handling issues as recommended by the Committee and economic groups and state-owned corporations in May 2023. Research and propose to competent authorities to decentralize more strongly to the representative agencies of owners in exercising the rights of the Prime Minister; at the same time, strengthen supervision and inspection by state management agencies on state capital management and the implementation of rights and responsibilities of state owner representative agencies. Research appropriate mechanisms and policies, increase resources for enterprises from after-tax profits . The Ministry of Finance urgently submits to the Government for submission to the National Assembly Standing Committee and the National Assembly a draft Law on fundamental and comprehensive amendments to Law No. 69/2014/QH13 according to the conclusion of the National Assembly Standing Committee and the direction of the Government leaders in Document No. 2738/VPCP-PL dated April 21, 2023; Strive to submit to the National Assembly for approval and promulgation at the October 2023 session. Research appropriate mechanisms and policies, increase resources for enterprises from after-tax profits and other legal capital sources to improve the production and business capacity of enterprises; report to the Prime Minister in the second quarter of 2023. The Ministry of Planning and Investment shall research and propose separate mechanisms and policies to develop a number of large-scale economic groups and corporations operating in a number of industries and fields to promote the role of pioneering and leading enterprises in other economic sectors to carry out a number of important tasks of the country; Report to the Prime Minister in the fourth quarter of 2023. Urgently submit to the Government to amend and supplement Decree No. 10/2019/ND-CP dated January 30, 2019 of the Government on the implementation of rights and responsibilities of state ownership representatives to better suit the requirements of enterprise management, innovate owner management, promote decentralization, create flexibility and initiative in the activities of the Committee as well as enterprises and associated with strengthening supervision and inspection of state management agencies.

Study the mechanism to promote state-owned enterprises to boldly invest, improve competitiveness, keep up with the pace of development and application of science and technology; change the business model of the global economy, development trends in the world; the mechanism to select organizations and individuals to manage and operate state-owned enterprises or part of assets and projects of state-owned enterprises for a certain period of time, report to the Prime Minister in the fourth quarter of 2023. The Ministry of Science and Technology shall preside over and coordinate with the Ministry of Planning and Investment and relevant agencies to study and amend regulations on changing the purpose of using the Science and Technology Development Fund of enterprises to facilitate investment in incubators in fields related to science, technology and innovation, ordering new products, investing in creative startups, etc.; Report to the Prime Minister in the fourth quarter of 2023. Ministers, heads of ministerial-level agencies, Chairmen of the State Capital Management Committee at Enterprises, Chairmen of the Board of Directors/Board of Members, General Directors of economic groups and state-owned corporations, according to their assigned functions and tasks, are responsible for seriously, promptly and effectively implementing this Directive; regularly inspecting and evaluating the implementation; promptly reporting and proposing to the Prime Minister difficulties and problems beyond their authority and solutions to overcome them during the implementation process. The Prime Minister assigned the State Capital Management Committee at Enterprises to monitor, urge, synthesize and report to the Prime Minister on the implementation of the tasks stated in this Directive in December 2023.

VNA/Tin Tuc Newspaper