NA committee proposes halting establishment of new groups

August 04, 2011 | 16:53

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The 12th National Assembly Economic Committee proposed a halt to the establishment of new economic groups to the 13th National Assembly.

Former Head of the 12th National Assembly Economic Committee Ha Van Hien

This is one of ten other recommendations that the committee sent to the National Assembly (NA), said Former Head of the committee Ha Van Hien.

He said the move is necessary to comprehensively review the operations of currently existing state-owned economic groups, including capital management between parent companies and their subsidiaries and general business administration practices.

The NA has already found violations in asset management in a number of economic groups, and considers a review to be essential.

According to the former official, regulations concerning state-owned groups and their responsibilities must be made clearer. The role the state plays in the management of these firms and internal management must be examined in order to improve efficiency.

"Whether a company is state-owned or private does not matter, but it should be managed efficiently," he said.

“In the past there was one Law on Foreign Investment and a separate Law on State-owned Enterprises. But now we only have the Law on Enterprises, and many other policies have been made in order to to create an equal playing field for the entire business sector," said Hien.

However, he added that state-owned enterprises have extra responsibilities because they are tools which the state uses to fulfill socio-economic goals.

The 12th National Assembly Economic Committee recommended including regulations on the capital management of state-owned enterprises for the production and business sectors.

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