PM urges better coordination in managing State capital

Prime Minister Nguyen Xuan Phuc addresses the conference (Photo: VNA)

Speaking in conclusion of the conference, the PM said the weak coordination is a reason for the delay in performing a number of important tasks.

He noted that though starting operations for just over one year, the commission has focused on instructing State-own groups and corporations in performing production and business tasks in 2019, resulting in higher revenues and profits, and State capital kept intact and expanded.

The CMSC also received 12 loss-making projects from the Ministry of Industry and Trade and proposed solutions to those projects.

Regarding problems facing the commission, PM Phuc pointed to the delay in some important tasks, such as the approval of managerial positions in some groups and corporation, equitisation and capital pestment, and approval of financial assessment reports. Some groups and corporations failed to fulfill their assigned targets in profit, revenue and contribution to the State budget.

In particular, the PM noted that all groups and corporations have not fulfilled the plans on development investment.

It is the responsibility of ministries, sectors and localities to cooperate with the CMSC, he said, urging the commission to report to him on ministries, sectors and localities which are not cooperative.

The PM again stressed the importance of State-owned enterprises to national development, and the need to continue restructuring and reforming SOEs in order to keep their key role in the economy.

The commission reported that the 19 groups and corporations in which it holds the State capital generated combined revenues of nearly 1,500 trillion VND (64.7 billion USD) in 2019, up nearly 6.4 percent from 2018. Their combined pre-tax profit came to nearly 100 trillion VND, up 28 percent from the yearly plan. The groups and corporations contributed a total 221 trillion VND to the State budget.