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Currently, many large corporations have faced difficulties in implementing investment projects. Photo: Nguyen Thanh

"Kick the ball" responsibility

Recently, Vietnam Airlines Corporation has faced many problems in project investment procedures.

At the working session of the Prime Minister's Working Group to inspect the implementation of the Government's tasks, the Prime Ministerassigned the State Capital Management Committee at the enterprise. Mr. Pham Ngoc Minh, Chairman of the Board of Directors of Vietnam Airlines,saidthat Vietnam Airlines has submitted a plan for aircraft investment for two years, but Hanoi People's Committee has not submitted it to the Ministry of Planning and Investment.

“From the time we set up the project to the submission to the Government Standing Committee, it took six months at the longest andthree weeks at the shortest. And now we have submitted it for two years but no reply,” said Mr. Minh.

The problems of the licensing authority in the airport area was also mentioned by Vietnam Airlines’ leaders. Specifically, Vietnam Airlines has set up an investment project to build aircraft repair and maintenance facilities since 2010, but so far the project has not been granted a construction permit. Vietnam Airlines has asked the Hanoi People's Committee and the Ministry of Construction, as well as many other agencies, but so far there has been no change.

It takes too much timeto askrelevant ministries and branches when facing difficulties and problems, Mr. Nguyen Duc Chi, Chairman of the Board of Directors of State Capital Investment Corporation (SCIC),saidthere is an incident that the unit reported to the Commission, the Commission said that the issue related to the Law on Public Investment should ask the Ministry of Planning and Investment. When enterprises report to the Ministry of Planning and Investment, they can only send to the Ministry of Finance. "Many petitions and problems have not been solved. The replies often speak in accordance with the law, even extract one thing from another and then ask to do it according to the law," Mr. Chi said.

Need to accompanybusinesses

According to the report of the Standing Working Group of the Prime Minister on difficulties, obstacles and recommendations of the State Capital Management Committee in enterprises and groups, corporations need to be removed and investment issues are reminded too much. Regarding the implementation of investment projects, the authority to approve projects of the owner's representative agency has not been clearly defined, leading to many inconsistent interpretations between the Commission, ministries, industries and businesses. The recommendation was that the Government assigned the Ministry of Planning and Investment and the Ministry of Finance to continue completing the plan of amending and supplementing provisions of the Investment Law, Law 69/2014-QH13 to clarify the approval competence of agencies representing owners and avoiding the situation of many inconsistent interpretations in the process of law implementation.

In addition, on the transferal of rights and responsibilities of the governing body to the public investment project from the ministries to the State Capital Management Committee at the enterprise, the report states that according to the provisions of Decree 131 / 2018 / ND-CP, projects using public investment capital transferred to the Committee will be inherited by the Committee and continue to fulfill all the tasks under the authority and responsibilities of the owner's representative agency.

In principle, the tasks of the governing body and level of investment decision are also inherited and performed by the Committee during the transition period in parallel with the duties of the owner's representative agency as prescribed. However, for the assignment of the remaining domestic central budget capital investment plan of the Medium-term Public Investment Plan for the 2016-2020 period, the Government issued Resolution No. 50 / NQ-CP of July 15. On July 7, 2019 to agree to assign the central budget investment plan in 2019 to projects transferred by the Corporations and Corporations to the Committee. As such, public investment projects will continue to be implemented by ministries as the governing body and level of investment decisions. However, at present, ministries still have different opinions on this issue. Proposals are sent to the Government and the Prime Minister to direct and urge the Ministry of Planning and Investment to expeditiously review and identify the nature of projects and propose plans to assign budget investment plans. The Central Committee of 2019 follows the above-mentioned principle so that the Committee and ministries have sufficient grounds for coordination and implementation.

From a specific enterprise perspective, Mr. Nguyen Duc Chi saidthat: "What we want is that any issue under the authority of the Committee will be solved for businesses, any issues related to legal policies should be approached, shared and accompanied with enterprises."

In addition to project investment, Mr. Le Minh Chuan, Chairman of the Board of Members of Vietnam Coal-Mineral Industries Group (TKV), added that TKV faces many obstacles in equitization, especially land issues.

"Proposing that in the future, there should be drastic guidance on determining land value and land use after equitization. At present, bringing historical cultural values into enterprise value calculation, we hire consultants who have units say 1 percent, some units say 2 percent, butare 1-2 percent correct? I did 1-2 percent and then returned a few years later to say it was not good, it was very difficult,"said Mr. Chuan.