Regulatory overlapping was the biggest problem at State-owned enterprises (SOEs) since they were handed over to the Commission for the Management of State Capital at Enterprises, officials have said.

Inside a railway station managed by the Vietnam National Railway Corporation (VNR).
(Photo baochinhphu.vn)

According to vice chairwoman Nguyen Thi Phu Ha, the commission was responsible for managing State capital at 19 large-cap SOEs.

Among the 19 are the National Oil and Gas Group (PetroVietnam), the Vietnam National Petroleum Group (Petrolimex), the Vietnam Rubber Group (VRG), Vietnam Electricity (EVN) and the Vietnam National Railway Corporation (VNR).

Under Decree 131/2018/ND-CP issued by the Government in late September 2018, the business conditions at the SOEs should remain unchanged after they were handed over to the commission.

But there were still problems, Ha said at a Government meeting on March 3.

Minutes from the ministries that used to manage the State capital at the 19 SOEs showed the companies had not accomplished nearly 260 tasks, she said.

These tasks had been assigned and were supposed to be completed before the SOEs were moved to the commission, she said.

Some projects were still facing problems after 10-20 years, she added.

“Some projects are not in line with existing policies, and management units have been asked for clarification,” she told the meeting.

“The SOEs must ensure State capital is preserved and used efficiently. If not, they are required to report to the commission,” Ha said.

Regulatory overlapping had made it difficult for the SOEs to either operate by themselves or ask for State funding, according to the vice chairwoman.

VNR is among the companies that has had problems with business operations. The company has asked the commission to hand back control to the Ministry of Transport.

Before the commission took charge of the State capital in VNR, the Government had funded the company through the Ministry of Transport. After two years, the ministry is still in charge of providing operating capital for the company and manages railway assets, even though the company is now managed by the commission.

That means if VNR was to operate independently, the Government needed to amend several policies on procurement, railway operation and public asset management, according to VNR chairman Vu Anh Minh.

Vice Chairwoman Ha said the Prime Minister had asked the transport ministry and the commission to work together to find a solution for the case.