New law to untie the hands of State-invested enterprises

A workshop on the draft Law on Management and Investment of State Capital at Enterprises, organised by the Ministry of Finance in HCM City on August 5. Photo thuenhanuoc.vn

HCM CITY — The draft Law on Management and Investment of State Capital at Enterprises is expected to solve current problems, thereby helping State-owned enterprises develop.

This is the opinion of delegates at the workshop on the draft Law on Management and Investment of State Capital at Enterprises, organised by the Ministry of Finance in HCM City last week.

This draft law has added a number of new solutions to overcome legal gaps regulating the management and investment of State capital in these enterprises.

The draft law also clearly stipulates processes and procedures, clearly assigns tasks to agencies, required documents, and verification content for reporting to the National Assembly for approval of the capital investment policies of enterprises.

In addition, the draft also updates a number of new areas where the state needs to invest capital in enterprises and legislates regulations on the accountability of agencies and individuals to the National Assembly, the Government and related agencies.

Võ Hữu Hạnh, Director of the City Corporate Finance Department, said that the Draft Law has made innovations to overcome a number of shortcomings and limitations and promptly remove obstacles in production and business activities of enterprises.

At the same time, the changes in this draft are expected to ensure compliance with changes in the legal system related to the management and use of state capital invested in production and business at enterprises. From there, it will contribute to state-owned enterprises continuing to develop rapidly, promoting their role as a core force in socio-economic development.

Lê Ngọc Thuỳ Trang, General Director of the HCM City Finance and Investment State Owned Company (HFIC), said that the changes in this draft have “untied” businesses.

According to previous regulations, even if only one Vietnamese đồng of charter capital were added, the enterprise must carry out procedures from the owner’s representative agency.

However, according to the new Draft Law, businesses only have to carry out procedures from the owner’s representative agency when adding charter capital of over VNĐ1 trillion. If additional charter capital is less than VNĐ1 trillion, the business representatives can make their own decision and is responsible to the owner’s representative agency. — VNS