Information is key to monitoring Vietnam’s SOE performance: think tank

Thursday, 2018-07-19 17:14:10
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The state-owned oil group PVN has been plagued with problems in recent years.
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NDO - Data is the most important resource for the representative agencies of state capital to monitor the performance of state-owned enterprises (SOEs) in Vietnam, according to the Central Institute of Economic Management (CIEM).

The statement is part of a report presented by the think tank on how to enhance the monitoring mechanism of the state capital owner’s representative agencies at a workshop on July 19.

A commission has been set up by the government to manage state capital at SOEs but there have been concerns over accountability and its organisational structure as current monitoring mechanisms are considered to be ineffective.

According to the CIEM, it is necessary to build a centralised and comprehensive database for SOEs so that the state capital management commission can make quick and sensible decisions.

The think tank stated that ineffective monitoring of the representative agencies is one of the causes for violations of capital use regulations at SOEs.

It added that such inefficiency is due to ambiguous regulations and a lack of information on state capital and assets.

In addition to building an IT infrastructure system, the CIEM also suggested applying good practices to SOE governance and stepping up risk management as part of the monitoring process while holding the representative agency more accountable.

Official reports reveal that 23 out of 91 state-owned corporations made a total loss of more than VND17 trillion (US$731 million). The return on equity of SOEs also fell by 39% during the 2011-2016 period.

Considerable efforts have been made to deal with struggling state-run enterprises and projects but they have yet to make a recovery.