Sign up | Log in



Home  >>   Daily News  >>   Vietnam >> Investment >>Gov't improves supervision of SoE investment
NEW UPDATES Asean Affairs  13 October  2015  

Gov't improves supervision of SoE investment

The Government has issued regulations on further tightening the supervision on State capital directed into enterprises, in a move to assure investments are increasingly effective.

Under Decree 87/2015/ND-CP issued last week, the Government will provide financial supervision, performance evaluations, and disclosures of financial information of enterprises, in a bid to quickly resolve difficulties faced by firms and encourage them to complete business plans.

The move is expected to improve the performance of State-owned enterprises (SoEs), especially when the Government is speeding the equitisation and divestment of State capital at SoEs.

Currently, there are also regulations on supervising SoEs, however, they remain inadequate and loosely enforced, especially in the disclosure of firms' financial information.

Deputy director of the Ministry of Finance's Corporate Financial Department, Dang Quyet Tien, said there remained restrictions on disclosures of financial information among SoEs. As of August 31, 2014, only 76.9 per cent of State-owned corporations and groups had mapped out their financial supervision reports.

Under the decree, the Ministry of Finance (MoF) has been asked to coordinate with other ministries and agencies to take over supervision, which must also comply with existing regulations on management and use of State capital in production and business.

The decree states that the disclosure of firms' financial information will be made public on a regular basis based upon six-month and one-year audited financial reports of enterprises.

Under the new decree, the assessment of the effectiveness of the performance of firms will be based on their turnover; post-tax profits and return on equity; debt solvency; obeying legal regulations on State capital investment, management and usage; tax payments, as well as budget and social welfare contributions.

Further, state-owned firms can be placed under special monitoring when there are signs of financial problems, according to the decree.

As for investment projects, the supervision will focus on overseeing capital mobilisation sources, as well as progress in the construction of projects and disbursements.

Supervisory agencies will also monitor enterprises' investments in their subsidiaries and associated companies.

Further, under the Decree, the MoF is to compile a plan in the fourth quarter on supervising State capital in businesses for release before January 1, after which related ministries must comply with the plan.

Where violations are detected, the MoF must report to the Prime Minister and apply sanctions according to the law.

The finance ministry will also be required to receive and make public the enterprises' financial information on its website starting in the 2016 fiscal year.

Experts said that the new regulations were timely and meant to avoid losses of State capital, as a number of SoEs have reported losses in recent years.

Previously, due to inadequate supervision by ministries and agencies, losses were reported at a number of SoEs. For instance, Viet Nam National Shipping Lines (Vinalines) lost more than VND1.6 trillion (US$71.1 million) last year, according to the Government's website

Phap luat thanh pho HCM (HCM City Law) newspaper quoted Dr Nguyen Chi Hai from Viet Nam National University – HCM City as saying that SoEs played important roles in the economy, however, their performances were not as effective as expected.

According to Hai, although SoEs account for roughly 70 per cent of the country's total investment, 60 per cent of the country's credit and 70 per cent of the country's official development assistance (ODA), these businesses make up only some 30 per cent of the country's GDP growth and represent up to 79 per cent of commercial banks' questionable debts. — VNS

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories                           October 13 , 2015 Subsribe Now !
• Gov't improves supervision of SoE investment Subcribe: Asean Affairs Global Magazine
• IFC to finance $40m Myanmar-based gas turbine project
• SGX to conduct review of listed companies' annual reports 
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• Philippine firms on billion-dollar global shopping spree
• Laos SEZs prove to be major job generators
Asean Analysis                   September 24, 2015
• Asean Analysis September 24, 2015
Advertise Your Brand

Asean Stock Watch  October 12,   2015
• Asean Stock Watch-October 12, 2015
The Biweekly Update
• The Biweekly Update September 18, 2015

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2017 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand