There remain many shortcomings in management of State-owned economic groups, leading to ineffective use of State funds, deputy head of the National Assembly Economic Committee Vu Viet Ngoan told reporters on the sidelines of the National Assembly sitting on October 26.
Vu Viet Ngoan, deputy head of the National Assembly's Economic Committee (Photo: SGGP)
He said the effect of capital use depends on the management, but the latter factor has yet to be cared about.
The current mechanism of enterprise management is confused, he said, adding that it needs to be rebuilt.
The Government’s supervision, and the role of the Government in management of State-run groups and the role of groups’ owners need to be addressed explicitly, Mr. Ngoan said.
Some State-run giants have gone bankrupt due to poor management. The Government needs to face the fact to find out individual and systematic shortcomings to review and change regulations and policies, he added.
He said the National Assembly has proposed making law on monitoring use of capital by State-run groups and corporations, and the Government has assigned ministries to study it.
The case of the state-run Vietnam Shipbuilding Industry Corporation (Vinashin), which is incurring huge debts and on the brink of ruin, shows that the Government’s monitoring was inefficient, he said. Authorized agencies failed to discover the group’s wrongdoings promptly, he added.
The Government also confessed that the management and implementation of state ownership in Vinashin had been inadequate and confused, according to him
