CORPORATE FINANCE DEPARTMENT COMPLETING MECHANISMS AND POLICIES ON RESTRUCTURING STATE-OWNED ENTERPRISES (SOES)

CORPORATE FINANCE DEPARTMENT COMPLETING MECHANISMS AND POLICIES ON RESTRUCTURING STATE-OWNED ENTERPRISES (SOES) 30/07/2020 10:21:00 357

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In the afternoon of July 14, 2020, at the headquarters of the Ministry of Finance, the Corporate Finance Department organized a preliminary meeting to evaluate the results of the first 6 months of the year and deploy the strategies for the last 6 months of 2020. In the first 6 months of the year, the Department has submitted to the Government, the Prime Minister and the Ministry of Finance many important mechanisms and policies related to the equitization and divestment of state capital in enterprises.

In the afternoon of July 14, 2020, at the headquarters of the Ministry of Finance, the Corporate Finance Department organized a preliminary meeting to evaluate the results of the first 6 months of the year and deploy the strategies for the last 6 months of 2020. In the first 6 months of the year, the Department has submitted to the Government, the Prime Minister and the Ministry of Finance many important mechanisms and policies related to the equitization and divestment of state capital in enterprises.

Focusing on the financial supervision of SOEs

Mr. Dang Quyet Tien, Director of the Corporate Finance Department, reported at the Conference that in the first 6 months of 2020, the Corporate Finance Department always closely supervised the situation, promptly proposed solutions to the Ministry leaders, advised with the Government and the Prime Minister in directing, administering and enhancing the mechanism of management, supervision and use of capital and assets at enterprises; restructuring, equitization, divestment of state capital in enterprises, strengthening inspection and supervision of State agencies for State-owned enterprises (SOEs); continue to promote equitization, restructuring SOEs ...

Until June 30, 2020, the Corporate Finance Department received and processed more than 7,000 documents, submitted 1,080 documents to the Ministry leaders for signing and Executive Order signed and issued 603 official dispatches, processed and signed for issuance 326 official dispatches on the schemes, mechanisms, policies and handling issues related to corporate finance; regulations on equitization, restructuring SOEs ...

In researching and developing mechanisms and policies, the Department has actively coordinated with related Departments to research and formulate mechanisms and policies on corporate finance. Until June 30, 2020, the Corporate Finance Department has submitted to the Ministry and to the Government and the Prime Minister 07 projects and continued to implement them in the work program on 10 projects for the last 6 months of year; submitted to Ministry for promulgation 02 Circulars; the remaining 07 circulars are formulated and completed for submission to the Ministry for promulgation in the last 6 months.

Regarding the general reporting and periodic work according to the provisions of law, the Department always promptly summarizes and develops a report on investment activities; management and use of state capital in enterprises; SOE restructuring and equitization; results of evaluation and rating of SOEs ....

Although from the beginning of the year, the Covid-19 pandemic had a strong influence on the enterprises’ production and business, performing the role of state management in finance enterprises, the Corporate Finance Department has timely analyzed and assessed the operation of SOEs, proposing solutions to remove difficulties for production and business to ensure social security.

Especially in the management and financial monitoring, regarding the inspection and supervision of corporate finance and business rating, the Corporate Finance Department has submitted to the Ministry for promulgation Decision No. 281 / QD-BTC dated 02 / 3/2020 which announces the Supervision Plan for state capital investment in enterprises in 2019; Decision No. 404 / QD-BTC dated 24/3/2020 which approves the financial monitoring plan for 2020 for enterprises which are owned by the Ministry of Finance.

Regarding the restructuring, equitization and divestment of state capital in enterprises, the Corporate Finance Department has urged corporations to report the progress of equitization, restructuring and divestment of state capital at enterprises by monthly and quarterly reports to the Ministry and quarterly reports to the Prime Minister on the situation of restructuring and equitization of SOEs.

In addition, business support activities are also implemented by the Department. Specifically, in the first 6 months, the Department has actively coordinated with relevant Ministries, branches and units in financial support; allocating and providing funding for Tourism Promotion Program, Investment Promotion, human resource development support for SMEs; resolving petitions, questions of enterprises ... Until June 30, 2020, the Department has participated in over 1,670 documents answering the opinions of units of the Ministry on issues related to land management and use, projects investment, securities, banking and finance, issues of financial handling, equitization and divestment of enterprises, which are handled by other Departments under the Ministry.

Striving to complete the goals for 2020

In order to accomplish the goals and plans set out in 2020, the Corporate Finance Department also foresees the Department's work plan for the last 6 months focusing on the following aspects: researching and developing policies and mechanisms; general reporting activities; inspection, supervision and rating of enterprises; restructuring and equitization of SOEs ...

Specifically, in terms of policy research and development, the Department will continue to improve and review the proposals submitted to the Government, the Prime Minister and the proposal submitted to the Ministry of Finance for promulgation such as: review and propose amendments and supplements to Law No. 69/2014 / QH13 to submit to the Ministry for submission to the Government for submission to the National Assembly for consideration and inclusion in the National Assembly's Working Program for the period of 2020-2021 or 2021-2022 ; Decree on management and use of revenues from ownership conversion, public non-business units and transfer of state capital; Circular guiding financial handling, determining the value of public non-business units, selling shares for the first time and managing and using the proceeds from converting public non-business units into joint-stock companies ...

In general summarizing and reporting work, the Department will continue to implement reports on: Investment activities and management and use of state capital in enterprises nationwide in 2019 to report to the National Assembly; Report to the Prime Minister on summarizing financial supervision and performance evaluation, rating of state-owned companies in 2019 and summarizing the situation of state capital investment in enterprises in 2019 ...

In addition, the Corporate Finance Department will pay more attention to the inspection, supervision and rating of businesses such as: Monitoring the situation of state capital investment in enterprises of State Corporations, businesses of localities according to the plan approved by the Ministry; implementing the supervision of state capital investment in enterprises in 2019 at a number of corporations; carry out thematic supervision on equitization of enterprises ...

Regarding the arrangement, equitization, restructuring of SOEs, the Department will take the initiative and continue to participate in the Steering Committee and the Equitization Assisting Group of Economic Groups and State Corporations. Handling problems and difficulties of Ministries, branches and localities when implementing SOEs arrangement and equitization under the Prime Minister's approval scheme.

At the Conference, representatives of the Divisions of the Department also contributed opinions to clarify the results achieved by the Department in the first 6 months as well as raised problems, recommendations and proposals to complete the unit's general work in the last 6 months.

Closing the Conference, Mr. Dang Quyet Tien, Director of the Corporate Finance Department, directed the Divisions to be more proactive in the work assigned to accomplish the 2020 goals set out by the Department.

Accordingly, one of the main solutions to be implemented in the last 6 months is to enhance the responsibility of the Department leaders, the heads of Divisions and each official to strengthen discipline. Moreover, specific tasks will be assigned to the head of Divisions and officials associated with the progress, quality requirements of each project, each work in the plan, the work program in the last 6 months of the year. Monthly, quarterly check, urge the progress and quality of work of individuals and Divisions.

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