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Party works out drastic measures to raise SOE efficiency (part 3)

By VNA 12/28/2017 10:21 |

The 12th Central Committee of the Communist Party of Vietnam on June 3 issued Resolution 12 on continued restructuring, renewal and raising of the efficiency of state-owned enterprises_Photo: Internet

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Supervisory boards and individual supervisors must truly act as effective supervisory tools of owners, operate independently and not be led, directed or governed by the interests of members’ councils or boards of directors and executive boards of enterprises. General directors and members of executive boards of SOEs will be appointed or hired by their members’ councils or boards of directors, and perform their tasks and exercise their powers under law and their labor contracts.

To complete the system of incentives and economic levers coupled with enhancing the responsibility, discipline and observance of law in SOEs. To implement wage, bonus and remuneration policies for SOE laborers and managers in conformity with the market mechanism, which are highly competitive based on production and business results. To study and apply the mechanism of payment of salaries and bonuses to general directors and other key managers of enterprises under agreements with the latter. To apply the performance-based assessment system to each working position.

To exclude SOE managers from the system of civil servants and public employees. To extensively implement the recruitment and appointment mechanisms based on competitive, public and transparent examination for all managerial and executive titles and other working positions in enterprises.

To re-arrange, streamline and raise the effectiveness of the apparatus and payroll of SOEs; to reasonably restructure and arrange SOE leaders and managers; to increase training to raise professional qualifications, leadership capacity, political ideology, ethics and lifestyle of SOE leaders and managers; to adopt mechanisms and policies to attract and effectively employ highly skilled workers. To formulate a strategy for development of SOE leaders. To review and raise the standards and conditions on moral quality, leadership and management capacity and professional qualifications of SOE managers.

To ensure the transparency and publicity of SOEs and accountability of their managers, especially in the areas of finance, investment, procurement, use of state capital, business expenses and results, profit distribution, personnel, major transactions, transactions involving persons affiliated to managers, property and incomes of managers in conformity with international standards and domestic regulations. To improve accounting and auditing regulations and the financial reporting system up to international standards.

To improve state management of SOEs

To improve the function of state management of SOEs

- To review and improve the system of laws, mechanisms and policies on SOEs, especially the mechanisms and policies on state economic groups, management of state capital and assets at enterprises, and the restructuring, renewal and increasing of the efficiency of SOEs in line with the Party’s policies and guidelines, the practical situation as well as experiences learned over the past time.

- To increase the capacity, effectiveness and efficiency of the inspection, examination, audit and supervision by state management agencies of SOEs; to prevent, detect and strictly handle law violations, negative practices, and acts of corruption and wastefulness in SOEs. To clearly define the responsibilities of inspection and audit agencies for results of inspection and audit of SOEs. To improve the supervision system and indicators for evaluation of the safety and efficiency and ranking of SOEs and representatives of the owner of the State’s shares and capital contributions. To strictly manage and supervise the raising and use of capital by SOEs, especially foreign loans, domestic and overseas investment projects, capital sources for acquisition and merger of enterprises; to restrict to the maximum the issuance of government guarantee for SOEs; to establish and develop a unified and complete national database on SOEs and state capital and assets at enterprises.

- To enhance the direction, examination and supervision of the implementation of approved plans on equitization and state capital divestment. To enhance the responsibility of ministries, sectors and localities as well as organizations and individuals representing the state owner, especially leaders, in implementing the Party’s guidelines, the State’s policies and laws, approved plans on the restructuring and renewal of SOEs, particularly on equitization and state capital divestment, ensuring publicity and transparency.

To improve the organization to perform the function of the State as the owner of SOEs and the State’s shares and capital contributions at enterprises

- The State will fully perform the responsibilities of the owner of SOEs and the State’s shares and capital contributions at enterprises; truly play the role of an investor and owner that has same rights, obligations and responsibilities like other investors at enterprises. To ensure the right to autonomy of SOEs under the market rules. To respect the independence of members’ councils, board of directors, chairpersons of members’ councils and board of directors, general directors and executive boards of SOEs in exercising their rights and discharging their responsibilities to ensure transparent, accountable, professional and highly effective operation and governance.

- To expeditiously establish a specialized state body to represent the owner of SOEs in: (1) exercising the rights and discharging the responsibilities of the representative of the state owner of SOEs and the State’s shares and capital contributions at enterprises; (2) approving and supervising the SOE’s implementation of business production and business strategies and plans in line with socio-economic development plans and sectoral development master plans; and (3) coordinating with related agencies in properly implementing the law on organization and personnel work in enterprises.-

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