Proposal for State-owned enterprises to decide on projects under 5,000 billion VND

The Ministry of Finance is developing three draft Government Decrees on capital management and investment, and supervision mechanisms at enterprises.

One of the notable contents is that the Ministry of Finance proposes that for enterprises with 100% State ownership, the Board of Members and the Chairman of the company decide to invest on a scale of less than VND 5,000 billion from the Development Investment Fund. Above this level, the project will be decided by the Prime Minister and the representative agency of the owner will decide on the investment.

Previously, at the Government Standing Committee Conference with State-owned enterprises, Mr. Le Ngoc Son - General Director of PVN proposed that enterprises be allowed to decide on investment for projects with a total investment of less than VND 5,000 billion, or 50% of charter capital. For projects with an investment capital of up to VND 10,000 billion, the owner's representative agency will decide on the investment policy. For projects over VND 10,000 billion, the investment policy will be decided by the Prime Minister.

Mr. Le Ngoc Son - General Director of PVN proposed to allow enterprises to decide on investment for projects with total investment of less than 5,000 billion VND.

Mr. Le Ngoc Son also proposed that the Prime Minister authorize approval for a number of issues arising in the process of implementing oil and gas exploration and exploitation activities.

Similarly, Mr. Nguyen Anh Tuan, General Director of Vietnam Electricity Group (EVN), also recommended the early realization, innovation and reform of legal institutions, having policy mechanisms, creating new development space for state-owned enterprises.

Mr. Tuan said that currently, most of EVN's projects are over 5,000 billion VND, and there are very few projects under 5,000 billion VND. Therefore, the EVN General Director proposed that the Government consider and create reasonable conditions for enterprises to be proactive in investment and production.

In addition, the Ministry of Finance proposed many new regulations to correct the limitations in monitoring, inspecting, and evaluating the classification of enterprises. Accordingly, monitoring and inspection are expected to be carried out at three levels including the Government, the representative agency of the owner, and the internal supervision of the enterprise. They also proposed to add more signs to determine the possibility of financial insecurity for enterprises after the planned loss period.

The draft also removes the requirement that the land use plan must be approved by the owner's representative agency and consulted with the provinces and cities. Instead, enterprises will develop their own plans for using houses and land after conversion, on the basis of not being linked to the purpose of land use.

Recently, the National Assembly passed Law No. 68 on Management and Investment of State Capital in Enterprises. Law No. 68 is expected to take effect from August 1, instead of early next year as originally planned. This is to maximize resources in state-owned enterprises, serving the target of high growth this year and the coming period.

Chau Anh

Source: https://vtcnews.vn/de-xuat-doanh-nghiep-nha-nuoc-duoc-quyet-dinh-du-an-duoi-5-000-ty-dong-ar953598.html