Established by the Government, the Committee for Management of State Capital (CMSC) has one Chairman and at most four Vice Chairmen appointed or dismissed by the Prime Minister.
The committee shall be responsible for managing capital worth VND820 trillion (nearly $36 billion) and a total value of assets at over VND1.5 quadrillion ($66.36 billion) invested at 19 state corporations and groups.
It also proposes overall strategy for investment development of these enterprises and then submits it to the Government and the Prime Minister for approval.
Of the 19 corporations and groups, there are one sovereign fund named the State Capital Investment Corporation and the rest are those in which Vietnam government owns 100 per cent or majority stakes.
Most of them are now under the management of Ministry of Industry and Trade and Ministry of Transport, including six groups and six corporations.
At the launching ceremony, the committee and the five ministries of Industry and Trade, Transport, Agriculture and Rural Development, Information and Communications, and Finance signed the memorandum of understanding on transferring the powers that come with representing the state ownership in the 19 corporations to the Committee for State Capital Management.
CMSC’s establishment shows the government’s ambition to overhaul SOEs which lack business efficiency or even get big loss. It also aims at improving transparency through separating the regulatory role of ministries in SOEs.