Vietnam: State equity in firms poorly managed

VNS states that “state equity in former State-owned enterprises that have been equitised remains poorly managed due to the overlapping authority of ministries and provincial governments, State Capital Investment Corporation deputy director Le Song Lai told a conference last week on management of state assets.

‘Even in equitised firms, ministries and provincial authorities still intervene in management, which undermines corporate governance and results in a lack of professionalism and accountability,’ Lai said.

The authorized representative of State capital in many of these enterprises has not been identified, said Tran Tien Cuong, director of the enterprise policy research department of Central Institute for Economic Management, with the result that a number of agencies, organisations and individuals were involved simultaneously in exercising State ownership rights. Too often, these agencies were exercising rights that, in fact, belonged to another agency, Cuong said.”

read more: VNS

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