A government report forwarded to the National Assembly (NA)’s ongoing session sets a target that, by 2025, all economic groups and State-owned corporations will apply governance measures on a digital platform that are close to the principles from the OECD. Within the same period, there are to be least 25 State-owned enterprises (SOEs) with equity capital or capitalization on the stock market of over $1 billion, with at least ten having over $5 billion.

A pilot program will be conducted to select eligible and reasonably-sized enterprises post-equitization to register for trading and to list on regional and world stock markets.

To achieve these objectives, the Ministry of Finance has offered a range of solutions. It proposes that the NA consider including comprehensive amendments to Law No. 69/2014/QH13 in the Law-making Program for the 2023-2025 Period. There are five core elements to focus on:

First, adding “enterprises of the political organization, socio-political organizations” to the subjects under the Law. Second, clearly stipulate that State capital invested in the enterprise to fulfill the contribution obligation of the State as the enterprise’s owner will be defined as the enterprise’s legal entity property / capital, according to the provisions of the Civil Law, and ensuring the principle of equality and autonomy in the operation of a legal entity being an enterprise.

Third, provide specific guidance on the principles of restructuring State capital in enterprises. Fourth, strengthen the assignment and decentralization of authorization to the representative agency of the owner, the Board of Members, the Board of Directors, and the General Director of the enterprise where State capital is invested in association with the implementation of enterprise management according to the enterprise’s legal entity.

Lastly, clearly separate the content of capital management and investment functions of the State owner’s representative from the management and administration functions of State enterprises. The Ministry of Finance also proposed perfecting mechanisms, policies, and laws regulating functions, tasks, powers, and organizational structure, on the basis of summarizing and evaluating the performance results of the State Capital Management Committee.