The Ministry of Finance (MOF) transfer SCIC to the Commission for the Management of State Capital at Enterprises (CMSC)

Undertaking the Decree No 131/2018/ND-CP dated September 29, 2018 of the Government regarding functions, missions, authority and organization structure of CMSC, the MOF hosted the transfer ceremony to hand over SCIC to the CMSC with the participation of representatives from Party Committee of the Centrally-run Businesses’ Sector, the Government Office, Steering Committee for Innovation and Enterprise Development,, related Ministries & Agencies,  Board of Directors, Management team, Supervisory Board of the transferred company; representatives of related departments of the MOF, CMSC and communication& media bodies.

SCIC was established under the Decision No 151/2005/QD-TTG dated June 20, 2005 of the Prime Minister with mandates of state capital management and investment. The establishment of SCIC was part of the economic reform process in general and SOE reform process in particular, to improve the state capital utility efficiency.

At the ceremony, the Minister of Finance, Mr. Dinh Tien Dung, said that despite some remaining issues, SCIC has so far achieved remarkable results in implementing the instructions of the Party and State in the reform of state capital management at enterprises, state capital restructuring and state capital utility improvement so as to raise resources for socio-economic development. When SCIC is transferred to CMSC, Mr. Dinh Tien Dung emphasized some missions that should be implemented to improve SCIC's performance and capacity, namely: continue to finalize SCIC's development strategy for the period of 2019-2025, vision to 2030; accelerate the restructuring, equitization and divestment at enterprises in accordance with the the timeline and plan approved by the Prime Minister; improve corporate governance efficiency and the role of state shareholder at enterprises via the application of advanced international corporate governance standards and methods; enhance and expand the capital investment activities; consolidate the organizational structure and improve SCIC's human resource quality. In addition, The Minister of Finance also proposed that the Prime Minister continue to instruct line ministries and local authorities to seriously implement the transfer the state ownership representation rights at enterprises, which are subject to the transfer to SCIC, to SCIC so that SCIC can uphold its achievement gained so far and contribute to the successful arrangement, reform and performance improvement of SOE as per the Party's guidance.

Mr. Nguyen Hoang Anh, CMSC's Chairman, shared at the ceremony that among 19 companies transferred to CMSC, SCIC played a key role in managing, preserving and developing state capital at enterprises. After receiving SCIC from the MOF, CMSC will continue to closely collaborate with the MOF and other related agencies to instruct SCIC to keep up its performance, fulfil its assigned position, role and missions, to continue the arrangement, reform and restructuring of its portfolio companies in accordance with the plan approved by the Prime Minister. Mr. Nguyen Hoang Anh also request that SCIC's whole team focus its resources to conduct its assigned tasks and report and seek the approval of the MOF and other related agencies during its conduction of business activities on a regular basis.

The transfer of state enterprises to CMSC can be seen as a significant change, which helps solve the remaining issues and limitations of the current model of exercising the state ownership representation rights by establishing a single entity that has full function of state own representation, operates professionally and has adequate accountability.

Additionally, the separation of the function of state ownership representation at enterprises from state administration bodies is essential to create a fair business environment for enterprises and facilitate state agencies to focus on its state management role which is becoming more and more complicated during the socio-economic development progress.