Firms complain of sluggish state stake involvement

The new provisions will regulate state investment in enterprises. In order to better understand the opinions and wishes of businesses, a National Assembly delegation, led by Vice Chairwoman Nguyen Thi Kim Ngan, visited several state-owned joint-stock companies on Tuesday.

The representative from state-owned Vinamilk has requested the Committee on Economic Affairs to amend the role of state representatives in state-owned joint stock companies. Business people are calling for greater transparency as they believe this will bolster efficiency reforms. Vinamilk’s failed bid for Dalat Milk was cited, with the board being forced to wait too long for a decision from the state representative’s stakeholder in the corporation.

Mai Kieu Lien, Chairwoman of Vinamilk, said: "We already have a board of directors, but the entire board still has to wait for the opinions of the staterepresentatives before doing anything which can easily lead to lost opportunities. In times of harsh competition like this, lost opportunities can cost a business its life".

In reality, clarification of the roles of staterepresentatives in joint stock companies is something that both domestic and foreign investors are concerned about. Despite being able to buy more shares, investors are still hesitating because their decisions and strategies still rely on one controlling shareholder.

Addressing this issue, NA Vice Chairwoman Nguyen Thi Kim Ngan suggested more reviews of all the related decrees and circulars and submit provisions and regulations that hinder the development of enterprises.

Nguyen Thi Kim Ngan, Vice Chairwoman of National Assembly, said: "State representatives should be treated as being equal with other shareholders; they shouldn’t have a privileged position. I suggest the Economic Committee should review and revise all related decrees to ensure fair treatment and transparency".

However, there are still many barriers to the separation between the roles of state representative and the board of directors in the decision-making process and development strategies of businesses. If the amended law can fix this issue, it will boost smoother equitisation and businesses may thrive and become more competitive.