Request to clarify the mechanism of rewarding and dismissing capital representatives at state-owned enterprises

NDO - Speaking for the first time after being elected by the National Assembly to hold the position of Minister of Finance, Mr. Nguyen Van Thang requested that there should be a mechanism for rewarding and dismissing representatives of state capital at enterprises and heads of state-owned enterprises in a worthy manner.

Minister of Finance Nguyen Van Thang speaks to clarify issues raised by National Assembly deputies at the meeting on the afternoon of November 29. (Photo: DUY LINH)

Ensuring state-owned enterprises operate according to market principles On the afternoon of November 29, according to the program of the 8th Session, the National Assembly worked in the hall, discussing the draft Law on Management and Investment of State Capital in Enterprises. Speaking to clarify the issues raised by National Assembly deputies at the meeting, new Minister of Finance Nguyen Van Thang said: The goal of promulgating this law is to improve the effectiveness of state capital investment management so that enterprises can truly play the role of an investor, an owner with equal rights, obligations and responsibilities to enterprises. Mr. Thang affirmed that the promulgation of a separate law on management and investment of state capital in enterprises is in accordance with international practices, ending intervention in enterprises by administrative orders or integrating state management into investment and business activities of enterprises, as well as preserving the capital of enterprises. "We ensure that enterprises must operate according to market principles. I think these are fundamental, consistent and comprehensively innovative contents in the method of law-making this time," the new Minister of Finance stated.

View of the National Assembly session, afternoon of November 29. (Photo: DUY LINH)

Responding to the delegates' opinions on the view that representatives of state capital at enterprises need to explain strategies and plans to the representative agencies and ownership agencies of state-owned enterprises during their operations, Minister Thang said that this is an issue that needs further study. "If it has to be presented, it must be specifically stated what it is and the content of the strategy that needs to be reported must be very specific. If it is not clear, it will create unnecessary barriers," said Mr. Thang. According to the new Minister of Finance, in the past, we had regulations that enterprises had to report to representative agencies, but now we have regulations that representatives have to report to the capital ownership agency because we think that the issue is important, needs to be discussed and even has to be presented to superior agencies. Doing so is "throwing mud into the pond," he analyzed, while emphasizing that this issue needs to be studied to have a direction. If it is regulated to report on strategies and plans, it must be very concise and very specific, otherwise there will be other barriers. There must be a mechanism for public and transparent management and capacity assessment.

Minister of Finance Nguyen Van Thang spoke to clarify issues raised by National Assembly deputies at the meeting. (Photo: DUY LINH)

Regarding the role of state capital representatives in enterprises, the Minister of Finance affirmed that they play an important role, deciding the business performance of enterprises as well as the preservation and development of capital in enterprises. "If we open up a mechanism, the representative of capital with over 50% will be the leader of the enterprise, so this person will be the one who decides the success", Minister Thang said and emphasized the need to have a mechanism to manage and evaluate the capacity of capital representatives and heads of state-owned enterprises publicly and transparently like the mechanism of private enterprises. "We have a mechanism to manage and evaluate them, but at the same time, we must have a corresponding treatment regime, especially we must give them tools", Minister Thang said. The new Minister of Finance pointed out that in reality, we have a very strict mechanism to evaluate capital representatives and heads of enterprises, they work very hard to perform their tasks but in return, their salaries and bonuses must follow a scale and level. Thus, it will be very difficult to have talented people, and even if there are talented people, it will be difficult for them to fulfill their responsibilities, the new Minister of Finance analyzed. According to Mr. Thang, management needs to be very objective and transparent, just like private enterprises clearly set out the issue of operational efficiency such as revenue and profit. If they meet the set targets, there must also be a very clear reward mechanism. "If they do well, what is the salary and bonus? If they exceed the target, will the salary and bonus be increased? And if they cannot do it, what level is a warning, what level is... dismissal", Minister Thang frankly raised the issue. He emphasized that it must be "fair", because private enterprises have full power for leaders, so state-owned enterprises must also apply the same mechanism to make a difference. According to Mr. Thang, the story about representatives must be done very openly and transparently, because up to now, the most difficult thing is the salary and bonus regime for representatives of state capital in enterprises.

Nhandan.vn

Source: https://nhandan.vn/yeu-cau-lam-ro-co-che-thuong-sa-thai-nguoi-dai-dien-von-tai-doanh-nghiep-nha-nuoc-post847720.html