The clarification is necessary in line with the law on management and use of State capital to invest in businesses.

 

The ministry completed a draft scheme for setting up the committee, saying the committee is important to tell State capital management from State governance to help ministries and local governments concentrate on policymaking.

 

However, the Ministry of Finance and State Capital Investment Corporation have opposed the establishment of the committee, saying that State capital management will not change remarkably with the new committee.   

 

Hue told a meeting on Wednesday that the Ministry of Planning and Investment must point out the need for such a committee given expectations that the number of SOEs will fall after 2020 as the State will keep SOEs in key sectors only. He said the five functions relating to the representation of State capital in the law on management and use of State capital to invest in businesses should be made clear.

 

The committee is banned from a number of activities such as investing in SOEs, intervening in State capital management and using assets of 100%-State-owned businesses.

 

Hue told the ministry to point out operational and financial mechanisms for the would-be committee and eliminate inappropriate regulations on the representation of State capital.

 

The draft scheme will be reviewed and submitted to the Government. It will go before the Politburo later.