Some Points to Know About the State Capital Management Committee

To be specific, Decree 131 stipulates that the Commission for the Management of State Capital at Enterprises is an agency under the Government of Vietnam (hereinafter referred to as the Commission); assigned by the Government of Vietnam to exercise the rights and responsibilities of the state owner representative for enterprises in which the State holds 100% of charter capital, and for the state capital invested in joint-stock companies, limited liability companies with two or more members as provided by law.

The Commission for the Management of State Capital at Enterprises has the English trade name Commission for the Management of State Capital at Enterprises, abbreviated as CMSC.

The Commission is a level I budgetary unit of the central budget.

According to Decree 131, the relationship between the Commission and other state management agencies is stipulated as follows:

- The Commission exercises the rights and responsibilities of the owner representative agency for enterprises in accordance with the law on the management and use of state capital invested in production and business in enterprises; complies with regulations on enterprise financial management policies, and the financial supervision mechanism over enterprises for which the Commission acts as the owner representative.- The Commission, along with enterprises for which it acts as the owner representative, invests, manages, and uses state capital in line with the national development strategy, plan, and policy as decided by competent authorities.- The Commission cooperates with relevant agencies in placing orders and assigning tasks to enterprises to perform public service tasks or other socio-economic tasks as stipulated by law.

Concurrently, the Commission has the responsibility to:

- Take responsibility before the Government of Vietnam, the Prime Minister of the Government of Vietnam, and the law for the effective use, preservation, and increase of the total value of the state capital portfolio invested in the enterprises under its management. Comply with legal regulations on investment, management, and use of state capital in enterprises.- Not directly interfere in the production and business activities of enterprises, the management, and administration activities of enterprise managers; not decide on matters within the lawful authority of the Board of Members, the Chairman of the Company, the Shareholders' General Meeting, the Board of Directors, the General Director, the Director of the enterprise as prescribed by law and the enterprise's charter.- Ensure transparency and openness in the investment, management, and use of state capital in enterprises for which it acts as the owner representative. Publicize information on investment, management, and use of state capital in enterprises under its representation in accordance with the law.- Report policies to the Government of Vietnam, the Prime Minister of the Government of Vietnam periodically as required by law or unexpectedly regarding the execution of assigned tasks.- Prepare and submit reports to competent state authorities for supervision, inspection, and audit concerning its performance of assigned objectives, functions, duties, and powers; execute supervision, inspection, and audit activities as stipulated by law.- Organize information and propaganda activities on state policies and laws within its assigned functions and duties.- Explain to competent authorities about the investment, management, and use of state capital in enterprises under its representation as assigned by the Government of Vietnam, the Prime Minister of the Government of Vietnam.- Discharge other responsibilities as assigned by the Government of Vietnam, the Prime Minister of the Government of Vietnam, and as stipulated by law.

See details in Decree 131/2018/ND-CP effective from September 29, 2018.

- Thao Uyen -

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