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Vietnam’s SOEs reluctant to disclose business information

Vietnam’s SOEs reluctant to disclose business information

Friday 10, 04 2020
Currently, nearly 30% of state-owned enterprises are not serious in disclosing business information according to regulations.

Large state-owned corporations are slow in disclose information

According to the Ministry of Planning and Investment, by the end of 2019, there had been 374 out of 529 enterprises (excluding enterprises under the Ministry of Defense and the Ministry of Public Security) submitting reports to the Ministry of Planning and Investment to publish their business information on the National Business Registration Portal.

This figure is slightly lower than the rate of 71.67% of state-owned enterprises that made information disclosure in 2018, showing that the transparency in information on production, business and financial health. ... of state-owned enterprises has not been improved.

The majority of the 155 enterprises (equivalent to 29.31%) that have not yet disclosed information are companies operating in the field of irrigation, agro-forestry, and lotteries located in Bac Giang, Can Tho, Dak Nong, Dak Lak, Gia Lai, Quang Ninh, Ha Nam, Khanh Hoa, Thai Nguyen, Quang Binh and Yen Bai.

Vietnam’s SOEs reluctant to disclose business information

Notably, some large enterprises such as Shipbuilding Industry Corporation, State Capital Investment Corporation, Vietnam Paper Corporation, Housing And Urban Development Holdings Corporation Limited, enterprises under the Ministry of Culture, Sports and Tourism, the Ministry of Natural Resources and Environment and the Ministry of Defense, etc. have not sent full reports to the Ministry of Planning and Investment for information disclosure in accordance with the provisions of Decree No. 81/2015 / ND-CP.

Some subsidiaries wholly owned by large enterprises such as Vietnam Oil and Gas Group (2 enterprises), Vietnam National Chemical Group (2 enterprises), Vietnam National Coal And Mineral Industries Holding Corporation Limited (3 enterprises), State Capital Investment Corporation (3 enterprises), Vietnam National Coffee Corporation (6 enterprises), Vietnam Air Traffic Management Corporation - Company Limited (1 enterprise), Vietnam Northern Food Corporation Ltd (2 enterprises) have not yet made a full disclosure of information according to the provisions of Decree No. 81/2015 / ND-CP. Remarkably, a number of businesses have been reluctant to disclose information for 3 consecutive years.

For enterprises under the Ministry of Defense and the Ministry of Public Security, the Government's Decree No. 93/2015 / ND-CP on management and operation of defense and security enterprises regulates that before June 20 every year, defense and security enterprises must publish their information on names, history of operations, major economic indicators, reorganization plans, business renewal, etc. on the website of the company, the representative agency and the Ministry of Planning and Investment.

However, these enterprises have not done information disclosure to date, excluding Dong Bac Corporation.

Limitations in the transparency of business information in SOEs

Assessing the situation of information disclosure by state-owned enterprises, the Ministry of Planning and Investment said that the rate of enterprises making information disclosure during 4 years of implementing Decree No. 81/2015 / ND -CP has increased significantly. In particular, in 2016, the rate was only about 38%; it reached more than 44% in 2017 and more than 70% in 2018 while the figure for 2019 was 70.32%.

However, there are still many shortcomings in the transparency of business information in these enterprises. Although the rate of enterprises publicly announcing information has increased year by year, there are still ministries, localities and corporations that have not disclosed information according to regulations. In particular, in some localities, most businesses have not yet disclosed any information.

In some corporations which are level 2 enterprises under state corporations and groups, the information disclosure has not really been paid much attention. Abnormal business information on corporate governance, remuneration for the board of directors, the executive board, the company control board, audit and non-audit costs, etc. is disclosed in a sketchy manner and later than requested.

Most of the enterprises subject to business information disclosure have not fully implemented the regulations on information disclosure by failing to fully report the contents as prescribed, having no website and not developing a separate column for information disclosure according to regulations.

The fact that SOEs do not disclose information or fail to disclose sufficient information indicates that there are three possibilities. Firstly, businesses are making losses so they need to hide as much information as possible.

​The second possibility is that the attitude of considering SOEs as a "generic" product, so no one will be punished from not disclosing information. The third possibility that SOEs do not seriously report information is that the managing agencies and owner representatives do not "like" to monitor and urge SOEs to do what they have to do.

Source: tinnhanhchungkhoan

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