Business
Abject failure on state enterprise financial transparency
  • By Nguyen Tuyen | dtinews.vn | October 05, 2016 03:06 PM

Many state-owned firms are being slow or avoiding their responsibility to publish their business results.

 

Only a few firms have published their business results

According to the Ministry of Planning and Investment, member companies of state-owned corporations, where the state holds 100% of charter capital, must publish their financial reports to ensure transparency.

However, as of September 20, out of 432 firms, only the Vietnam Air Traffic Management Corporation fully complied with Decree 81, issued in September 2015, about the disclosure of information by state-owned enterprises.

All firms were required to file reports with the Ministry of Planning and Investment within six months after the decree took effect, but only a few had done so. 140 firms only filed information in one or two of the eight required categories of information.

12% of firms issued assessment reports on the results of annual production and business plans and results over the previous three years, 8% reported on the performance of their public duties and social responsibilities and only 14% submitted 2015 financial reports.

By the end of July, seven out of 22 ministries and departments and 24 out of 63 cities and provinces and 16 out of 31 major corporations submitted reports.

Vietnam Railways Corporation, Vietnam Northern Food Corporation (Vinafood 1), MobiFone, and the Housing and Urban Development Corporation failed to submit their 2015 financial reports.

The Ministry of Planning and Investment concluded that the number of firms that had followed the regulations were low and the quality of the contents sparse.

The management of the firms and agencies may face reprimands or warnings for their failures. Chairs or state representatives will have their salaries cut, be fired or face criminal charges if they fail to carry out their tasks or their actions lead to financial losses.

Leave your comment on this story