Business

Traders work at the trading floor of Sai Gon Securities Inc. (Photo: VNA) Hanoi (VNS/VNA) - The development of the equity market will help promote the transparency and corporate governance of listed companies, especially public companies with State capital , an official has said. The statement was made by Dang Quyet Tien , director of the finance ministry's Corporate Finance Department, during a recent seminar in Hanoi. “This will help boost the volume of transactions in the stock market, increasing the liquidity for State shareholders,” Tien said. “There is a problem that has persisted for many years in most State-owned enterprises, which is the ineffectiveness in the management and use of State capital,” he said. “The development of the equity market would help State-owned enterprises be less dependent on bank credit loans, diversifying forms of capital mobilisation.” The Vietnamese stock market has seen remarkable development since its inception, but the rate of capital mobilisation via this market was still very low, said Nguyen Tu Anh, director of the General Economic Department under the Central Economic Committee. “The diversification of products on the market is still poor, resulting in high volatility. At present, idle capital in the economy is quite large, the deposit interest rates of banks have decreased and the interest rates of Government bonds have dropped deeply, which are very favourable conditions to develop the stock market,” he said. “Over the past 20 years, Vietnam’s stock market has made great progress, promoting its role as a capital mobilisation channel for the medium and long term. However, more efforts are still needed to achieve the upcoming development goals,” said Ta Thanh Binh, Director of Securities Market Development Department under the State Securities Commission. “The status upgrade of the stock market needs efforts not only from the securities industry and the stock market regulators but also from …

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PetroVietnam's first-quarter online meeting connected different locations On April 7, 2021 PetroVietnam hosted a periodical online meeting with leaders of its member units to review production and business activities in March and the first quarter, as well as discuss operation plans in April and in the upcoming quarters. The meeting was presided over by PetroVietnam CEO Le Manh Hung, with the presence of chairman of the Members' Council Hoang Quoc Vuong, other executives of the group and leaders of related member units. Seventeen out of its 22 units have been operating profitably, among them 12 out of 17 units posted fair growth compared to similar period in 2020. The leaders heard that in the first quarter of this year, PetroVietnam outperformed all consolidated financial targets, with the group contributing more than VND19 trillion($826 million) to the state coffers, reaching 118 per cent of the quarter’s set projection and up 3 per cent on-year. 17 out of its 22 units have been operating profitably, and 12 of these 17 units posted fair growth compared to the same period in 2020. To post such positive results, the units have taken drastic cost-saving measures, helping to curtail as much as VND2.835 trillion ($123.26 million) in operating costs. In the whole first quarter, PetroVietnam has closely followed its set plans and targets in production and business activities. Other facets such as ensuring oil and gas security, participating in the building of related policies and mechanisms and the revision of the new Law on Petroleum, or cultivating business culture at the workplace have reached the set plans. All member units belonging to PetroVietnam have managed stable production and business with absolute safety. PetroVietnam chairman Hoang Quoc Vuong delivering remarks at the online meeting Delivering remarks at the online meeting, PetroVitnam chairman Hoang Quoc Vuong praised the Board of Management and member units for …

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Dang Quyet Tien, Director of the Department of Corporate Finance from the Ministry of Finance , mentions shortcomings in the current law on the investment of State capital in production and business in enterprises. (Photo: VNA) Hanoi (VNS/VNA) - The law on managing the use of State capital invested in an enterprise's manufacturing has revealed shortcomings, according to the Ministry of Finance (MoF). Dang Quyet Tien, Director of the Department of Corporate Finance from the MoF, told a workshop held between the ministry and the World Bank (WB) in Hanoi on April 7 that: “The Law No 69/2014/QH13 created a legal corridor for the investment of State capital in production and business in enterprises with incentive mechanisms and policies that have improved the country's investment, however, there are still shortcomings seen over the past five years.” Tien mentioned some problems, including different understandings on State investment in enterprises and a lack of clarity on the matter in related laws, which lead to difficulties in implementation. “It is necessary to collect comments, analyse and propose amendments and supplements to the law to continue to improve policies accordingly," he said. Proposing the content to be revised, Dr. Le Dang Doanh said the new law should define the scope of the State's investment and the field of equitisation. “Equitisation should be done carefully with strategic shareholders in the board of directors, improving corporate governance quality and solving land-related problems in equitisation," Doanh said. “State-owned enterprises (SOEs) management needs to be reformed according to market principles," he added. He said the State should still manage and supervise its capital but also avoid too much administrative intervention and human resource intervention in enterprises, adding there was a need for transparency in SOEs management according to international standards. Nguyen Thuong Lang from the National …

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