Commission for Management of State Capital at Enterprises dissolved
VGP – The Government has decided to dissolve the Commission for Management of State Capital at Enterprises (CMSC).
The decision takes effect on March 21, 2025.
CMSC, established in 2018, was responsible for overseeing the operation of 19 State-owned enterprises and corporations. These companies have been transferred to the Ministry of Finance and other ministries.
The total equity of the 19 corporations and State-owned enterprises has reached VND1.18 trillion (US$46.5 million), up 11 per cent while their total assets have reached VND 2.54 trillion, an increase of 5 percent from 2018.
The dissolution of the CMSC is part of Viet Nam's overall plan to streamline and rearrange the political system's apparatus to increase operational efficiency and to save budget for development investment.
Following the overhaul of the Party's agencies and the Cabinet ministries and agencies, Viet Nam is preparing for merging localities in order to create new development space and bring into full play of unique advantages of each locality.
Local administrations will be reorganized into two levels (provincial and grassroots levels) instead of current three levels (provincial, district and communal levels), to create a two-tier local governance to ensure streamlined, efficient and effective operations.
With this plan, the number of provinces and centrally-run cities will reduce by about 50 percent while the number of grassroots-level administrative units will reduce by 60-70 percent.
At present, Viet Nam is devided into 63 provinces and centrally-run cities with 705 districts and 10,595 communes/wards.
The draft plan will be submitted to the Politburo and the Secretariat prior to March 27, 2025 and to the Party Central Committee before April 7, 2025 for consideration and approval.
