State-owned enterprises to play a leading role in the economy

DNHN - The Government Office has just issued Notice No. 127/TB-VPCP dated March 23, 2024, concluding the meeting of the Standing Government with leading state-owned enterprises nationwide.

The Notice states that the Government always accompanies businesses, including state-owned enterprises (SOEs); focuses on developing SOEs quickly, sustainably, and in the right direction, contributing to the Party’s policy that the state economy plays a leading role in the economy, and SOEs play a pioneering and core role.

SOEs continue to hold large resources in terms of capital, assets, technology, and high-quality human resources, making significant contributions to the state budget, creating jobs for workers, actively participating in social security work, contributing to macroeconomic stability, controlling inflation, and ensuring the overall balance of the economy. In 2023, despite facing many difficulties, the business results and contributions of SOEs to socio-economic development are noteworthy: Total revenue is about 1.65 million billion VND, exceeding the plan by 4%, pre-tax profit is about 125.8 thousand billion VND, exceeding the annual plan by 8%, contributing to the state budget is estimated at 166 thousand billion VND, exceeding the annual plan by 8%; contributing about 28% of the state budget revenue, solving about 0.7 million jobs…

However, besides the achieved results, there are still loss-making enterprises that have not met the production and business plan targets; some economic groups and corporations have negative profits, including large-scale enterprises with important roles; the efficiency of operation and investment is not commensurate with the resources allocated.

Continue to improve the operational efficiency and competitiveness of state-owned enterprises

The Prime Minister requests that ministries, branches, agencies, People’s Committees of provinces and centrally-run cities, and representative agencies of owners and SOEs thoroughly grasp and implement Directive No. 07/CT-TTg dated February 22, 2024 of the Prime Minister on renewing governance, improving production and business efficiency, and strongly promoting investment and development of economic groups, state-owned corporations, SOEs, and other relevant instructions and conclusions; focusing on the following contents:

Promoting the core, leading, and pioneering role of SOEs in the economy; SOEs need to be the pioneers, leading in innovation, renewing the governance model, restructuring capital sources, restructuring production and supply chains… towards modernity, in line with international practices, digital transformation, science and technology, and emerging industries.

Continuing to improve the operational efficiency and competitiveness of SOEs in the direction of improving quality, specifically researching and cooperating to implement some energy projects, and new technologies following the global shift trend, focusing on renewing traditional growth drivers (investment, export, consumption), while promoting new drivers such as digital transformation, green transition, circular economy, knowledge economy, sharing economy, and climate change response.

Promoting the role of the State Capital Investment Corporation (SCIC), including paying attention to using capital sources for investment and development.

Local ministries and branches create conditions and opportunities for businesses to develop

The Prime Minister requests that ministries, branches, agencies, People’s Committees of provinces and centrally-run cities, and representative agencies of owners: Be positive, proactive, and responsible in assisting businesses according to their functions, tasks, and powers; create conditions and opportunities for businesses to develop, “do not wait for businesses to ask or complain before acting”, effectively coordinate with businesses to remove difficulties, overcome challenges, promote strengths, limit weaknesses, progress together, keep up, and rise, and accelerate development.

People’s Committees of provinces and centrally-run cities actively promote good models such as Becamex IDC Corporation; contribute to building institutions and supervision mechanisms to ensure the healthy and effective operation of SOEs, build a team of cadres, and restructure weak enterprises.

In the third quarter of 2024, the Ministry of Planning and Investment shall preside over and coordinate with relevant agencies to study and propose to the Prime Minister to assign a focal agency to monitor, and synthesise the production, business, and investment development situation of SOEs to serve the purpose of state management of SOEs; at the same time, promote the role of the Steering Committee for Business Innovation and Development.

The State Capital Management Committee at enterprises shall be more proactive and active in its activities according to its assigned functions and tasks; based on summarising the Committee’s model, it shall actively coordinate with relevant agencies to propose completing regulations related to the functions, tasks, powers of the Committee, and related laws.

Khanh Linh