State-owned enterprises always accompany and play an important role in the economy

Addressing the Prime Minister’s Conference with state enterprisesPrime Minister Pham Minh Chinh pointed out, it is very important to identify bottlenecks in mechanisms and policies for this business sector, obstacles and limitations in enterprises themselves in order to provide orientations and solutions. measures to innovate and improve operational efficiency in order to mobilize resources of state-owned enterprises in socio-economic development in the coming time.

Today (March 24), Prime Minister Pham Minh Chinh chaired a nationwide online conference with state-owned enterprises (SOEs) on “Continuing innovating and improving operational efficiency to mobilize resources of enterprises”. State in socio-economic development”.

Attending the Conference were the Deputy Prime Ministers: Le Minh Khai, Le Van Thanh.

The conference also had the participation of leaders of ministries, branches, agencies and 63 localities; Central Economic Committee; Office of the Party Central Committee; Committees of the National Assembly: Economy, Finance – Budget, Law; State Audit; Party Committee of Central Enterprise Block; Steering Committee for Innovation and Enterprise Development; Chairman of People’s Committees of provinces and cities together with Chairman of the Board of Directors, General Director of more than 40 corporations, State corporations, state enterprises.

SOEs always accompany and play an important role in the economy

Opening the conference, Prime Minister Pham Minh Chinh stated that today’s conference has an important meaning, taking place in the context that the country is implementing the economic recovery program according to the resolutions of the Party, the National Assembly and the Government. government. We have been effectively implementing the motto “Safely adapting, flexibly, effectively controlling the COVID-19 epidemic”, creating a foundation for fast recovery and sustainable socio-economic development.

The Prime Minister emphasized that renewing and improving the operational efficiency of SOEs is of great interest to the Party and State and has been identified as one of the key tasks of all levels and sectors in implementing the resolutions of the State. Party, National Assembly, Government, localities and state-owned enterprises.

“We determine that SOEs hold a key position and are an important material force of the state economy, making an important contribution to stabilizing the macro-economy and promoting socio-economic development,” the Prime Minister said.

With the guiding viewpoints throughout the Party, especially in the more than 35 years of renovation and transition to developing a socialist-oriented market economy in our country, the business community in general and SOEs in particular have made great efforts. unceasing efforts, overcoming many difficulties and challenges, continuing to strive to make an important contribution to the cause of national construction and defense, so that “the country has never had the opportunity, potential, position position and prestige as it is today” that Comrade General Secretary Nguyen Phu Trong reported at the 13th Party Congress recently.

In the process of national construction and defense, SOEs always accompany and play an important role in the economy. Especially, in the period of renovation and development of a socialist-oriented market economy with a multi-sector economy, SOEs have always maintained an important, pivotal role and are an important material force of the state economy. contribute to promoting economic development and realizing social progress and justice.

However, the SOE sector has not yet demonstrated its position well, and has not been able to promote its advantages of holding resources in carrying out its mission.

Prime Minister Pham Minh Chinh: SOEs hold a key position and are an important material force of the state economy, making an important contribution to stabilizing the macro-economy and promoting socio-economic development. (Photo VGP/Nhat Bac)

It is very important to identify the bottlenecks

In order to promote state-owned enterprises to develop sustainably and promote their strengths and potentials, which are really “an important material force of the state economy”, the Prime Minister pointed out, “it is very important to identify bottlenecks in mechanisms and policies for this business sector, obstacles and limitations in the enterprises themselves, thereby providing innovative orientations and solutions, improving operational efficiency in order to mobilize resources of state-owned enterprises in socio-economic development in the coming time”.

Suggesting discussion topics, the Prime Minister asked the question: Why have SOEs not yet played a prominent role in leading, motivating, paving the way, guiding, attracting and promoting other stakeholders? develop. Why is the production and business efficiency of many SOEs still low compared to the resources they hold? Why is there such a situation, what is the cause, subjective and objective like? By mechanism, policy or organization or by people? Is it because businesses have not focused on investing in developing their main industries or for other reasons?

Delegates attended the conference at the Hanoi bridge point. (Photo VGP/Nhat Bac)

Has the State management role of state ownership representative agencies been good, what are the problems? What is the model of the Committee for the Management of State Capital at Enterprises in order to promote the production and business efficiency of State-owned enterprises?

Why did the equitization and divestment of state capital fail to meet the plan, what problems, and what types of businesses should divest? Is the determination of the value of land use rights, advantages of land lease rights, the brand value of the enterprise… is it complete and strict? Why has it not been done in the past time, so that people and society can have opinions related to this field?

Asking the question that the governance of SOEs has been slow to innovate, has not kept pace with the scale of assets managed by enterprises, the Prime Minister stated that the reality shows that, with the same guidelines, mechanisms and policies, there are places. good performance, some places are delayed, some places can’t work, some places push the responsibility… “So what is the cause, is it because of the head of that organization? Or is it because of the mechanism, the government itself? policy or coordination between ministries, branches or direction? In the case of weak problems, we must try to find the cause to have an appropriate solution.”

“What is the organizational model and leadership method of Party organizations in SOEs, especially in equitized enterprises to promote the role of Party organizations in these enterprises?”.

The Prime Minister also noted that, in the international and domestic context with many unpredictable fluctuations, the COVID-19 pandemic cannot end overnight. governance, the implementation of the commitments of the new generation FTAs, the rapid development of the industrial revolution 4.0, the commitments to environmental protection, response to climate change, etc. have many impacts on energy. business productivity, competitiveness and sustainable development, survival of the business community in general and SOEs in particular. Therefore, the Prime Minister asked the delegates to discuss and come up with very specific plans, tasks and solutions for each ministry, sector and locality, each group, corporation, and SOE to have awareness. right, appropriate solutions and act decisively and effectively.

Immediately after today’s conference, the Government will issue a Government Resolution with tasks and solutions to promote innovation, improve efficiency in order to mobilize resources of SOEs in socio-economic development.

Minister of Planning and Investment Nguyen Chi Dung: Although accounting for only 0.08%, SOEs contribute 28% of total taxes and other payables to the state budget, contributing more than 29% of the country’s GDP. (VGP photo)

SOEs contribute more than 29% of GDP

According to the Ministry of Planning and Investment, by the beginning of 2021, Vietnam still has about 500 enterprises with 100% charter capital held by the State and nearly 200 enterprises in which the State holds a controlling stake.

Currently, if excluding defense, security and agro-forestry enterprises, there are only 94 large-scale SOEs, including: 09 economic groups; 67 state-owned corporations, 18 companies operating under the model of parent company-subsidiary group.

Only enterprises with 100% state capital are holding, although accounting for only a small proportion of the economy (about 0.08% of enterprises operating as of December 31, 2020), but holding major resource of the economy (about 7% of total assets and 10% of equity of the entire enterprise in the market, accounting for about 25.78% of total production and business capital and 23.4% of value fixed assets and long-term financial investments of operating enterprises with production and business results).

The average asset size of a SOE is VND 6,095 billion, 18 times higher than that of a foreign-invested enterprise and 139 times that of a private enterprise. Many SOEs have built reputable brands of products, goods and services with great influence in the region and the world in many fields such as telecommunications services, transportation services, seaports and logistics. …

The average pre-tax profit-to-equity ratio for the whole period 2016 – 2020 is 10.46%; The average pre-tax profit to total assets ratio for the whole period 2016 – 2020 is 4.87%, higher than non-state enterprises (1.26%).

Although accounting for only a very small percentage (0.08%), SOEs contribute 28% of the total tax and other payables to the state budget.

In terms of labor efficiency, SOEs attract about 0.7 million employees, accounting for about 7.3% of the entire enterprise sector. The average monthly income of an employee at SOEs in 2020 will reach about 20 million VND.

Vietnam’s SOEs are holding huge market shares in a number of fields such as energy, telecommunications, banking, etc., contributing more than 29% of the country’s GDP, a report by the Ministry of Planning and Investment said.

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