“Untie”, creating a strong motivation for state-owned enterprises to develop

Speaking at the Prime Minister’s National Online Conference with state enterprises (SOE) on March 24, Minister of Planning and Investment (MPI) Nguyen Chi Dung said that it is necessary to continue to complete synchronously the laws, mechanisms and policies to ensure efficiency and effectiveness to remove difficulties. for SOEs, in order to promote their advantages, overcome limitations, and realize the role and position of SOEs in the economy.

State-owned enterprises pay taxes and state budget 43 times more than foreign-invested enterprises

Minister of Planning and Investment Nguyen Chi Dung. (Photo: VGP/Doan Bac)

During the past 5 years, the National Assembly, the Government and the Prime Minister have promulgated quite fully and synchronously mechanisms and policies to regulate the operation of SOEs, creating a legal framework for SOEs to organize and implement. business activities and achieved some important results.

In terms of business efficiency, the average pre-tax profit-to-equity ratio for the whole 2016-2020 period of SOEs is 10.46%. The average pre-tax profit to total assets ratio is 4.87%, higher than that of domestic private enterprises at 1.26%.

Notably, the average tax and payable amount of SOEs is 576 billion VND, 43 times higher than FDI enterprises and 14 times higher than private enterprises.

In addition, SOEs also play a dominant role in a number of important industries and fields such as oil and gas, electricity, finance, banking, telecommunications, transport infrastructure, and production and supply of some raw materials. basic input materials for the economy.

Minister Nguyen Chi Dung emphasized that investment activities of SOEs in key and important sectors, fields and areas of the economy have helped reduce the burden from the state budget in the implementation of investment projects. important infrastructure, thereby, contributing to the process of economic restructuring associated with the renewal of the growth model.

SOEs’ contributions are not commensurate with their potential

Despite achieving some of the above important results, the activities and contributions of the SOE sector in recent years have not been commensurate with their potential, especially the resources they hold and the dominant market.

Groups and corporations have basically failed to fulfill their role of leading and motivating the economy and the competitiveness, application of science, technology and innovation of large-scale SOEs. still limited, not meeting the requirements of being the core force of the state economy.

In addition, the implementation of new investment projects of SOEs in recent years has not been promoted. The comprehensive restructuring of new SOEs mainly focuses on reorganization, equitization and divestment to have a more reasonable structure, but has not focused on implementing breakthrough orientations and solutions in science and technology and innovation. innovation, high-quality human resources and a viable long-term business strategy.

Some SOEs lack a strategic vision to develop their businesses, especially participating in global value chains and reaching out to the world.

What should be done to improve the performance of SOEs?

Through monitoring and studying the actual operation of SOEs in recent years, Minister Nguyen Chi Dung stated the shortcomings and limitations stemming from 5 basic reasons such as: inadequacies in the legal system on SOEs; not really decentralizing, giving autonomy to SOEs in business investment, administration and management; regulations on salary and other remuneration regimes for SOE managers are not suitable with the actual operation of enterprises; State management of SOEs is still unclear.

From that reality, as well as in the context that the Government is continuing to make efforts to develop solutions to promote business activities, the MPI proposes a number of orientations to improve the operational efficiency of SOEs.

Firstly, the key task in the coming period is to increase investment, increase innovation and apply science and technology, improve operational efficiency so that SOEs can fulfill their position and role of paving the way and leading; together with the domestic private sector to build an independent, self-reliant and resilient economy towards the goal of becoming a powerful and prosperous country by 2045 as determined by the 13th National Congress.

Secondly, it is necessary to associate the development of SOEs with the implementation of the development strategy of sectors and fields of the economy. Clearly identify key industries and fields that need the presence of SOEs in line with the country’s sustainable development orientation (such as renewable energy, high-tech industry, important national infrastructure …).

Third, it is necessary to change awareness and views on equitization and divestment of state investment in enterprises. The goal of equitization and divestment is not to withdraw state capital from SOEs, narrowing the scope and scale of the SOE sector, but to restructure the investment portfolio to improve quality and efficiency. and the investment value of the State in enterprises in general and of each SOE in particular.

Fourth, build and develop a synchronous national database system on SOEs and State assets for assessment, monitoring and supervision; Thereby, having appropriate orientation to improve production and business efficiency of SOEs.

Fifth, ministries, branches and localities, especially the Committee for the Management of State Capital at Enterprises, need to change the way they work, proactively implement fully and effectively the owner’s rights at enterprises. in accordance with international laws and practices; does not interfere in the business administration and management process at the enterprise.

Sixth, to improve the state management of state-owned enterprises by assigning a ministry to act as the focal point for state management to supervise the operation of the owner’s representative agency, develop orientation develop and improve the operational efficiency of state-owned enterprises.

Along with that is to build a monitoring mechanism and improve the effectiveness of supervision by different methods; study the salary mechanism and policy associated with labor productivity and production and business efficiency of enterprises, especially for senior management of enterprises.

Minister Nguyen Chi Dung especially noted the need to continue to complete synchronously the laws, mechanisms and policies to ensure efficiency and effectiveness in order to promote the advantages and overcome the limitations of the SOE sector.

“The SOE sector always has a very important meaning for the development of the country in each period and each Party Congress. I hope, after this conference, the Government and Prime Minister will have a important and fundamental decisions to be able to “untie”, create strong motivation, and free up resources so that SOEs can contribute more to the cause of national construction and development in the new period. “, the Minister of Planning and Investment shared.

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