Prime Minister underlines crucial role of State-owned enterprises to economy

July 13, 2022 - 07:35
SOEs maintain a core and leading role in the socialist-oriented market economy, contributing to building an independent and self-reliant economy.
Prime Minister Phạm Minh Chính speaking at the event. VNA/VNS Photo Dương Giang

HÀ NỘI — During a meeting with the Party Committee of the Central Business Bloc (CBB) yesterday, Prime Minister Phạm Minh Chính said the state-owned enterprise (SOE) sector is an important force for the country’s economy, urging further restructuring to enhance their efficiency

The Deputy Prime Ministers, Lê Minh Khái, Vũ Đức Đam and Lê Văn Thành, as well as other ministers and leaders, also attended the meeting. 

Speaking at the event, PM Chính affirmed that the state-owned enterprise sector is an important force in the country’s economy. SOEs contribute significantly to socio-economic development, national defence and social security while performing political tasks assigned by the Party and the Government. They play a pivotal role in several industries and fields and generate a significant source of revenue for the state budget. 

SOEs maintain a core and leading role in the socialist-oriented market economy, contributing to building an independent and self-reliant economy. During the COVID-19 pandemic, the role of the state-owned enterprise bloc has been promoted and clearly shown. 

As well as appreciating and praising the contributions of the CBB on its achievements, the PM also pointed out the shortcomings and limitations of SOEs. The CBB must solve issues such as roles in leading, motivating and promoting other economic sectors. 

The SOEs’ performance has not yet been reflected in all resources it holds. There is still low efficiency in production, business enterprises and projects with prolonged losses, while equitisation and divestment activities in these companies are still behind schedule. In addition, corporate governance innovation is not in line with market requirements.

PM Chính suggested several key tasks that the CBB needs to complete. They should continue innovating and effectively implement the Party's leadership methods and principles of organisation and leadership in SOEs; closely cooperate with the Government Personnel Committee and relevant ministries to finalise the institutions, mechanisms and policies that are suitable for the new situation and conditions.

The PM also proposed to promote the restructuring, reorganisation, innovation, development and efficiency improvement of SOEs following the resolutions of the Party, the National Assembly, the Government and the direction of the Prime Minister. He said that the rearrangement and transformation of ownership of SOEs must be completed. 

“SOEs have to make a great contribution to building an independent, self-reliant, proactive economy, which actively integrates and helps stabilise the macro-economy, control inflation, and ensure balances in the current conditions," the PM said.

The head of the Government also stressed that the CBB has to promote the leading role of SOEs in forming and expanding production, supply and value chains. SOEs have to optimise all resources of the enterprises, including capital, land, brand, tradition, and history, and strictly manage capital, state and enterprise assets following the law.

The CBB has 38 affiliated party committees, of which there are 36 state-owned economic groups, corporations, commercial banks and two party organs. 

By the end of 2021, 18 out of 61 enterprises completed equitisation, completing 29.5 per cent of the plan. There are 18 groups, corporations and banks in the CBB that equitised 57 enterprises on the list of equitisation approved by the PM. 

Regarding divestment activities, the CBB directed its members to strictly implement the PM’s decisions on approving the list of state capital portfolios to divest until the end of 2020. There are three groups and corporations performing the task of divesting state capital in 78 enterprises.

By the end of 2020, the State Capital Investment Corporation completed divestment in nine out of 45 enterprises; the remaining 31 enterprises have not completed the divestment plan.

Businesses with inefficient projects have actively analysed and assessed the current situation and developed remedial plans. They also strengthen coordination with ministries, central agencies and relevant agencies to solve problems. Until now, five projects have been removed from the list of 12 inefficient projects in the industry and trade. VNS