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State firms take the lead in national economic development

Update: March, 29/2021 - 08:26

 

Lê Mạnh Hùng, Director General for the Enterprises Development Agency

Lê Mạnh Hùng, Director General for the Enterprises Development Agency, under the Ministry of Planning and Investment talks to bnews.vn on the Government’s proposal to conduct a study on the development of large State-owned enterprises

How do we define a large enterprise in Việt Nam?

We have come up with five criteria for any State enterprise wanting to be called a large enterprise in Việt Nam. These criteria are: size, market, management, operation field and the percentage of capital that the State will hold.

Regarding the scope of the enterprise, if the State enterprise wants to take a lead in the field, it must have strong financial capital and business operations. In addition, that enterprise must have big total assets or a stable financial operation report. Adding to that the enterprise must lead in applying advanced science and technology in its operation.

Regarding the market both inside and outside Việt Nam, a large-scale State enterprise should have a good vision for expanding its operation abroad.

In the management field, a State enterprise needs to have a strong and professional management system like that of the Organisation of Economic Co-operation and Development.

Which State-owned enterprises can take the lead in national economic development?

To develop this proposal, we have conducted a big study on State enterprises nationwide from 2017 to 2019. Through that study, we have come up with a conclusion that Vietnamese enterprises operating in the model of parent companies account for just 15 per cent of the country’s enterprises. However, they own up to 92 per cent of the total assets of all Vietnamese enterprises. Their business operation is mainly in the fields of agriculture, energy, finance and banking, telecommunications, infrastructure and the processing and manufacturing industry. That’s why in our study we have tried to come up with common points of view on development strategy and operation orientation for about 20 economic groups and corporations in the fields of agriculture, energy, finance and banking, telecommunications, agriculture, technical infrastructure and the processing and manufacturing industry.

The next step we do is to analyse the real situation of each State enterprise in different fields. For the following step, we decided to select just four fields that we think have a strong influence on national economic development.

What is the Ministry of Planning and Investment’s point of view on the role played by small and medium-sized private enterprises in the national economy?

If Việt Nam wants to develop a strong and self-reliant economy, it needs strong support both from the public and private enterprises. State enterprises have a long history of operation and development. What’s more important they have gained good prestige both inside and outside Việt Nam. However, large-scale State enterprises should take the lead in the course of innovation, particularly in the present era of digitalisation.

The Ministry of Planning and Investment has written a report on large and medium-sized Vietnamese enterprises’ competitiveness in the national economy. Through this report, the Government has made the right decision to focus more efforts on the development of large and medium enterprises as they are the main driving force for the country to become a strong and prosperous nation by the year 2045­. — VNS

 

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