Seminar “The state-owned economy should take the lead and pave the way into the new era” – Photo: VGP
Focus on leading, don’t get bogged down.
Dr. Nguyen Nhu Quynh, Director of the Institute for Economic Strategy and Policy (Ministry of Finance), emphasized at the seminar “The state-owned economy as a pioneer in the new era” that Resolution 79 further reaffirms the leadership role of the state-owned economy enshrined in the Constitution and party congresses. What is new, however, is that this role is formulated more comprehensively, clearly and specifically.
A key aspect is the concentration of investment resources on building a number of large state-owned companies that play a leading role in key strategic sectors. In addition, the resolution encourages state-owned enterprises to invest abroad in areas where they have comparative advantages or where there is high market demand.
According to Resolution 79, the direction for restructuring state investments and enterprises towards professionalization and the creation of a national investment fund model is clearly set. In addition, the development of several important public service units with international competitiveness is highlighted, as well as the development of new areas of development such as the space economy, the aerospace industry and high-tech areas in which the private sector is not yet qualified.
Dr. Nguyen Nhu Quynh, Director of the Institute for Economic Strategy and Policy (Ministry of Finance), shared information – Photo: VGP
This approach fundamentally changes the role of state-owned companies. While they have previously played a leading role in a variety of sectors, they are now concentrating on a few key strategic industries and sectors and playing a pioneering role in development. Therefore, both state administrative authorities and the state-owned enterprises themselves must adapt their management, investment and development understanding to these new requirements.
Mr. Doan Thanh Tuan, deputy director of the Department of State-Owned Enterprises Development (Ministry of Finance), emphasized that state-owned enterprises need to play the role of “seed capital provider” and activate and direct investment resources from across society. Mr. Doan Thanh Tuan explained that Resolution 79 sets specific and ambitious targets for the state-owned enterprise sector. By 2030, about 50 large state-owned companies are expected to be among the region’s 500 largest companies, including one to three companies in the top 500 worldwide.
National investor orientation
Mr. Le Thanh Tuan, deputy director general of the State Capital Investment and Economic Corporation (SCIC), said Resolution 79 is a special milestone as the term “national investment fund” was clearly defined for the first time in a Politburo resolution. With its new positioning as a national investor, SCIC is developing a new strategy with a focus on innovation, technology and digital transformation.
After 20 years, SCIC has contributed approximately VND114 trillion to the national budget and has an investment portfolio of over 100 companies with a market value of approximately $8 billion. However, according to Mr Le Thanh Tuan, the current model also has weaknesses and needs a fundamental transformation. Therefore, in the future, the assessment of effectiveness should not only be based on sales and profits, but also on the increase in net assets, analogous to the practices of international sovereign wealth funds.
From an economic policy perspective, Professor Hoang Van Cuong argues that Resolutions 79 and 68 on private sector development are not in conflict with each other, but rather require a clear delineation of the roles of both sectors. Accordingly, the private sector plays a decisive driving force, while the state sector plays a leading and pioneering role, thus enabling the harmonious development of the entire economy.
“The action plan of Resolution 79 must clearly define the way forward. The state must set the framework for the public and private sectors. In some key areas, such as aviation and shipping in the context of sovereignty and security, the state must maintain control. However, in other areas, such as the energy sector, the private sector is also involved and the state must clearly define the roles of each sector. Within the public sector itself, the tasks of each company must be clearly defined and investment capital must be concentrated. Investment distribution must be strategic Follow the implementation plan to avoid needing investment funds for everything,” emphasized Professor Hoang Van Cuong.
Herr Minh
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