State-owned enterprises need to innovate to avoid falling behind.

- In Lang Son province, there are two 100% state-owned enterprises: Lang Son Lottery One Member Co., Ltd. and Lang Son Irrigation Works Exploitation One Member Co., Ltd. In recent years, these two enterprises have tried to develop production and business, but their business performance has not been as expected.

The total revenue of both businesses only reaches an average of about 120 billion VND/year (if the target set from the beginning of 2025 is completed) and the combined profit of the two businesses is only about 2.2 - 2.5 billion VND/year.

Current situation and difficulties

Lang Son Lottery One Member Co., Ltd. has the function of managing and issuing lottery in the whole province, and is a member of the Northern Lottery Council. The company is directly managing nearly 300 agents and about 30 general agents. Currently, the company is issuing 4 types of lottery (Northern traditional lottery, lotto, pair lottery, scratch lottery).

According to the company's report, business results from 2024 to present have not incurred losses, but the most important criteria, the company's revenue and budget contributions, have not increased much.

Specifically, in 2024, the company sold 5,847,000 lottery tickets of all kinds, with total net revenue reaching more than 40.8 billion VND, an increase of about 1.6 billion VND compared to 2023. Total taxes and payments to the state budget in 2024 were more than 10.6 billion VND, an increase of about 300 million VND compared to 2023.

In the first 9 months of 2025, the company sold 4,321,000 tickets, with total net revenue of more than 31.6 billion VND. It is estimated that in the whole year of 2025, revenue will reach about 41.8 billion VND, an increase of 1 billion VND compared to 2024. Pre-tax profit in 2024 will reach about 450 million VND and it is estimated that in the whole year of 2025 it will reach about 610 million VND; total taxes and payments to the state budget are more than 8.1 billion VND. It is estimated that in the whole year of 2025, about 11 billion VND will be paid in taxes, an increase of more than 400 million VND compared to 2024.

Employees of Lang Son Lottery One Member Co., Ltd. count lottery tickets before issuing them to agents.

Lang Son Irrigation Works Exploitation One Member Co., Ltd. has the main business activities of managing and exploiting the overall irrigation infrastructure assets serving irrigation, water supply for agricultural production, aquaculture (public services), domestic water supply, construction of irrigation works, civil works, pumping stations; design of irrigation works for domestic water...

The company's most important criteria are that revenue and profit from 2024 to now have shown signs of decline. Specifically, in 2024, the company's total revenue was more than 74.1 billion VND, equal to 2023, and pre-tax profit in 2024 was nearly 1.6 billion VND, equal to 2023.

In the first 9 months of 2025, the company's revenue reached more than 26.6 billion VND, pre-tax profit reached nearly 450 million VND, while the planned target set from the beginning of 2025 was 80 billion VND and it is estimated that it will be difficult to complete the target by the end of the year.

Ms. Hoang Thi Yen, Director of Lang Son Lottery One Member Co., Ltd., said that in the past, the distribution method according to regulations, the traditional distribution method through the direct lottery ticket sales agent system and the traditional collection method, faced many difficulties in competing with high-tech lottery activities such as Vietlott. At the same time, the development of direct sales agents in the province encountered many difficulties due to the complex terrain, the commission rate paid to agents according to state regulations could not compete with the rate of other types. In addition, illegal lottery activities and online gambling activities increasingly competed illegally in terms of participation methods (no need to write, buy tickets, participate online via the internet or phone), flexible mechanisms (commission, high rewards due to tax evasion) ... so they attracted players. These things cause the number of lottery tickets issued by the company to decrease, directly affecting the company's revenue, profit as well as tax paid to the state budget.

For Lang Son Irrigation Works Exploitation One Member Co., Ltd., although it plays an important role in ensuring food security, preventing natural disasters and providing water for daily life and industry, the company is currently facing many difficulties and challenges that affect its production and business activities.

Typically, the work of building unit prices for public irrigation services still faces many difficulties and shortcomings; the maximum price of public services is controlled by the ceiling of the annual budget support estimate; the price of irrigation products and services is low and has not been adjusted promptly according to market fluctuations (the price of labor, materials, fuel, electricity for operating pumping stations, machinery and equipment has increased sharply but the unit price of irrigation services has not changed accordingly).

At the same time, the old mechanism of ordering and assigning tasks in the "subsidized" style is no longer suitable, while the new mechanism still has obstacles for the company's transition from serving to providing services; many irrigation systems built long ago have degraded but lack funds for major repairs and maintenance. These are the things that cause the company to face many difficulties in operating production and business activities.

Find a way to overcome difficulties

Discussing this content, Ms. Le Mai Lan, Chairman of Lang Son Irrigation Works Exploitation One Member Co., Ltd., said that, in addition to the activities carried out according to the tasks assigned by the Provincial People's Committee and the Department of Agriculture and Environment (DARD) on implementing public services (serving irrigation water supply for agricultural production and aquaculture), to increase revenue, the company is making efforts to deploy "multi-purpose irrigation works" in business such as: industrial and domestic water supply; aquaculture... Along with that, it is strengthening the infrastructure of irrigation works in the direction of modernization; focusing on investing in repairing and upgrading the existing irrigation works system to apply advanced farming; modernizing management, converting management methods from manual to modern, comprehensive digital technology application.

Lang Son Lottery One Member Co., Ltd. is currently implementing solutions to increase the number of tickets issued such as: expanding the consumption market for 3 types of lottery licensed by the Ministry of Finance. At the same time, the company is flexibly applying regulations to diversify business models, and at the same time researching and linking with businesses in other areas, especially non-state enterprises, to cooperate in order to expand the production and business fields, thereby helping to improve the efficiency of using state capital through increasing revenue and profit.

Lang Son Lottery One Member Co., Ltd. opens additional Vietlot ticket issuance service in the area to increase revenue.

According to Ms. Duong Thi Hoan, Deputy Director of the Department of Finance, in order to overcome difficulties to improve the operational efficiency of these two enterprises in the coming time, implementing the direction of the Provincial People's Committee, the Department of Finance has advised the Provincial People's Committee on fully implementing the responsibilities of the owner for the two 100% state-owned enterprises. At the same time, the Department of Finance is working with other departments, branches and the two enterprises to research and advise the Provincial People's Committee to develop specific policies, in which some priority tasks are "ordered" for the two enterprises according to their fields of operation.

It is known that recently, the Provincial People's Committee has also sent documents and recommendations to central ministries and branches on perfecting policies and laws related to the operations of state-owned enterprises, especially those related to the field of asset and capital management and "open" regulations allowing enterprises to cooperate in investment and business with non-state enterprises...

In practice, the business performance of the above two companies in recent years has not been as expected. To improve business efficiency, the two companies need to proactively improve their management and corporate governance capacity. In particular, they need to quickly research and apply the state-owned enterprise management model in line with the current development trend, thereby reducing administrative costs, salary and insurance costs, etc. In addition, the two companies need to continue to research and expand a number of other business objectives outside of their current fields of operation to increase revenue...

Source: https://baolangson.vn/doanh-nghiep-100-von-nha-nuoc-tren-dia-ban-can-doi-moi-de-nang-cao-hieu-qua-hoat-dong-5063890.html