Innovation in thinking and awareness about state-owned enterprises

By 2024, the country will have more than 670 state-owned enterprises, of which 473 are 100% state-owned, and 198 are state-owned. Total assets will reach more than VND 5.6 trillion, equity will reach nearly VND 3 trillion, total revenue will reach nearly VND 3.3 trillion, pre-tax profit will reach more than VND 227 trillion, contributing more than 29% of the country's GDP.

The Government 's report on investment, management and use of state capital in enterprises in 2024 shows that the production and business performance of state-owned enterprises has improved. Key financial indicators such as revenue, pre-tax profit, and budget payments all increased compared to the same period in 2023. Enterprises continue to perform well in preserving and developing capital and assets. Production, business, and investment development tasks according to the plan have been basically completed.

Despite the positive results, the Government also frankly acknowledged that the role of state-owned enterprises in leading and motivating enterprises of all economic sectors to develop and promote linkages and form value-added chains is still limited. There are only a few large corporations and groups operating in industries that have a decisive influence on improving competitiveness and leading the process of economic restructuring. Most of the remaining enterprises operate in a closed manner, forming an internal closed production chain, not creating many conditions for other enterprises to participate in the production and consumption chain.

In addition, capital and asset resources have not been fully exploited due to regulations on assignment and decentralization of investment decision-making authority. Enterprises have not been given autonomy in major investment decisions and risky decisions. The State's reinvestment in enterprises is still limited and untimely due to the narrow scope of capital investment and cumbersome and complicated procedures. In particular, the initiative and competitiveness in production and business activities are still limited, leading to lost opportunities.

The main reason for the above shortcomings and limitations is that the legal regulations on investment of state-owned enterprises are not yet synchronous and unified, requiring reference to many documents, leading to a prolonged investment preparation process. The division of labor and decentralization has not been promoted, creating initiative for enterprises to make quick and timely decisions, to seize investment opportunities and trends in the new context. Many enterprises have not been proactive in researching and innovating science and technology; the level of corporate governance is still limited, not meeting the requirements of innovation. The investment objectives of state owners in a number of economic groups and corporations are not clear, and the investment tasks for efficiency and for political and social goals have not been separated, leading to difficulties in monitoring, evaluating operations and corporate governance.

To overcome this situation, the National Assembly passed the Law on Management and Investment of State Capital in Enterprises at the Ninth Session - creating an important legal corridor to unify and make transparent the management and use of state capital, strengthen decentralization and enhance the responsibility of the owner's representative agency. The Law also clearly demonstrates the spirit of innovation in management thinking from "strict management to avoid mistakes" to "effective management to create value". At the same time, it determines the principles of state capital management according to international practices, linking the accountability of the owner's representative agency with investment efficiency. Expanding the autonomy of enterprises in investment decisions, personnel and business strategies.

This is an important step forward, creating an institutional breakthrough for enterprises in particular and the state economic sector in general to develop dynamically, effectively, in accordance with the requirements of international integration. However, to achieve this, according to former Vice Chairman of the National Assembly Phung Quoc Hien, the first and most important solution is to continue to innovate thinking in building and perfecting institutions as well as awareness of state-owned enterprises in the new context. Only then can state-owned enterprises continue to promote and maximize their leading and key position and role in the country's socio-economic development.

Source: https://daibieunhandan.vn/doi-moi-tu-duy-nhan-thuc-ve-doanh-nghiep-nha-nuoc-10390928.html