Exploiting private resources, strengthening the regulatory role of the state economy

Photo caption — National Assembly delegate of Bac Ninh province Tran Van Lam. Photo: Doan Tan/VNA

In an interview with the press on the sidelines of the 10th Session of the 15th National Assembly, National Assembly Delegate Tran Van Lam, National Assembly Delegation of Bac Ninh province, gave assessments of both of these economic sectors to promote efficiency in the coming time.

After the issuance of Resolution No. 68-NQ/TW of the Politburo on private economic development, the number of newly established enterprises has increased sharply. According to the delegate, what are the key conditions for the private economic sector to develop more strongly in the coming time?

The Resolution affirmed that the private economy is the most important driving force of the national economy, the pioneering force promoting growth... For this sector to develop strongly, the first thing is to perfect the institutions, ensuring a free and equal competitive environment among economic sectors. Along with that, it is necessary to create more favorable conditions for private enterprises to access capital, technology, human resources and other market factors.

When procedural and institutional barriers are removed, the potential of the private economy will be more strongly activated, making a greater contribution to growth and sustainable development.

The Government has a policy of attracting the private sector to participate in large, key national projects, typically the North-South high-speed railway project. What do you think about this policy and what “push” is needed for the private sector to boldly participate in large projects?

Attracting the private sector to large, key national projects is considered the most positive effect of Resolution No. 68-NQ/TW. The Resolution shows that the Vietnamese private economy is not weak; they have the capacity, resources and, more importantly, the spirit and enthusiasm to contribute to the country's economic development. The problem is to know how to motivate, mobilize and create favorable conditions for them to participate.

For national key projects, if the private sector can do it, the State should support and create favorable conditions for them. However, private enterprises still find it difficult to have enough resources for very large-scale projects, so there needs to be a suitable public-private partnership (PPP) mechanism to share and support the private sector.

When the private sector participates in large projects, they have a great advantage in good governance, focusing on efficiency, progress and minimizing waste - because the interests of the enterprise are directly linked to the success of the project. If this is promoted, the participation of the private sector will create a strong driving force, helping key national projects to be implemented more quickly, transparently and effectively.

It is expected that there will be a new resolution on the state economy in the near future. In your opinion, what key contents should this resolution focus on to improve the efficiency of the state economic sector?

The state economy plays a particularly important role in the socialist-oriented market economy. The state economy in general, and state-owned enterprises in particular, are the tools for the State to regulate the market, ensure macroeconomic stability and deal with the negative aspects of the market economy. However, despite holding huge resources, the efficiency of resource use is not high compared to other sectors.

In the coming time, if the Party and State pay attention to building a resolution on the state economy, the resolution needs to pay attention to a number of issues.

Firstly, clearly affirm the role of the state economy and state-owned enterprises in the economy and place them in the right positions where they are truly needed. Do not spread them out, and state-owned enterprises must not be everywhere. The state should only maintain key areas such as national defense, security, macroeconomic stability, national energy, power transmission systems, etc.

Second, continue to reorganize, equitize, and divest from sectors where the State does not need to hold. This policy has been in place, but the results have not been as expected, so in the near future, we must redefine the focus and find more effective ways to do it.

Third, for the sectors that the State still needs to hold, it is necessary to improve the governance efficiency and market regulation capacity of state-owned enterprises. For example, when gasoline prices fluctuate strongly, state-owned enterprises must play a stabilizing role; or in the electricity industry, state-owned enterprises only hold the transmission part, so they must reduce losses and distribute electricity promptly to users.

Thus, the state economic sector can truly play its pivotal role, supporting and creating a stable foundation for the entire economy.

Thank you very much, delegates!