State-owned economy in Hanoi:

From 6:30 PM to 8:00 PM on March 27th, the Hanoi Press and Broadcasting Agency broadcast a special news program titled "State-Owned Economy in Hanoi - Leading, Guiding, and Creating Development." Featuring Associate Professor Dr. Vu Van Phuc, former Editor-in-Chief of the Communist Magazine, and Professor Dr. Tran Tho Dat, former Rector of the National Economics University, the program focused on clarifying the role, position, and reform requirements of the state-owned economy in the context of new development.

The emergency renovation project for the Thuy Phuong canal is being implemented by the Urban Infrastructure Development Investment Corporation (UDIC). Photo: Quang Thai

Repositioning the role of the state economy in the new growth model.

The state-owned economy has long held a pivotal position in the national economy, particularly in ensuring macroeconomic stability and maintaining major balances. However, in the current context, as the Vietnamese economy in general and Hanoi in particular enter a new phase of development requiring high, sustainable growth linked to green transformation and digital transformation, the role of this sector needs to be re-evaluated in a more comprehensive manner.

According to Associate Professor Dr. Vu Van Phuc, the fundamental new aspect of Resolution No. 79-NQ/TW is its broad approach to the state economy, not limited to state-owned enterprises but encompassing important resource systems such as land, public assets, the budget, and macroeconomic regulatory tools. This helps shift the mindset from managing individual sectors to comprehensive national resource management.

"The leading role of the state-owned economy is not only to maintain stability but also to guide strategic development," he emphasized, while pointing out three pillars that demonstrate this role: ensuring macroeconomic stability and guiding development; achieving social progress and equity; and creating resources for the State to regulate and respond to fluctuations.

From another perspective, Professor Tran Tho Dat argues that the current requirement is not only to maintain the leading role but also to elevate it to the level of a "leading, creating, and pioneering" force. This is especially important in the context of an economy facing numerous external challenges, such as market fluctuations and international competition, as well as internal demands for innovation in the growth model.

He analyzed that, in the new growth model, the state-owned economy needs to play a pioneering role in key areas such as infrastructure, energy, technology, and innovation. These are areas that require large capital investments and involve high risks, making it difficult for the private sector to participate from the outset. "In those areas, the state-owned economy must take the lead, creating a foundation for other sectors to participate," Professor Tran Tho Dat emphasized.

Another noteworthy point is the relationship between the state-owned and private economies. While there were previously incomplete understandings, Resolution 79 clarified that these two sectors are complementary. The state-owned economy does not compete directly but focuses on addressing bottlenecks and creating conditions for the development of the private economy.

Therefore, it can be seen that redefining the role of the state-owned economy is not only a theoretical requirement, but also a prerequisite for building an effective, sustainable, and highly adaptable growth model, in which this sector plays a core role in organizing, leading, and allocating resources, while creating a favorable environment for all economic sectors to develop together, contributing to enhancing the resilience and competitiveness of the capital's economy in the new context.

Removing institutional, governance, and resource bottlenecks.

One of the highlights of Resolution No. 79-NQ/TW is that it clearly identifies the "bottlenecks" hindering the development of the state-owned economic sector, thereby providing systematic and highly feasible directions for resolving them in practice.

According to Professor Tran Tho Dat, the first bottleneck is the intertwining of political and economic tasks. For a long time, state-owned enterprises have had to simultaneously pursue political goals and operate according to market mechanisms, leading to low operational efficiency and a lack of transparency in evaluating results.

"Resolution 79 has clearly separated these two tasks, creating conditions for state-owned enterprises to operate more transparently and efficiently," he analyzed, adding that this is an important step to overcome the "playing both sides" situation in the management and operation of state-owned enterprises in the past.

The second bottleneck is institutional and governance. In reality, many state-owned enterprises still operate with an administrative mindset, not adhering to modern governance standards, and failing to meet the requirements of transparency, efficiency, and competitiveness in a market economy. This reduces their ability to adapt to the rapid changes in the business environment.

Associate Professor Vu Van Phuc believes that the shift from "management" to "governance," and from "pre-audit" to "post-audit," is a fundamental step, not only changing the way operations are conducted but also changing the approach and mindset. This creates conditions for businesses to be more proactive in their production and business activities, while still ensuring risk control and accountability.

The third bottleneck relates to the allocation and utilization of resources. Although the state-owned economy holds vast resources, from capital and land to public assets, the efficiency of their exploitation remains limited. The main reasons are the lack of a rational allocation mechanism, a failure to closely link it to efficiency of use, and the absence of a complete and transparent data system to support governance and decision-making.

Resolution 79 broadened the approach, viewing the state economy as a totality of resources, thereby creating a basis for building a more efficient allocation mechanism. It also required linking resource allocation to accountability and output results, thereby improving efficiency and avoiding waste.

Besides identifying bottlenecks, Resolution 79 also outlines breakthrough directions, such as restructuring state-owned enterprises in depth, focusing on key sectors, building strong economic groups capable of competing regionally and internationally, and strongly promoting innovation, the application of science and technology, and digital transformation throughout the entire state-owned economic sector.

In particular, the requirement to improve governance capacity according to international standards, increase transparency and accountability is not only a necessary condition but also a decisive factor for the state-owned economic sector to truly play a leading role, build market confidence, and contribute more effectively to economic growth in the new period.

The Sai Dong new urban area is invested in by the Hanoi Housing Investment and Development Corporation (HANDICO). Photo: Quang Thai

Hanoi seeks breakthrough points to lead development.

Following the central government's guidance, Hanoi has concretized it with Action Program No. 09, adopting an approach that is considered "clearer, deeper, and more action-oriented."

According to Professor Tran Tho Dat, the highlight of the program is that it has clearly identified six pillars of state-owned economic resources, from land and public assets to enterprises and finance. This is a crucial shift from a decentralized management mindset to a holistic governance approach.

The program also outlines eight specific solution groups, assigning clear responsibilities to each agency and unit, thereby improving implementation efficiency and ensuring consistency in the organization and execution of socio-economic development tasks in the capital city.

From an implementation perspective, Associate Professor Vu Van Phuc emphasized that the key solution is to review and digitize all state economic resources. "Only when we have a firm grasp of the data can we overcome bottlenecks and utilize resources effectively," he said, adding that building a complete and transparent data system is also a crucial foundation for improving governance and decision-making capabilities.

Furthermore, improving the coordination mechanism between departments and agencies is considered an urgent requirement. In reality, despite numerous reforms in decentralization and delegation of power, overlapping responsibilities still exist, affecting administrative efficiency and slowing down policy responses to new development demands.

Another crucial factor is the mechanism for protecting officials who dare to think and act. Without addressing the fear of making mistakes and taking responsibility, it will be difficult to create genuine breakthroughs, especially in the context of Hanoi setting high development goals and demanding strong reforms in governance methods.

At the enterprise level, the state-owned enterprise sector needs fundamental changes, from governance to operational areas, focusing on key, essential sectors that play a leading and foundational role in development, while also taking the lead in digital transformation, green transformation, and innovation.

Simultaneously, building a development ecosystem and strengthening linkages with the private sector is also an important direction, in which the state-owned economy plays a "core" role, creating an environment and leading other economic sectors to participate, thereby contributing to enhancing the competitiveness and resilience of the capital's economy in the face of the fluctuations of the new context.

It can be seen that Resolution 79 and Action Program 09 have opened up a new, more comprehensive and substantive approach to the state-owned economy, not only focusing on defining its role but also setting specific requirements for implementation, thereby aiming to build a truly effective state-owned economic sector capable of leading and creating a ripple effect for Hanoi's socio-economic development in the coming period.

In the context of Hanoi's goal of high growth and sustainable development, promoting the role of the state-owned economy, while harmoniously integrating it with the private sector, will be crucial. If implemented decisively, synchronously, and in the right direction, the state-owned economy will not only play a leading role but also become a pioneering force, guiding and shaping the development of the capital city in the new era.

Source: https://hanoimoi.vn/kinh-te-nha-nuoc-tai-ha-noi-tu-giu-nhip-den-dan-dat-va-kien-tao-tang-truong-741670.html