State economy rises to lead the new era

Along with the comprehensive restructuring efforts to improve operational efficiency, State-owned enterprises wish to carry out large-scale investment projects with spillover effects, creating momentum for the country's socio -economic development in the new period.

Despite facing many risks and challenges, Vietnam’s economy is recovering positively and returning to a high growth trajectory. Investment, export and consumption continue to be the main growth drivers of the economy, alongside increasingly positive contributions from new growth drivers.

VNA is one of the few enterprises with a great opportunity to become a strong economic group on par with the region thanks to its good management capacity and extensive experience competing with foreign enterprises.

Affirming the pioneering and leading role

In that context, the State-owned enterprise (SOE) system continues to play a leading role in the economy, through active contributions to disease prevention and control, participation in the socio-economic recovery and development program, creating a foundation to create an operating environment for all economic sectors and ensuring social security.

Up to now, the work of restructuring and innovating the operations of State-owned enterprises has achieved encouraging results. From a place of scattered operations, State-owned enterprises have focused on maintaining key and essential fields; important areas of national defense and security; and fields in which enterprises of other economic sectors do not invest.

However, in addition to the achieved results, the process of reforming state-owned enterprises in recent times also has some limitations such as the slow progress of implementing the Project to restructure a number of state-owned enterprises due to bottlenecks in mechanisms and policies that have not been promptly resolved. Some state-owned enterprises have low production and business efficiency, are making losses, and are not commensurate with the resources they hold. There are also ineffective projects, affecting the production and business results of enterprises; the management innovation of some state-owned enterprises has not kept up with the changing requirements of the market... The practice of 40 years of renovation shows that the state economy has always affirmed its leading role, as the basic foundation for the development of industries, fields, economic sectors and types of enterprises in the national economy. State-owned enterprises, as the core part of the state economy, always hold an important position in the economy. In the new development stage of the country, the urgent requirement for SOEs is to effectively carry out the task of arranging and innovating operations associated with the goal of increasing scale and efficiency to become strong economic entities, ensuring the implementation of the responsibility of leading the market, regulating the macro economy and being competitive in the region.

Overcoming the negative impact of the Covid-19 pandemic, VNA has recovered and ensured international competitiveness.

This is also an important time for Vietnam to consolidate and build a number of leading corporations and groups in key economic sectors such as oil and gas, telecommunications, aviation, infrastructure, etc. To do so, it is necessary to study the mechanism of assigning tasks to large enterprises to carry out large-scale investment projects with spillover effects, creating momentum for the country's socio-economic development.

Assigning state-owned enterprises to participate in large projects

At the scientific conference “Enhancing the role of the state economic sector in the socialist-oriented market economy in Vietnam - Practice of Vietnam Airlines Corporation” ( Vietnam Airlines - VNA), delegates agreed that, in the aviation sector, Vietnam needs to make focused investments to build a strong enough aviation enterprise with a flight network and fleet capable of international competition. This is one of the important factors contributing to making Vietnam a new economic and tourism center of Asia and the world. VNA is the right enterprise to implement this important strategy. “Among the current state-owned enterprises, VNA is one of the few enterprises with a great opportunity to become a strong economic group on par with the region thanks to its good management capacity and extensive experience competing with foreign enterprises. Therefore, the State needs to have appropriate investment in both financial resources and mechanisms and policies to give VNA more impetus for development,” said Associate Professor, Dr. Nguyen Van Thao, former Vice Chairman of the Central Theoretical Council. Overcoming the negative impact of the Covid-19 pandemic, VNA has recovered and ensured international competitiveness. Mr. Le Hong Ha, General Director of VNA, said that by the end of the third quarter of 2024, the airline had opened 7 more international routes, increasing the flight network to 90 destinations worldwide, connecting with more than 20 countries/territories along with many promotional activities, trade promotion, introducing the image of the country and people of Vietnam to international friends. In the first 9 months of the year, VNA has operated more than 106,000 safe flights, achieving 4/5 on the world aviation safety rating scale; on-time flights remained at nearly 85%, among the top in Asia in terms of on-time flight index. In addition, the airline also focused on digital transformation, green transformation, sustainable development and won many prestigious international awards for service quality. "The impact of the Covid-19 epidemic is extremely severe, but it is also an opportunity for VNA to restructure its operations, find flexible solutions to overcome difficulties, in addition to important support from the State," Mr. Le Hong Ha shared. However, to build VNA into a strong brand in the world with high competitiveness requires not only the efforts of businesses but also the support of the State as well as the efforts of the whole country. Because currently, VNA is still in a negative equity situation due to the negative impact of the Covid-19 pandemic. The most important solution for VNA is to remove the mechanism bottlenecks for the airline to recover and develop sustainably, including approving the overall project of solutions to remove difficulties caused by the impact of the Covid-19 pandemic. In addition, the Government needs to have a mechanism to assign VNA and other large enterprises to participate in the implementation of the Long Thanh International Airport project to promote project efficiency, develop synchronous and modern aviation infrastructure, promote trade and attract foreign investment. The State, through investment in key national projects, using state-owned enterprises, including VNA, will create new production capacity for the economy, creating a favorable business environment for the aviation industry. Source: https://vov.vn/doanh-nghiep/kinh-te-nha-nuoc-vuon-minh-dan-dat-ky-nguyen-moi-post1137218.vov