Resolution 79: When the State 'leads' instead of 'doing things for' and 'encroaching' on others' territory.

Following Resolution 68, the private sector was for the first time named as "the most important driving force" of the economy. Subsequently, Resolution 79 was issued, further affirming the "leading, pioneering, and guiding role" of the state-owned economy in creating development.

The two resolutions, placed side-by-side, easily raise questions: will these two driving forces actually overlap in practice?

That question is embedded in development projects and each controversial adjustment of electricity prices, reflecting the concerns of state-owned enterprises: how to both follow market principles and remain committed to social objectives.

Therefore, the discussions surrounding Resolution 79 at the recent seminar organized by Tien Phong newspaper were not just academic matters, but also a story of practical development.

Leadership cannot be achieved solely through role.

When the state-owned economy is required to operate according to market principles and with full accounting, competition with the private sector is inevitable. The question is: will this competition create mutual development or destroy each other?

If state-owned enterprises lack genuine capacity, the concept of "leading" can easily become merely a formality. State-owned enterprises cannot pave the way if they themselves are still struggling to find their own path to development.

Petrovietnam Group's offshore wind farm

Resolution 79 is correct in its objectives and direction, but it needs to clearly define the path to avoid a situation where it's correct on paper but slow to implement in practice.

More importantly, if the roles of the public and private sectors are not clearly defined, Resolution 79 could inadvertently undermine the spirit of Resolution 68.

When "leading" is misinterpreted as "taking over" or "encroaching," the most important growth driver is vulnerable.

Practical experience in the transportation infrastructure sector reveals a long-standing paradox: some state-owned enterprises are entrusted with implementing numerous key national expressway projects, but their registered capital is too small compared to their total assets and investment scale. Such a capital structure makes it difficult for these enterprises to raise additional resources, forcing them to miss out on crucial projects.

Only with substantial capital increases will the situation change. Businesses will immediately accelerate, simultaneously implementing multiple large projects, including those under the PPP model.

The lesson learned is clear: giving state-owned enterprises a leading role without providing them with sufficient resources puts them at risk.

Resolution 79, therefore, cannot be simply understood as strengthening state-owned enterprises and expanding them to dominate the market. Instead, it places them in the task of doing what state-owned enterprises need to do, in key sectors with real ripple effects.

An economy that only invests in sure-win projects will find it very difficult to create breakthroughs. Leading in the spirit of Resolution 79 means daring to be the first, accepting controlled risks, especially in new fields, high technology, and strategic infrastructure – where the private sector is not yet qualified to participate.

This requires not only more flexible evaluation mechanisms, but also necessary protection for those who dare to act and take responsibility for the common good. If every risk is labeled as a wrongdoing, no one will have the courage to take the lead.

Market discipline and uncomfortable decisions

A notable shift is how some large state-owned corporations are approaching Resolution 79 not with the mindset of asking for more mechanisms, but with the pressure to tighten their own regulations.

Operating according to market principles means accepting difficult, even sensitive, decisions. Electricity is a prime example. Market-based operations don't mean ignoring social objectives, but they also cannot avoid transparency in costs, accurate value reflection, and encouraging efficient resource utilization. The boundary between market principles, social welfare, and political objectives is where the leadership role of state-owned enterprises is most clearly tested.

Furthermore, governance reform is no longer an abstract concept. Many state-owned enterprises have begun to accelerate digital transformation, standardize processes, improve operational efficiency, and create tangible value, not just changes on paper. This demonstrates that market discipline, if seriously implemented, can absolutely yield positive results.

A crucial point of Resolution 79, which is easily misinterpreted, is that it is not just about state-owned enterprises. The deeper focus is on the governance of all resources belonging to the state economy – from capital, land, infrastructure to public assets and investment funds.

Publicly owned assets do not mean that only the state sector is entitled to preferential use. The important thing is to allocate them effectively to the entire society, through transparent and market-based mechanisms. State-owned enterprises are merely one tool in this system, not an end in itself.

This approach helps Resolution 79 break free from the rut of "discussing state-owned enterprises again," moving closer to a modern mindset: the state leads by organizing and allocating resources, rather than replacing the market.

The bottleneck lies in the institutions and the people.

A resolution, no matter how correct, will be difficult to implement if the institutionalization process is slow and hesitant.

With Resolution 79, the most difficult stage is no longer setting direction, but rather transitioning from written documents to action – building specific mechanisms and concrete action programs that are clear enough to implement and flexible enough not to tie the hands of those involved.

But ultimately, people remain the deciding factor. With the same mechanism, some places perform very well, while others remain almost stagnant. The difference lies in the competence, character, and sense of responsibility of the implementing team, especially the leaders.

Overall, Resolution 79 does not aim to expand the role of the state-owned economy in an inclusive way, but rather in a more streamlined and efficient manner. The leadership is not intended to overshadow the private sector, but to pave the way for better market functioning, more efficient resource allocation, and the creation of a foundation for long-term growth.

If implemented correctly, Resolution 79 will not contradict Resolution 68, but rather complement each other, becoming two parallel pillars: the State fulfilling its role of creating and leading the strategy, while the market – with the private sector as the main driving force – is given sufficient space to grow.

Ultimately, the test of Resolution 79 lies in whether there is sufficient determination and capacity to translate the "leading role" into substantive action. This will be answered in practice through each project, each decision, and each stage of economic growth.

Vietnamnet.vn

Source: https://vietnamnet.vn/nghi-quyet-79-khi-nha-nuoc-dan-dat-thay-vi-lam-thay-va-lan-san-2488869.html