Prime Minister Pham Minh Chinh: Corporations and State-Owned Enterprises must concentrate resources for investment and development

Prime Minister Pham Minh Chinh has called for a focused effort to remove legal obstacles, thereby facilitating smooth business operations. He emphasized the need to streamline the legal framework and decentralize power to ensure appropriate resource allocation. The aim is to create a conducive environment for businesses to thrive.


Prime Minister Pham Minh Chinh works with the State Capital Management Committee in Enterprises and 19 Corporations, State-owned Enterprises

On the morning of February 5, at the Government headquarters, Prime Minister Pham Minh Chinh worked with the State Capital Management Committee in Enterprises and 19 Corporations, State-owned Enterprises on production, business in 2024 and promoting investment for socio-economic development.

Deputy Prime Ministers Le Minh Khai, Tran Hong Ha; leaders of ministries and leaders of 19 Corporations, State-owned Enterprises also attended the event.

Revenue, profit, tax payment increase

In 2023, the total revenue of the parent company of 19 corporations, state-owned enterprises reached nearly VND 1,135 trillion, equal to 105.15% of the 2023 plan. Pre-tax profit reached VND 53,256 billion (excluding Vietnam Electricity Group-EVN), equal to 166.09% of the 2023 plan and 110.92% compared to the same period in 2022.

The Corporations, State-owned Enterprises contributed more than VND 79,252 billion to the state budget, equal to 199.96% of the 2023 plan and 120.22% compared to the same period in 2022.

15 out of 19 Corporations, State-owned Enterprises completed and exceeded the plan for revenue; 16 out of 19 corporations, state-owned enterprises completed and exceeded the plan for pre-tax profit (Vietnam Airlines Corporation reduced losses compared to the plan); 16 out of 19 corporations, state-owned enterprises completed and exceeded the plan for tax payment to the state budget.

At the conference, leaders of ministries, corporations, state-owned enterprises analyzed and evaluated the results of activities in 2023 and proposed tasks and solutions to promote production, business and contribute to socio-economic development in 2024 and the future. In particular, delegates reviewed the need to improve the organizational structure, mechanisms, policies and laws related to the effective operation of corporations, state-owned enterprises.

Taking note of the opinions of the delegates, delivering the conference’s closing remarks, Prime Minister Pham Minh Chinh highly appreciated the efforts and achievements of the State Capital Management Committee in Enterprises (the Committee) and 19 Corporations, State-owned Enterprises in the past time, contributing to implementing the country’s socio-economic development plan in 2023.

In the spirit of not getting too caught up in victory, being subjective, negligent, and losing vigilance, Prime Minister Chinh pointed out limitations and weaknesses such as: existing difficulties related to institutions, mechanisms, policies; limited investment for development; contribution to GDP growth not commensurate with assets and financial resources held; the efficiency of business investment is not high…

These limitations are due to the positive, proactive, creative, and daring thinking and actions of some leaders of corporations and state-owned enterprises not being fully utilized; legal issues, especially land, public investment, not being handled promptly; policies for business officials, capital management are still inadequate and not suitable for the actual situation; the corporate management system is not truly suitable for the market economy, with many hierarchies and intermediary steps causing bottlenecks, requiring continued implementation and experience withdrawal; still affected by COVID-19…

Analysing the situation in the coming time, Prime Minister Chinh said that 2024 is of great significance as it is the year to implement the 5-year socio-economic development plan 2021-2025; the requirements and tasks of 2024 are higher than those of 2023. While forecasting that the international and domestic situation will continue to have advantages, opportunities, as well as difficulties and challenges intertwined, with more difficulties and challenges.

Focus on investment and development

To successfully achieve the assigned goals and tasks in 2024 and the 2021-2025 period, the State Capital Management Committee in Enterprises and the 19 Corporations, State-owned Enterprises must have a firm grasp of the situation and effectively implement the conclusions, resolutions of the Party Central Committee, National Assembly, Government, concretize them to carry out the goals and tasks of 2024 with the theme: “Responsibility, proactive timeliness, accelerating innovation, sustainable effectiveness”; state-owned enterprises must operate according to a market-oriented socialist direction.

Prime Minister Pham Minh Chinh works with the State Capital Management Committee in Enterprises and 19 Corporations, State-owned Enterprises.

The head of the government directed the State Capital Management Committee in Enterprises to build and implement the development strategies of the corporations and state-owned enterprises, showing a stronger role in leadership, motivation, opening up opportunities, promoting the development of other economic components; at the same time, regularly and timely summarize difficulties, problems in production, business, investment, restructuring, equitization, rearrangement of houses, land… of enterprises; urgently resolve issues under its jurisdiction, timely provide opinions and recommendations for competent authorities to resolve issues beyond the jurisdiction of the Committee and enterprises; best complete the tasks of production, business to ensure major balances for the economy, stabilize the macro economy, ensure revenue for the state budget, and provide employment for workers.

Prime Minister Chinh requires focusing on removing legal difficulties to remove obstacles and create a legal framework for business operations, with a spirit of decentralization and power allocation that is commensurate with appropriate resource allocation, enhancing the capacity of lower levels, strengthening inspection, supervision, and control of power; simplifying administrative procedures and enhancing a spirit of daring thinking, daring to act, daring to take responsibility, especially for leaders.

Focus on investment and development, with emphasis on the 3 strategic breakthroughs of the Party and the State, namely completing institutions, developing infrastructure, training human resources; renewing the 3 growth engines of investment, exports, consumption; adding new drivers of green development, digital transformation, green transition, circular economy, knowledge economy, sharing economy; restructuring the corporations, state-owned enterprises, with a focus on restructuring in administration, finance, input materials, and industries according to development trends.

Prime Minister Chinh calls for promoting traditions, bravery, self-confidence, creating new spirit, motivation, and new victories; actively preventing corruption, negative practices, group interests, and waiting mentality; improving the material and spiritual life of workers next year higher than the previous year; doing well in social welfare.

Ministries, sectors, and the State Capital Management Committee in Enterprises must closely coordinate, remove, and promptly resolve difficulties, obstacles related to enterprises, in the spirit of all for the national and ethnic interests, for the development of corporations and state-owned enterprises. Deputy Prime Ministers shall monitor and direct in their assigned fields; the Government Office and the State Capital Management Committee in Enterprises shall proactively monitor the situation and provide advice for corporations, state-owned enterprises to develop.

“Corporations and State-owned Enterprises must pay special attention to ensuring major balances in electricity, coal, petroleum, petroleum products, supplying products as raw materials for manufacturing industries and for national security and defense, passenger and cargo transportation, agricultural and forestry products,” the Prime Minister noted.

Prime Minister Chinh requires Vietnam Electricity Group to absolutely not allow power shortage, adjust electricity prices in accordance with the market, not impulsively increase prices. Vietnam Oil and Gas Corporation must ensure sufficient oil and gas according to the plan. Vietnam National Coal and Mineral Industries Group must mine coal and minerals according to long-term, sustainable plans; strengthen decentralization, power allocation, and not allow the “beg-receive” mechanism.

Vietnam Steel Corporation must ensure steel production, completely handle the Tisco 2 project. Vietnam Airlines Corporation must strive to reduce losses, completely resolve outstanding issues. Petrolimex must not allow shortages of petroleum products. The Ministry of Industry and Trade must improve the management mechanism of petroleum business units in a simple, easy-to-check, and supervise manner, not allowing too many petroleum business units…

Prime Minister Chinh requires the State Capital Management Committee in Enterprises and corporations, state-owned enterprises to seriously implement the directions of the Government, the Prime Minister, with the aim of effective business, investment, contribution to the budget, social welfare work, anti-corruption, negative practices and loss prevention must be more effective in 2024 than in 2023.

Nhat Quang

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