Empower Decentralization: Corporations and Conglomerates taking Ownership and Accountability

The Ministry of Planning and Investment is finalizing the consultation process on the draft Decree amending and supplementing certain provisions of Government Decree No. 10/2019/ND-CP regarding the implementation of the rights and responsibilities of state-owned enterprise representatives. The draft decree, which aligns with the Prime Minister's directive to enhance decentralization and delegation of authority, will be submitted to the Government soon. Under the proposed amendments, conglomerates and state-owned corporations will have more autonomy and accountability.


This is the opinion of Deputy Minister of Planning and Investment Tran Duy Dong at a working session between the Prime Minister and the State Capital Management Committee (SCMC) and 19 groups and corporations under SCMC.

Deputy Minister of Planning and Investment Tran Duy Dong speaking at the working session – Photo: VGP/Nhat Bac

Important contributions but lacking an attacking spirit

At the working session, Deputy Minister of Planning and Investment Tran Duy Dong said that by the end of 2023, the total revenue of 19 parent companies of groups and state-owned corporations reached nearly VND 1,136 trillion, equivalent to 105% of the plan. The total pre-tax profit reached over VND 53 trillion, reaching 166% of the plan. Total state budget contributions amounted to VND 79.2 trillion, reaching nearly 200% of the plan… These results have made significant contributions to the country’s economic development in the context of domestic businesses facing many difficulties.

In 2023, groups and corporations provided important products and services for the economy, meeting essential needs of the people such as electricity, coal, petroleum, basic chemicals.

The units have disbursed about VND 161 trillion, focusing on important projects in the energy sector (accounting for VND 130 trillion), some corporations have achieved positive disbursement results.

In addition, the SCMC has actively directed enterprises to continue to overcome difficulties and obstacles to accelerate the implementation and completion of many important infrastructure projects such as Long Thanh International Airport Project, Ben Luc – Long Thanh Expressway Project, Vai Import LNG Port Project… Major projects are being vigorously deployed and are expected to have many spillover effects on socioeconomic development in 2024 and the coming periods.

In addition to the above-mentioned notable results, the leaders of the Ministry of Planning and Investment pointed out that the investment and implementation of projects by groups and state-owned enterprises under SCMC still face some problems.

The disbursement results of investment capital for the whole year of 2023 only reached about 80% of the plan. Some groups had disbursement rates that did not reach the set plan such as PVN nearly 66%, VNPT reached 61% and Mobifone reached 56%. SCIC has not disbursed for the investment in 2023. The new investment capital is concentrated in a few important sectors such as energy, transportation infrastructure; the investment results of other sectors are limited. The proportion of investment capital into leading industries and sectors, especially in new areas such as clean energy production, renewable energy, high technology (semiconductor production, hydrogen production…), has not had large-scale investment projects to create breakthrough momentum, spillover effects, supporting restructuring, and enhancing the competitiveness of the economy…

Urgently implementing the Resolutions of the Party and the Government

Resolution No. 01/NQ-CP of the Government on the key tasks and solutions for socio-economic and state budget development in 2024 sets out the task of strengthening the construction and development of a synchronized, modern and strategic infrastructure system, especially strategic transportation systems, airports, seaports, urban infrastructure, regional infrastructure, digital infrastructure, social infrastructure, health care, education…

Firstly, it is necessary to focus on removing difficulties and speeding up the progress of implementing important national transportation infrastructure projects such as Long Thanh International Airport, Terminal T3 – Tan Son Nhat International Airport, early completion of upgrading marine shipping lanes to Cai Mep – Thi Vai port, Nam Nghi Son port, Ben Luc – Long Thanh Expressway project…;

Secondly, timely and effective implementation of the Power Development Master Plan for the period 2021 – 2030, vision to 2050; promoting the deployment of important power projects such as Nhon Trach 3,4, Quang Tri Thermal Power Plant 1, starting the O Mon 3, O Mon 4 Thermal Power Plant projects… ensuring energy security, supplying sufficient electricity, petroleum for consumption, production and business activities…

Thirdly, there is a need to continue the transformation, development, and popularization of traditional telecommunication infrastructure into digital infrastructure; promoting the development of data centers and cloud computing, digital technology infrastructure and digital platforms, digital applications to create impetus for digital economic development. Developing and popularizing national digital platforms; completing the integrated and shared national data platform, contributing to creating a new development space; focusing on building the National Data Center to serve online guidance, operation, and provision of public services.

In order to continue to promote the role and effectiveness of investment by groups and state-owned corporations in achieving the socio-economic development tasks in 2024, the Ministry of Planning and Investment recommends that agencies and businesses focus on implementing a number of solutions.

The ministries need to speed up the completion of proposals to amend the Law No. 69/2014/QH13 and submit them to the National Assembly and the Government for consideration and decision-making, including the comprehensive institutionalization of the principles and orientations on continuing to promote decentralization and devolution; the representative agencies of the state owner shall only decide on major and important issues with orientation functions, focusing on inspection and supervision. The Board of members, representatives of state capital in enterprises shall actively decide on the production and business activities of the enterprise.

The ministries need to review and consult the competent authorities to perfect the legal framework for remuneration of managers and employees at state-owned enterprises; the representative of state capital in enterprises; urgently submit to the Government for promulgation the guiding decrees on bidding regulations, land law according to the simplified administrative procedures, creating favorable conditions for enterprises to implement investment projects, procurement for production and business activities…

The SCMC, groups, and corporations need to continue to implement the solutions and orientations stipulated in Resolution No. 68/NQ-CP; resolutely review and implement large and key investment projects according to the directions of the Prime Minister in Directive No. 12/CT-TTg. Coordinate closely with ministries and agencies to finally handle or report to the competent level to propose solutions to promptly resolve legal obstacles in the implementation process. Research and develop periodic exchange mechanisms with ministries, sectors; set up special working groups to thoroughly address and remove obstacles in the implementation of large and important investment projects.

State-owned enterprises need to promote innovation and apply science and technology in investment and development projects; apply new technologies and clean energy use, transform business models towards green economy, circular economy, and sustainable development as committed…

It is necessary to implement Resolution No. 68/NQ-CP and Resolution No. 41-NQ/TW to meet the requirements of the country’s economic development in the new context of the fourth industrial revolution. The Ministry of Planning and Investment has studied and proposed to the Prime Minister the Scheme “Developing mechanisms, policies for the formation and development of ethnic enterprises to promote a pioneering role in some newly emerging sectors and fields with competitive advantages to build an independent, self-reliant economy”.

At the working session, Deputy Minister Tran Duy Dong also specifically answered questions from representatives of some leaders of groups and corporations.

Deputy Minister Tran Duy Dong said that the Ministry of Planning and Investment is collecting opinions on the draft Decree amending and supplementing some articles of Decree No. 10/2019/ND-CP of the Government on the implementation of the rights and responsibilities of the state capital representative and will soon submit it to the Government. Accordingly, the amendment is closely following the spirit of the Prime Minister’s direction to promote decentralization and devolution. Accordingly, groups and corporations are autonomous and responsible.

“In terms of financial mechanisms, the Ministry of Finance needs to complete the files for submission to competent levels, on the spirit of separating the functions of state management, the function of representing the state owner, the function of management of production and business activities at enterprises, thereby focusing on promoting decentralization and devolution”, representative of the Ministry of Planning and Investment emphasized.

Nhat Quang

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