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Minister of Finance Ho Duc Phoc speaks at the workshop – Photo: VGP/HT
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Minister of Finance Ho Duc Phoc evaluated that this is a very important law that affects businesses, including military enterprises. The Ministry of Finance has established a steering committee and a drafting committee and has drafted six policies for the bill.
Through the development of these policies, the Ministry of Finance realized that many businesses provided feedback, stating that the draft is not comprehensive or reasonable and that there are overlaps that do not facilitate business development.
Meanwhile, the Party and State’s policy is that all enterprises are completely equal before the law, without any bias or preference for any components, whether they are state-owned enterprises (SOEs) or private or foreign-invested enterprises. It is imperative to ensure that when state capital is invested in an enterprise and the business owner is facilitated to use it, it must be preserved and developed, generating jobs and profits and contributing to the state budget. At the same time, SOEs or state-capitalized enterprises must grow stronger and operate effectively.
The head of the Ministry of Finance stated that the Party and State’s policy is to build an independent and autonomous Vietnamese economy. Currently, there are many strong domestic enterprises, including private ones. However, foreign-invested enterprises account for about 73-75% of export products. This indicates that Vietnamese enterprises, especially SOEs, must strengthen and create breakthroughs for development, venturing into challenging and creative fields. To achieve this, policies and laws must create the best conditions for SOEs to promote development, autonomy, self-determination, and accountability.
There is a need to review laws such as bidding and public investment… For laws that need to be “untied” to allow SOEs to develop quickly and effectively, delegates are requested to boldly provide feedback.
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Workshop on the draft Law on Management and Investment of State Capital in Enterprises – Photo: VGP/HT
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In reality, the challenge lies in the difficulty of technological innovation in SOEs, which is more difficult than in private enterprises. This is primarily due to investment project formulation, approval, and bidding processes. Moreover, the management mechanism of many SOEs is multi-layered, and the allocation and arrangement of SOE personnel have not been truly optimized for maximum work efficiency.
Minister Ho Duc Phoc cited the successful example of an SOE in Singapore, effectively utilizing state budget funds and practicing good risk management. Some projects incur losses, while others turn a profit, but on average, the investment projects are profitable.
“This law is extremely important to create momentum for enterprises’ development in the future. Therefore, the drafting committee highly appreciates receiving valuable feedback, especially from leaders of enterprises, chairpersons, and general directors of SOEs with practical experience and insights into the difficulties and challenges. We also expect proposals for creative initiatives in the process of managing capital optimally. The drafting committee’s principle is to enhance proactiveness and flexibility, along with decentralization, considering the ultimate efficiency. This is the goal to ensure the dynamism of enterprises,” emphasized Minister Ho Duc Phoc.
Mr. Le Quang Manh, Chairman of the National Assembly’s Finance and Budget Committee, stated that the country’s context and the requirements of the new development phase present numerous tasks.
Therefore, it is necessary to review the legal system and policies related to SOEs, especially those concerning economic groups, state capital management, asset restructuring, and SOE reform for higher efficiency.
Accordingly, it is crucial to delineate and clarify the function of the owner of state assets and capital from the function of enterprise governance and the function of state management in enterprises.
Based on this perspective, the National Assembly and the Government have determined the need to formulate a new law that aligns with the aforementioned orientation and the general situation of SOEs, addressing the shortcomings and difficulties of the Law on Management and Use of State Capital Invested in Production and Business (Law 69).
“The National Assembly has also issued a resolution on the law and ordinance-making program for 2025 and adjusted the law and ordinance-making program for 2024. The Law on Management and Investment of State Capital will be submitted to the National Assembly for consideration at the 8th session and approved at the 9th session in May 2025,” said the representative of the National Assembly’s Finance and Budget Committee.
Mr. Le Quang Manh shared that to ensure the quality of the bill, the Finance and Budget Committee has been accompanying and supervising the drafting process with the main drafting agency, the Ministry of Finance. The committee has been listening to the community’s opinions, including those from scientists, experts, and especially SOEs, which are the subjects affected by the draft law.
Therefore, insights from enterprises are currently needed, contributing opinions to six critical policy groups.
Firstly, there is a group of policies on state capital management and investment in enterprises. Secondly, policies on state capital investment in enterprises. Thirdly, policies on investment activities of enterprises themselves. Fourthly, a group of policies on rearranging and restructuring state capital in enterprises. Fifthly, policies on the agency of the representative of the owner of state capital, and finally, a group of policies on enterprise governance.
“Enterprises in a market economy compete on an equal footing, but SOEs also have many binding regulations. Therefore, it is necessary to upgrade, innovate, and modernize enterprise management tools,” said Mr. Le Quang Manh.
Senior Lieutenant General Vu Hai San, Deputy Minister of National Defense, assessed that the Ministry of Finance has prepared very thoroughly, with a scientific structure, concretizing the Party and State’s guidelines and viewpoints on perfecting the institutional environment and creating a legal corridor for management and investment in enterprises, including military and defense enterprises.
The draft also inherits fundamental advantages and overcomes difficulties after ten years of implementing Law 69.
Deputy Minister Vu Hai San stated that the Ministry of National Defense defines the activities of military SOEs as being entirely for the country, simultaneously building defense potential and developing the national economy.
The Ministry has developed a proposal to rearrange military enterprises in the 2021-2025 period. As a result, there are now 54 enterprises with 100% state capital out of the initial 104 military enterprises. Among them, 40 enterprises directly serve national defense and security and operate in conjunction with military and defense tasks in three areas: the group of enterprises producing and repairing weapons and equipment and researching and developing the defense industry; the group of enterprises located in strategic areas, combining labor and production with protecting borders, islands, and territorial waters; and the group of military-economic enterprises.
“Each group of enterprises has its characteristics, so ensuring regulations on managing and using capital in these enterprises must meet the requirements, suit the practical activities of the army, promote socio-economic development, and ensure national defense and security,” said Deputy Minister Vu Hai San.
At the workshop, representatives of Viettel Military Industry and Telecoms Group, Tan Cang Corporation, and Military Bank, among others, directly contributed their opinions to the critical policy groups related to the activities of these enterprises, including policies on state capital management and investment in enterprises, state capital investment in enterprises, investment activities of enterprises themselves, rearranging and restructuring state capital in enterprises, the agency of the representative of the owner of state capital, and enterprise governance policies.
Nhat Quang
Prime Minister discusses investment, production, and business with 19 corporations and conglomerates
On the morning of February 5th, Prime Minister Pham Minh Chinh chaired a working conference with the State Capital Management Committee in Enterprises and 19 groups and corporations to discuss the implementation of production and business activities in 2024, as well as promoting investment for economic and social development.
Prime Minister holds meeting with 19 corporations, conglomerates to boost investments, manufacturing, and business.
On the morning of 5th February, Prime Minister Pham Minh Chinh chaired a working conference with the State Capital Management Committee for enterprises and 19 corporations and groups under its management to discuss the implementation of production and business activities in 2024 and promote investment for economic and social development.
Prime Minister Pham Minh Chinh: Corporations and State-Owned Enterprises must concentrate resources for investment and development
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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.
Empower Hierarchical Authorization, Corporations, Holding Companies Will be Independent and Accountable
The Ministry of Planning and Investment is finalizing a consultation process on the draft amendment to Government Decree No. 10/2019/ND-CP regarding the implementation of rights and responsibilities of state capital representatives. The revised decree aligns with the Prime Minister’s directive to enhance decentralization and delegation of power. Under this revision, State-owned enterprises, corporations, and conglomerates will operate with more autonomy and assume greater responsibility. The revised decree will be submitted to the Government in the near future.
