Support a requisite for effective SOE growth

How did global uncertainties affect state-owned enterprises (SOEs) under the management of CMSC in 2023?

Nguyen Hoang Anh, chairman of the Commission for Management of State Capital at Enterprises (CMSC)

In 2023, unpredictable global changes were seen. Some countries showed signs of economic recession, high inflation, tightened monetary policy, and fluctuating oil prices. There was also strategic competition among major countries, conflict in Ukraine, recent conflict in the Gaza Strip, and increased risks in the financial, currency, real estate, and corporate bond markets in many countries.

The economic decline from previous years due to the pandemic continues to negatively impact the entire domestic economy in all areas.

In that context, thanks to the leadership and direction of the Party, the National Assembly, and the government, as well as collaboration from ministries, agencies localities, and the business community, the country’s economic development 2023 has overcome difficulties, and is on the way of recovery.

The CMSC identified 2023 as a pivotal year with important significance in implementing the 13th Party Congress and National Assembly resolutions on the five-year socioeconomic development plan to 2025.

Last year the CMSC assigned tasks to SOEs and accompanied them to solve problems, and focus resources on production, business and investment for development. As a result, they completed their tasks in 2023, making important contributions to the country’s socioeconomic development.

A total of 15 out of 19 state-owned groups and corporations under the management of CMSC exceeded their revenue plans; 16 exceeded their pre-tax profit plans (only Vietnam Airlines reduced losses); and 16 exceeded the plan for the state budget contribution.

The total revenues of parent companies of 19 groups and corporations reached $47.89 billion, surpassing the 2023 plan by 5.15 per cent and approximately equal to the same period in 2022; before-tax profit reached $2.24 billion, excluding Vietnam Electricity, surpassing the 2023 plan by 66 per cent and was up 10.92 per cent on-year. Their state budget contribution hit $3.34 billion, surpassing the 2023 plan by 100 per cent, up 20.22 per cent on-year.

In terms of development investment, a number of key national transportation infrastructure projects have made significant contributions to economic development, contributing to building a synchronous infrastructure system as identified by the 13th National Party Congress as one of three strategic breakthroughs.

They included two packages of the Long Thanh international airport project, and the Terminal 3 of the Tan Son Nhat International Airport, Terminal T2 of Phu Bai International Airport, the Dien Bien Airport upgrade and expansion project among others.

In 2023, many transport and energy infrastructure projects were also completed, while some others had obstacles and difficulties dealt with, such as the Ben Luc-Long Thanh Expressway, the Thi Vai liquefied natural gas import warehouse with capacity of one million tons (completed and put into operation in October 2023), the construction of container terminals 3 and 4 at the Haiphong International Gateway Seaport, the expansion of international terminal T2 at Noi Bai International Airport.

Key projects in the energy sector included the Thai Binh 2 Thermal Power Plant put into operation in April 2023, and the Long Phu 1 Thermal Power Plant.

Last year, the commission took a number of solutions and measures to help member businesses solve their difficulties and sluggish projects, especially those in the trade and industry sector.

What will the CMSC focus on to support state-owned groups in making breakthroughs and developing sustainably?

The tasks and goals set for the commission and its member groups in the coming years are significant and have important implications for the strategies set out by the Party and the state. We will make strong effort to urgently implement tasks and solutions and continue to perfect the commission as a government agency.

We will coordinate with other management agencies to direct businesses to comply with the requirements of the government, and coordinate with state management agencies to complete policies and planning to create better conditions for businesses

There will be a focus on strengthening and creating initiative for businesses and representatives of state capital in businesses to coordinate and support businesses to operate effectively. In principle, this will not interfere with production, business and investment activities of enterprises.

Studying, contributing ideas, and reporting to competent authorities to amend and supplement provisions to promote assignment and decentralisation to the commission and its businesses to increase proactivity will also be a focus.

In addition, the CMSC will continue to improve working methods; build and perfect internal management institutions to ensure consistency and efficiency; and improve the quality and professional qualifications of staff, and prioritise recruiting officials with in-depth expertise in economic, technical and investment fields to enable the commission to better fulfil its mandate.

Strengthening coordination with ministries, and state management agencies in the directing enterprises to fully ensure assigned strategies, plans, and tasks is vital.

Finally, we will propose amendments to regulate investment capital sources among SOEs; connect business activities among groups and corporations; as well as mobilise and supplement qualified and competent staff among businesses and between the commission.

What are the advantages and challenges you forecast in 2024? And what are the CMSC’s solutions to make a successful year?

According to forecasts, in 2024 the global and domestic situation will continue to develop with many risky, complex and unpredictable factors. Therefore, to fulfil the goals and tasks set for this year, the commission and its SOEs need to make great effort to overcome problems, while seizing opportunities to promote business and investment.

With experience, determination, a keen sense of responsibility and growth momentum from 2023, the commission and 19 SOEs will try to complete all tasks successfully, with the special attention given to several key issues.

Firstly, there will be coordination with ministries and agencies to review legal problems when performing the functions, tasks and powers of the commission to propose authorities, complete and improve the legal system.

Second, we should direct the 19 SOEs to implement five-year strategies and plans on production, business, and investment for development, and the approved restructuring scheme, contributing to the successful implementation of the annual and five-year production, business, and investment plans.

Third, it is vital to ensure the proactive coordination with ministries and agencies in dealing with obstacles for projects which have faced difficulties for many years, as well issues facing SOEs in their production, business, and investment activities.

Finally, we must continue to improve our working methods, and perfect internal management regulations to ensure unified and effective operations, all while improving the quality and professional qualifications of the staff of the commission and SOEs.

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