SOEs urged to uphold pivotal role in State-owned economic sector

Monday, 2017-01-09 11:05:54
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Head of the Party Central Committee's Economic Commission Nguyen Van Binh speaks at the event. (Credit:
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NDO – State-owned enterprises (SOEs) should continue to affirm their key role as prominent components in the State-owned economic sector by guaranteeing their effective operation, even in fields where profit is not the main objective.

The suggestion was made by Politburo member and head of the Party Central Committee's Economic Commission Nguyen Van Binh at a meeting held by the Party Committee of the Centrally run Business Bloc in Hanoi on January 9, reviewing the bloc’s operation in 2016 and launching tasks for 2017.

Speaking at the event, Politburo member Binh praised contributions by the bloc’s Party Committee in directing political work by corporations, banks and enterprises under the bloc.

Though budget revenues by the bloc in 2016 were lower than in 2015 due to the impact of lower oil prices, better performance by enterprises under the bloc was a highlight, especially service units such as VNPT, Vietcombank and Vietnam Airlines.

Total revenue is estimated at more than VND1.4 quadrillion (US$61.6 billion), accounting for 92.77% of 2015 figure, while contributing VND195 trillion to the State budget, equalling to 86.99% of that in 2015.

Business restructuring was drastically focused over the last year, creating an important step forward on equitisation and the divesting of non-core and improving business performance under the approved restructuring scheme.

Thanks to such efforts, only two out of all 33 businesses in the bloc recorded losses. They seriously fulfilled their obligations to the State and made an important contribution to national budget revenues, while taking a lead in the implementation of social welfare activities.

Statistics at the event show that the bloc’s total revenue in 2016 was estimated at over VND1.4 quadrillion. (Credit:

In addition to these achievements, Politburo member Binh also pointed out limitations and disadvantages exist for many years and in 2016 in particular, and due to inefficiency in business operations by a number of large enterprises in the bloc, several projects did not produce efficient results, corporate governance was limited and business restructuring was slow in comparison with the progress under the approved scheme.

He urged the implementation of the Party and State’s resolutions and policies on business operations and corporate restructuring, with a focus on building and implementing drastic synchronous restructuring schemes during the 2016-2020 period according to the overall plan to restructure SOEs.

He stressed the need to link the implementation of the restructuring scheme to supplement to a suitable business development strategy for 2016-2020 and the following years, with adjustments in line with the regional and global situation, the impacts from new-generation free trade agreements and issues of climate change and environmental protection.

The Party official also suggested the bloc’s Party Committee continue renovating its mode of leadership, ensuring businesses comply with the Party and State’s policies and laws, in which raising awareness and responsibility of the head in each unit under the bloc, and building professional staff capable of effectively running businesses.

He urged the bloc’s Party Committee to promote coordination with other Party Committees and relevant ministries and central agencies to enhance their leadership in the bloc, while enhancing research and advice on policies related to economic development, efficiency improvement for SOEs and Party organisational development model in businesses.