Proposal to evaluate the performance of state-owned enterprises according to financial indicators

	The SOE block will basically complete the restructuring and transformation of ownership by 2025
	Divestment plans at State-owned enterprises attract little attention
	Completing the legal framework to develop and improve the efficiency of state-owned enterprises

Associate the development of state-owned enterprises with the implementation of the development strategy of sectors and fields of the economy. Picture for illustration: Thu Diu

In fact, state-owned enterprises (SOEs) are holding, managing and using large resources of the country but have not been able to mobilize and focus those resources for strategic investment projects, development priorities of SOEs in particular and of the country in general. The institution of management, allocation and use of resources in SOEs is clearly no longer appropriate.

According to Minister of Planning and Investment Nguyen Chi Dung, in state management, SOEs must be considered enterprises with full rights and obligations like other enterprises in the economy; operate according to market principles.

Therefore, SOEs must be given full business autonomy like other enterprises on the basis of specific development orientations, tasks and objectives assigned by competent state agencies; have clear property rights; be monitored, evaluated, inspected and examined according to the development orientation, tasks, and general goals; gradually reduce and eliminate inspections and valuations of production performance of SOEs and SOE managers according to specific projects and activities in order to promote autonomy, creativity and have a risk-taking mechanism in investment, research and develop new business fields and products suitable to the actual market situation.

In order to promote advantages, overcome limitations, take advantage of development opportunities, and realize the role and position of SOEs in the economy, Minister Nguyen Chi Dung proposed eight groups of specific solutions.

First, it is necessary to have specific solutions to promote advantages, effectively mobilize and exploit the resources that SOEs are managing and using. Research and build a system of mechanisms to both improve the effectiveness and efficiency of the rights of owners while creating favorable conditions for SOEs, especially large-scale SOEs, to have a leading role in key economic sectors, to have full autonomy, and to operate and compete equally with other enterprises.

Second, it is necessary to associate the development of SOEs with the implementation of the development strategy of sectors and fields of the economy. Clearly identify key industries and fields that need the presence of SOEs in line with the country's sustainable development orientation (such as renewable energy, high-tech industry, important national infrastructure).

Third, it is necessary to change awareness and views on equitisation and divestment of state investment in enterprises. The objective of equitisation and divestment is not to withdraw state capital from SOEs, narrowing the scope and size of the SOE sector, but to restructure the investment portfolio to improve the quality, efficiency and value of the state's investment in enterprises in general and of each SOE in particular.

Fourth, build and develop a synchronous national database system on SOEs and state assets to evaluate, monitor and supervise in order to strengthen the supervision of SOEs' operations immediately, detect risks, and prevent mistakes, losses and waste.

Fifth, ministries, branches and localities, especially the Committee for the Management of State Capital at Enterprises, need to change their working methods, proactively, fully and effectively implement the owner's rights at the enterprise in accordance with the provisions of law and international practices; not interfere in the business administration and management process at the enterprise.

Sixth, improve the state management of SOEs by assigning a ministry to act as the focal point for state management to supervise the operation of the owner's representative agency, set development orientations and improve the operational efficiency of SOEs.

Bright - Dark financial picture of State-owned enterprises

Finally, study the salary mechanism and policy associated with labor productivity and business efficiency of enterprises, especially for senior management of enterprises. Renovating the management of personnel, especially senior officials to recruit or hire high-quality staff, consider piloting foreign general directors at a number of economic groups and corporations.