Signals of "Spring" for the state-owned enterprise sector

	Proposing for state-owned enterprises to divest capital from loss-making enterprises
	PM chairs conference on State-owned enterprises’ operation plans for 2024

Many positive signals from the economy help make production and business in 2024 more favorable. Photo: PVN

In a recent sharing, Ms. Bui Thi Thanh Tam, Chairman of the Board of Members of Northern Food Corporation (Vinafood 1), said that 2023 has marked a year of comprehensive success for Vietnam's agricultural industry. with maintaining the highest growth rate in recent years. Of which, rice output reached 43.5 million tons, meeting domestic consumption and achieving a record rice export output of 8.3 million tons, earning 4.5 billion USD. With the opportunity to export rice being opened, Vinafood 1 leaders said that by the end of 2023, the Corporation has achieved and exceeded all the targets assigned by the State Capital Management Committee at Enterprises, including the following targets: in output and turnover reached 141% and 174%.

According to forecasts of the General Statistics Office, in 2024, global rice demand will remain high, the price is likely to remain above 600 USD/ton. Furthermore, in recent times, the Government, the Prime Minister and ministries have continuously issued instructions on measures to promote signing large long-term contracts. Ms. Tam said that the good sign is that in the last days of January 2024, Vietnamese businesses overwhelmingly won about 350,000 tons in Indonesia's 500,000 tons rice tender.

Also expecting a lot from export activities in 2024 and having had positive results right from the beginning of the year, PetroVietnam Ca Mau Fertilizer Joint Stock Company (PVCFC) under Vietnam National Oil and Gas Group (PVN) said that it is urgently preparing a shipment of high-quality fertilizer to officially export to the world's demanding markets, Australia and New Zealand. Currently, this company's Ca Mau fertilizer products are present in about 18 countries around the world, export output in 2023 will reach 344 thousand tons, export value will reach 136 million USD.

As for the parent company, in 2024, PVN sets the Group's revenue target to reach 734,200 billion VND, 56,500 billion VND higher than the 2023 plan; Profit before tax is 22,000 billion VND. At the conference to deploy tasks in 2024, PVN leaders assessed that 2024 will have many difficulties but the Group also has advantages thanks to promoting the expansion of scale in revenue, business infrastructure, and foreign relations to expand markets, institutions, and policies to gradually solve problems. Although the plan is as above, PVN leaders expect revenue to reach over 970,000 billion VND, even striving to reach 1 million billion VND.

With Vietnam Airports Corporation (ACV), ACV leaders said they have proposed solutions to implement production, business and development investment plans in 2024. In carrying out the task of structural investment Airport infrastructure in 2024, ACV focuses on important national projects and key transportation industry projects assigned by the Government and Prime Minister. In particular, right in the early days of 2024, the Corporation submitted its investment policy for the Ca Mau Airport expansion project with a total investment of 2,400 billion VND, with the goal of starting construction at the end of 2024, and completing it at the end of 2024. 2025.

Previously, in the last days of January 2024, the Committee for Management of State Capital at Enterprises issued a number of decisions assigning targets to evaluate enterprise performance in 2024 for a number of corporations and member corporations. For example, the parent company - Vietnam Tobacco Corporation was assigned a total revenue of 4,561 billion VND, after-tax profit of 780 billion VND, no overdue debts and a ratio of ability to pay due debts are larger than 1. With the parent company - Vietnam Chemical Group (Vinachem), the Committee assigned a total revenue of 778.6 billion VND, profit after tax of more than 480.4 billion VND, along with other Tasks such as ensuring product structure, ensuring resources to develop large-scale chemical industry projects, improving labor productivity...

It can be seen that businesses expect the economic recovery in 2024 to continue to support production and business activities. But with remaining difficulties and obstacles, businesses also want to have mechanisms and policies resolved.

Vinafood 1 leaders expressed that the Government and ministries and branches should soon complete the management mechanism of state-owned enterprises in the direction of decentralization and deeper decentralization of power to businesses, so that businesses can increase their proactiveness and adapt immediately with market fluctuations to produce and do business more effectively. This person explained that in the food industry, there are currently more than 200 exporters and a very large number of domestic food businesses. If the procedure is long and has many steps, it will cause businesses to miss many opportunities export rice abroad.

Recently, at the Prime Minister's conclusion announcement at the Conference, the Prime Minister worked with the Committee for Management of State Capital at Enterprises and 19 economic groups and state corporations represented by the Committee. Representing the owner on implementing production and business in 2024 and promoting investment in socio-economic development, the Prime Minister has requested to remove difficulties, free resources, and create favorable conditions for state-owned enterprises making development investments. Groups and corporations are tasked with production, business and development investment with financial targets, especially the state budget contribution to economic growth in 2024 must be higher than in 2023.