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State-owned enterprises need to do big, difficult things

HANOI (Sputnik) - It is estimated that the total revenue of the entire SOE sector in 2023 will reach 1.41 million billion VND, an increase of 4% compared to the plan. The total pre-tax profit is estimated at 117,388 billion VND. The resulting loss is estimated at 41,666 billion VND, mainly from EVN and Vietnam Airlines Corporation.

On September 14, Prime Minister Pham Minh Chinh presided over a Standing Government conference to collaborate nationally with State-owned companies (SOEs) on ideas to enhance production, business, and investment development.

At the beginning of the conference, Prime Minister Pham Minh Chinh and delegates observed a minute of silence to commemorate the victims who died in the fire in Hanoi and the 7 victims who died from flash floods in Lao Cai on the night of September 12. early morning September 13.

According to a Ministry of Planning and Investment report, the country has nearly 680 SOEs. Of these, 478 enterprises with 100% charter capital held by the State, accounting for nearly 6% of the country's enterprises, and 198 enterprises with the State holding controlling shares, accounting for nearly 2.4%.

680 SOEs hold an amount of assets greater than 3.8 million billion VND. Particularly, 478 enterprises have 100% charter capital held by the State with a total capital of over 1.55 million billion VND, accounting for about 7% of total assets and 10% of equity capital, 25.78% of total production and business capital and 23.4% of the value of fixed assets and long-term financial investments of all enterprises nationwide.

By the end of 2022, the total assets of SOEs will reach 3.8 million billion VND, an increase of 4% compared to 2021. State capital invested in SOEs is 1.69 million billion VND, an increase of 3% compared to 2021. 

Notably, 64/676 businesses incurred losses of 29,456 billion VND; 144/676 enterprises (accounting for 21% of the total number of SOEs) have a total accumulated loss of 69,892 billion VND. SOEs have liabilities of 1.98 million billion VND, an increase of 6% compared to 2021.

In the first 6 months of 2023, the total revenue of SOEs across the country is 689,534 billion VND, reaching 50% of the 2023 plan. Earned profit before corporate income tax is 67,403 billion VND, reaching 63% of the plan 2023.

The total loss incurred by the entire SOE sector is 33,639 billion VND, mainly concentrated in central enterprises such as EVN, which incurred a loss of 32,055 billion VND; Airlines Corporation incurred a loss of 1,317 billion VND.

Also read: Pre-tax profit of 18 SOEs above expectations » Vietnam News - Latest Updates and World Insights |

According to the Ministry of Planning and Investment, it is estimated that the total revenue of the entire SOE sector in 2023 will reach 1.41 million billion VND, an increase of 4% compared to the plan. The total pre-tax profit is anticipated to be 117,388 billion VND; losses are estimated to be 41,666 billion VND, primarily from central companies such as EVN: 37,062 billion VND; and Vietnam Airlines Corporation: 4,515 billion VND.

After listening to the report, the Prime Minister emphasized that for SOEs to truly become "an important material force of the state economy" leading other economic sectors, it is necessary to identify bottlenecks in the mechanism, policies for this business sector, limitations within the business itself, from which to propose innovative directions and solutions to improve the efficiency of resource use at SOEs.

The Prime Minister asked the delegates to focus on discussing and clarifying the following issues: Firstly, it is necessary to properly identify and evaluate the position and role of SOEs today, thereby clarifying the goals of arranging and reforming the sector. SOE sector by the actual situation of Vietnam. This is also the work to organize a preliminary review and comprehensive assessment of the implementation of Resolution No. 12-NQ/TW on continuing to restructure, innovate and improve the efficiency of SOEs to report to the Politburo. Consider and submit to the Central Executive Committee term XIII.

Also read: PM urges increased competitiveness, efficiency of SOEs » Vietnam News - Latest Updates and World Insights |

Second, it is necessary to more clearly evaluate the investment implementation situation and investment efficiency of SOEs in recent times to identify problems and difficulties that need to be resolved. What difficulties come from policy institutions, what difficulties come from the implementation stage from which to advise the Government and the Prime Minister on policy decisions to free up resources, create breakthroughs, and develop and promote the role of SOEs with the motto "earliest - most effective" and "harmonious benefits, shared risks".

Third, identify priority investment sectors and fields for central and local SOEs in the coming period. SOEs need to do big, difficult, and new things to create motivation for economic development. Fields such as offshore wind power, green hydrogen or semiconductor industry... require the participation of SOEs, especially large-scale SOEs...

The Prime Minister emphasized the spirit of "There is a way to climb even in high mountains/Even if the road is dangerous, there is a path".

The Prime Minister hopes that delegates will discuss and find solutions to promote better socio-economic development, focusing on growth drivers, especially investment.

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