The closing ceremony of the fifth plenary meeting of the 12th Communist Party of Vietnam (CPV) Central Committee (Source: VNA) At this meeting, the Party Central Committee approved a number of resolutionsand conclusions, especially three resolutions on “completing thesocialist-oriented market economy institution”, “continuing to re-organise,renovate and improve the efficiency of State-owned enterprises” and “developingthe private economy into an important driving force of the socialist-orientedmarket economy”.
The committee agreed that the socialist-oriented market economy is a basictheoretical and practical issue in the country’s economic development policy, anew creation of the Party on the general economic model in the transitionalperiod to socialism in Vietnam.
The socialist-oriented market economy Vietnam is building is an economyoperating fully and synchronously in line with the rules of the market economywhile ensuring socialist orientations suitable to each development stage of thecountry.
It is a modern and internationally integrated economy put under the managementof the socialist law-governed state led by the CPV, for the goal of “prosperouspeople, strong country, and democratic, equitable and civilised society”.
In his closing speech, Party General Secretary Nguyen PhuTrong stated thatbuilding and completing the socialist-oriented market economy institution is astrategic task and an important breakthrough, creating a momentum for the rapidand sustainable socio-economic development.
The economy institution perfection must be coupled with renovating andcompleting the organisation and personnel apparatus of the whole politicalsystem; clearly defining and seriously performing the position, role, functionsand relations between the State, the market and the society in conformity withthe market economy; ensuring socialist orientations; and maintaining andenhancing the leadership role of the CPV.
The Party chief stressed that during the implementation of the Resolutions ofthis meeting, the entire political system needs to continue reaching consensuson the socialist-oriented market economy while paying attention to leading andinstructing the synchronous and drastic implementation of the set tasks andmeasures.
“In this tenure, we have to focus on performing well five focal tasks,including completing the institution on mobilising, allocating and effectivelyuse resources and the institution on distributing outcomes to liberateproduction force, create momentums and resources for growth and development,ensuring social progress and equality, national security and defence,” henoted.
It is necessary to complete the institution on improving the business andinvestment climate, with breakthrough policies to remove difficulties forbusinesses and facilitate their development on the basis of stepping upadministrative and judicial reforms synchronously, he said.
“While perfecting the institution on science-technology application anddevelopment, education and training and human resources development, especiallyhigh-quality personnel, in order to take advantage of the achievements of thefourth Industrial Revolution; we should renovate the growth model and increaseproductivity, quality and competitiveness of the economy.” he added.
Party leader Trong also noted the need to renovating the role and functions,and improving the management efficiency and effectiveness of the economy andthe State’s capacity to create development, especially the ability toinstitutionalise the Party’s guidelines and organise the implementation ofState policies and laws.
“We must renew the leadership methods of the Party, perfect the institution oncontrolling power, streamlining the personnel apparatus, building a contingentof capable and virtuous cadres who meet requirements and tasks; and improve thequality and efficiency of the operation of the entire political system,” hesaid.
The committee agreed that despite shortcomings and weaknessneed fixing, State-owned enterprises (SOE) have showed efforts to improveproduction and business by renovating themselves, which has showed fruitfuloutcomes.
Along with policies and mechanisms, SOE is an important toolfor the State to ensure the effective implementation of macro-economic policiesand settlement of market fluctuations and the controlling of inflation.
The SOEs have also largely contributed to the socio-economicinfrastructure construction and development, helping transform the economy,while serving as a great income source to the State budget and helping fulfildefence-security tasks and ensure social welfare.
Party General Secretary Trong clarified that in the future,it is crucial to continue paying due attention to leading and directing therestructuring and renovation of SOEs, thus enhancing their effectiveness andpromoting their key role in State-owned economic sector.
At the same time, it is necessary to strictly implementorientations, policies and new breakthroughs recently adopted by the PartyCentral Committee, he said.
He highlighted the need of shifting the majority of SEOsinto those with combined ownership structure, mostly joint stock companies, andposting their shares to the stock market to optimise economic effectiveness.
The Party leader also urged thorough handling of ineffectiveand loss-causing groups, corporations, enterprises and projects, even byannouncing their dissolving and bankruptcy.
Meanwhile, the restructuring and renovation of SOEs mustmeet international standards on business governance, thus driving them to themarket mechanism towards self-reliance, self-responsibility and equalcompetition with businesses from other economic sectors in line with the law,ensuring openness, transparency and accountability, he stated.
He also asked for the continued reforming of SOEs to improvetheir management efficiency as well as close monitoring over their operations,preventing losses and wastefulness of State capital and property.
He underscored clarifying the State functions of managing all business forms ingeneral enterprises and State capital contribution to businesses, adding that itis necessary to promptly complete the model of managing, monitoring firms and Statecapital. By 2018, a specialised agency will be formed to represent Stateownership in SOEs, joint stock companies and State capital, he said.
The Party leader also request effective measures to preventthe forming of “interest group” and “backyard” controlling operations of SEOsfor private benefits and corruption, causing losses to the State andenterprises, he said.
Over the past 30 years of doi moi (renewal), the private economic sector has played animportant driving force for the development of the socialist-oriented marketeconomy in Vietnam. The private sector accounts for 39-40 percent in the GDP,with the formation of several major private economic groups and the increasingnumber of entrepreneurs.
In the coming time, the entire political system must spareno effort to promote attainments and surmount shortcomings while implementingpolicies developed at the meeting, the committee requested.
The committee stressed the need to continue renewingthinking and raising awareness of the private economic development, consideringit a necessary requirement during the development process of thesocialist-oriented market economy.
The committee asked to pay heed to developing the privateeconomy in a fast, healthy and more appropriate manner so as to become animportant momentum for production and socio-economic development, along withthe State economy and collective economy to ensure the successful building ofan economy of independence, self-reliance and international integration.
Besides, the committee underlined facilitating the privateeconomic sector’s development in all areas and promoting the development of allconnectivity forms of production, business, and goods and service provision inthe production network and market value chain between the private economy andState economy, collective economy and foreign-invested businesses to receiveand transfer advanced technology and modern governance.
It is necessary to improve performances of small- andmedium-sized enterprises, renovation businesses and startup movements,facilitate households and individuals’ voluntary connection to form firms orother cooperation forms as well as encourage individuals to jointly makefinancial contributions to set up private economic groups as well as to stateeconomic groups, capable of joining regional and global production network andvalue chain, the committee stressed.
The Party chief emphasised that the State and the contingentof cadres and public servants need to make a breakthrough in thinking andaction, and accelerate administrative reform to facilitate the privateeconomy’s development, while strengthening inspection and supervision.
Entrepreneurs and enterprises should be more active and proactivein business management, improving performance and competitiveness of theirfirms, while increasing production connectivity, joining local, regional andglobal production chains along with focusing on human resources development,research and application of science-technology.
He stressed the strict observation of law, especially legalregulations on corporate social responsibility, protection of legal andlegitimate rights and interests of labourers, environmental and naturalresources protection, and ensuring food hygiene and safety.
The committee asked the Political Bureau and the Secretariat to take morecomprehensive and drastic leadership, and show stronger resolve in order tofulfill set tasks and effectively address pressing issues which are of publicconcern.
The move also aims to reinforce the confidence among officials,Party members, and public in the Party.
At the plenary meeting, the committee gave an officialwarning and dismissed Dinh La Thang, a Politburo member and Secretary of the HoChi Minh City Party Committee, from the Politburo of the 12th Party CentralCommittee for his past financial wrongdoings as head of the National Oil andGas Group (PetroVietnam).
The committee concluded that Thang had committed “veryserious wrongdoings and violations in management” as a member of the 10thCentral Committee of the Communist Party of Vietnam, Secretary of the PartyCommittee and Chairman of the Board of PetroVietnam from 2009-2011.
It said the wrongdoings and violations have hurt thereputation of Party organisations, his personal reputation and caused a loss ofconfidence among the people and other Party members.
Closing the meeting, Party General Secretary Nguyen PhuTrong said three resolutions adopted at the meeting are significant to carryout key tasks on socio-economic development set by the 12th Party Congress.
He said the report reviewing the leadership of the PoliticalBureau and Secretariat in 2016 and the discipline against Party officials withmisdeeds will likely contribute to consolidate confidence among Partyofficials, members and public in the Party.
The Party chief called on each member of the committee tobring into full play their role and responsibility, together with all-levelParty committees and authorities, to instruct the implementation of the 12thParty Congress’s Resolution and other resolutions as well as conclusions of thecommittee./.
