Plan being built to develop major SoEs

Hanoi (VNA) – A plan is being devised to develop large-scale State-owned enterprises (SoEs), especially multi-ownership ones, to promote their role in paving the way for and guiding businesses in other economic sectors.

There are seven SoEs initially proposed for the plan, including three in the hi-tech industry (Military Industry and Telecoms Group – Viettel, Vietnam Posts and Telecommunications Group – VNPT, and Vietnam Mobile Telecom Services Corporation – MobiFone), two in the renewable energy industry (Vietnam Electricity Group – EVN and Vietnam Oil and Gas Group – PetroVietnam), one in the seaport and logistics sector (Saigon Newport Corporation), and one in the finance – banking sector (Joint Stock Commercial Bank for Foreign Trade of Vietnam – Vietcombank).

Apart from total assets of over 20 trillion VND (870.6 million USD), other criteria for such firms include a market share of at least 30 percent, meeting competition regulations, a return on equity of more than 6, and good governance based on OECD principles.

Besides, the industries entitled to special mechanisms and policies are identified basing on their role in guiding the development of businesses, their importance in developing and orienting industries, and the necessity of the State’s presence in those sectors.

Speaking at a meeting in Hanoi on March 10, Le Manh Hung, Director of the Enterprise Development Agency under the Ministry of Planning and Investment, said the plan aims to develop some SoEs that are capable of paving the way for and guiding other firms, connecting with the private business sector, mastering technology, and forming innovation chains.

He explained that the “paving-the-way” enterprises are the new ones that meet the country’s development demand while the “guiding” companies are the ones that can form connectivity and value chains and promote innovation with the participation of firms in other economic sectors.

The general policies proposed in the draft plan accord with the country’s socio-economic development orientations and international commitments and also ensure fair competition, the official noted./.