State-owned firms asked to help motivate growth of other economic sectors

Prime Minister Pham Minh Chinh addresses the working session (Photo: VNA)

Hanoi (VNA) – Prime Minister Pham Minh Chinh has asked the Commission for Management of State Capital at Enterprises (CMSC) to build and implement future development strategies for State-owned groups and corporations under its management, with a view to better clarifying their role in leading, motivating and promoting the growth of other economic sectors.

Speaking at a working session with the commission and 19 groups and corporations under its management in Hanoi on February 5, PM Chinh instructed that the commission should focus on removing legal obstacles to create a favourable legal framework for the SOEs, while intensifying supervision and power control. 

He required that the SOEs must pay more attention to investment in development with clear focus and priority, and restructure their administration, finance, input materials and fields of operation in line with the development trends. 

The CMSC and the 19 State-owned groups and corporations must strictly follow conclusions and resolutions of the Party Central Committee, the National Assembly and the Government in implementing their goals and tasks for 2024, the PM said, adding that the groups and corporations must operate in line with the socialist-oriented market mechanism. 

Illustrative image (Source: VNA)

Last year, the total revenue of the 19 groups and corporations reached nearly 1.13 quadrillion VND (46.34 billion USD), equivalent to 105.15% of the yearly plan.

Their combined pre-tax profit hit 53.25 trillion VND (excluding Vietnam Electricity) was equal to 166.09% of the 2023 plan and 110.92% compared to the same period in 2022. The groups and corporations paid 79.25 trillion VND to the State budget, reaching 199.96% of the plan for the year and equivalent to 120.22% of the figure recorded in the same period of 2022.

Particularly, of the 19 groups and corporations, 15 completed and surpassed their revenue plans, 16 reached and exceeded their pre-tax profit plans, and 16 completed and surpassed their State budget payment plans.

However, PM Chinh pointed out that the firms have shown a number of shortcomings, including limited development investment, inadequate contributions to the GDP compared to asset values, and modest business and investment efficiency.

He demanded that ministries, sector and the CMSC coordinate closely to promptly handle problems related to the enterprises. 

At the same time, the PM emphasised the need to prevent and combat corruption, negative phenomena and group interest, and improve the living conditions for labourers.

He also reminded the groups and corporations of the need to ensure the supply of electricity, coal, petrol, and materials for production industries as well as transportation activities and national security and defence./. 

VNA