Workers of Vietnam Electricity check the transmission system. Innovation has become a pressing need for State-owned enterprises to improve efficiency.

The Government recently issued Resolution No 161/NQ-CP to strengthen innovation and increase the operational efficiency of SOEs.

The resolution stressed that SOEs must take the lead in innovation and technology development, adding that each SOE must be an innovation centre.

Focus must be placed on developing a corporate ecosystem and building value chains. SOEs must be pioneers in the Fourth Industrial Revolution and be more proactive in international integration and extending global reach.

Co-operation among SOEs and other domestic companies must also be enhanced to improve links and establish domestic supply chains to reduce the dependence of foreign markets.

SOEs were also urged to prepare to take opportunities arising from free trade agreements to expand markets and consolidate Vietnamese brands in the world.

SOEs must play their roles in contributing to socio-economic development in difficult areas which were not attractive to private investment as well as in restructuring the economy, maintaining macro stability and ensuring security, including energy security, food security and environment protection.

The State must hold controlling stakes at State-owned commercial joint-stock banks.

For the power, food, telecommunications, national defence and security companies, and other social welfare companies, the State must hold the entire stakes.

SOEs must have strategies to promote the development of 5G technology, e-Government and smart cities.

The privatisation of SOEs must be associated with the innovation at SOEs.

The accountability of the managers of SOEs in privatisation, capital divestment and restructuring must be enhanced to ensure transparency and compliance with established regulations and the market principles as well as to prevent interest groups.

According to a recent Government report to the National Assembly, there were 818 SOEs as of the end of 2019 fiscal year, including 491 entirely State-owned firms and 327 partially owned by the State.

The State capital at 818 SOEs was estimated to exceed VND1.6 quadrillion (US$68.9 billion), up 4 per cent against 2019.

Forty-four out of the 491 entirely State-owned firms reported losses worth VND619 billion altogether.  VNS

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