Under the Government’s Resolution 68 on the enhancement of the effectiveness and mobilization of resources of State-owned enterprises, the Government expected all State-run companies and groups to have new projects, including typical ones featuring the brands of State-owned enterprises, by 2025. In addition, all State-owned firms will shift their investments to projects using green and clean technologies and reducing carbon emissions.

The Government also expected the contribution of these enterprises to the State budget in the 2021-2025 period will increase 5%-10% over the 2016-2020 period.

State-owned enterprises accounted for some 0.08% of the total operational firms but 7% of the total asset value and 10% of the total equity of enterprises as of the end of 2020, according to statistics from the Ministry of Finance.

They also made up nearly 26% of the total capital for production and business and over 23% of the fixed asset value and long-term financial investment of all operational enterprises.

In 2020, wholly State-owned enterprises contributed nearly VND241.73 trillion (US$10.4 billion) to the State budget.

The Hochiminh Stock Exchange has had 49 enterprises with a market capitalization of over US$1 billion each as of March 2022, including some State-owned enterprises, such as Vietcombank with VND388.54 trillion, BIDV with over VND220 trillion, VietinBank with over VND155.9 trillion, Vinamilk with nearly VND169.1 trillion, and Bao Viet with some VND45.7 trillion.

The Government also assigned State-owned enterprises to study the investment in some important projects, prioritizing those in renewable energy, semiconductor industry, digital transformation and climate change adaptation infrastructure, input material supply, and traffic infrastructure projects, including expressways, railways, airports and seaports.

The cooperation between State-owned and private enterprises should be enhanced to conduct large projects and improve the effectiveness of projects and supply chains of sectors.

The Government asked the State Capital Investment Corporation to improve its role as the Government’s investor.

To increase the capability and efficiency of State-owned enterprises’ production and business activities, the Government will ask them to divest from sectors which are not their main business lines.

Moreover, State-owned enterprises need to prevent the group interest, optimize capital and land resources and apply new business models to improve their capacity and competitiveness.

Source: Saigon Times