The leading role of the state economy needs to be further specified and promoted to its proper extent.
In the current context, when the global economy is moving rapidly under the impact of digital transformation, the fourth industrial revolution and the requirement of green and sustainable development - the leading role of the state economy needs to be concretized and promoted to its full extent. This not only requires adjustments in organization and operating mechanisms, but more importantly, a new, comprehensive and substantive approach to institutional awareness and design.
At the National Conference to disseminate and implement Resolutions 66-NQ/TW and 68-NQ/TW dated May 18, 2025, General Secretary To Lam pointed out the requirement: "The transformation of the growth model must be based on science and technology, innovation and artificial intelligence." This is a fundamental orientation, setting out a pioneering role for the state economic sector in new, strategic and leading fields.
In his speech on January 6, 2025, Prime Minister Pham Minh Chinh also emphasized: "Arrange so that state capital is best managed and developed."
In that spirit, proposing breakthrough solutions to improve efficiency and promote the leading role of the state economy not only has the meaning of reforming organization and administration, but is also a decisive factor in the process of developing the country in a more autonomous, creative and sustainable manner in the coming period.
Improving the efficiency of the state economy through institutional reform and implementation organization
For the state economy to play a leading role in the socialist-oriented market economy, the prerequisite is to strongly reform both the institutions and the implementation mechanism. The task is no longer to manage state enterprises as administrative units, but to restructure the management mindset: from "enterprise management" to "national asset management".
Prime Minister Pham Minh Chinh: State-owned enterprises must be more proactive, pioneer digital transformation and promote growth - Photo: VGP/Nhat Bac
The focus of reform must revolve around three key breakthroughs:
First, establish a modern, digital and effective national asset management system. The State needs to build a unified "national asset balance sheet" in which all public assets - from capital contributions, land, infrastructure, resources to shares in enterprises - are clearly identified, digitized, classified and priced according to market mechanisms. Assets that serve public purposes must be used properly; assets put into business must be responsible for generating profits and subject to public supervision. This is the foundation for transforming the state economy from a scattered burden into a strategic, focused and measurable investment force.
Second, instead of re-establishing a state capital management agency, it is necessary to build a specialized institution for public asset management. Based on the experience gained from the dissolution of the State Capital Management Committee, it is possible to redesign the public asset management model in a streamlined, efficient manner and integrate it into a highly specialized focal point within the Ministry of Finance. government, or pilot the model of "National Asset Investment Corporation" operating according to market standards, separate from policy-making agencies.
This institution does not need to play an administrative role but operates according to the principle of a strategic investment enterprise, has a Board of Directors, independent audit and is accountable to the Government and the National Assembly. Handing over capital management to each ministry as before will make it very difficult to ensure the principle of separation of ownership - management - supervision, and easily lead to conflicts of interest.
Third, the state economy must take the lead in innovating the growth model. The leading role of the state economy no longer lies in its scale, but must be demonstrated in its ability to pave the way, create and lead development, especially in the following areas: Core technology, big data and AI; Semiconductor industry, renewable energy, environmental industry; Digital infrastructure, strategic infrastructure, green and circular economy sectors.
Instead of competing with the private sector in mass market sectors, the state economy needs to focus on areas where the private sector is not ready or capable of participating.
Promoting the leading role of the state economy is also a decisive factor in the process of developing the country in a more autonomous, creative and sustainable manner in the coming period.
Building an institutional ecosystem for the leading role to operate effectively and substantially
The leading role of the state economy – if not supported by a suitable institutional ecosystem – will only be a formal proposition, easily leading to distortions in implementation. For this role to function properly, a solid “three-legged” institutional structure is needed: transparent laws, professional enforcement organizations and modern supervision mechanisms.
First, the legal system must define clear boundaries and standards of behavior. Currently, the law on the management and use of state capital and assets in enterprises is still scattered and lacks a unified framework. The Law on Management and Use of Public Assets and the Law on Enterprises do not clearly distinguish between assets used for production and business (forming the state economy) and assets belonging to the public interest and public administration. As a result, the governing body both makes policies, owns, and supervises - leading to conflicts of interest and easy arbitrary intervention.
It is necessary to promulgate a "National Asset Management Law" or amend the Law on Management and Use of Public Assets in a modernized direction: focusing on efficiency of use, investment value and accountability. Standards such as separation between ownership and management functions, market principles in investment, asset risk handling mechanisms... must be clearly and consistently legalized.
Second, the implementation organization needs to be professionalized and de-administrated. As mentioned in the previous section, instead of an administrative capital management structure - where ministries and branches own, manage and operate - it is necessary to establish specialized focal points with clear functions and governance according to market principles.
In addition, state-owned enterprises need to be equitized or restructured into public companies, applying best corporate governance practices (OECD, G20), and being closely monitored by independent organizations such as state audit, non-executive board of directors, and transparently reporting to the public. Avoid the situation of "both playing football and blowing the whistle" in the internal system.
Third, the monitoring mechanism must be modern, transparent and linked to national efficiency. State economic monitoring cannot stop at periodic inspections or handling of violations, but must be upgraded to a strategic warning system, capable of measuring the efficiency of public asset investment in real time.
To do so, it is necessary to establish a national digital data platform on public assets, connecting information between the Ministry of Finance, localities, state-owned enterprises and supervisory agencies. Institutions also need to encourage the supervisory role of the National Assembly, the Fatherland Front and the press – as “gatekeepers” to help ensure accountability and limit privileges.
The leading role of the state economy must be demonstrated in its ability to pave the way, create and lead development, especially in the fields of: Core technology, big data and AI...
Developing innovation momentum in the state economic sector
In the context of Vietnam accelerating the transformation of its growth model towards productivity, science and technology and innovation, the state economic sector cannot continue to operate in the old way - focusing on administrative management, planned allocation and relying on public assets. To maintain its "leading" role, this sector must become one of the strongest sources of innovation, with the ability to lead the new development model, and cannot be a low point of reform.
First, establish a mechanism to prioritize investment in strategic, spillover and potentially high-risk areas. The state economy needs to take the lead in areas such as renewable energy, semiconductor technology, artificial intelligence, green manufacturing, digital data infrastructure, etc. These are all fundamental areas for sustainable growth but are not attractive enough for the private sector due to large capital, high risk, and long payback periods.
To do this, it is necessary to form state-owned strategic investment funds, operating according to market principles and professionally managed, to pour "seed" capital into projects with breakthrough potential, thereby unblocking private capital flows and attracting international investment.
Second, restructure state-owned enterprises towards innovation. State-owned enterprises must escape the "play it safe" business mindset, only playing the role of maintaining market share, making short-term profits, and preserving capital. Instead, they must be redesigned as "creative enterprises" - places that actively research and test new models, new products, and new technologies.
To promote this, the Government should stipulate a minimum proportion of R&D budget in state-owned enterprises and issue an innovation capacity assessment index as an annual ranking criterion. Enterprises with outstanding innovation achievements should be recognized, honored and given greater autonomy.
Third, develop data infrastructure and public knowledge sharing mechanisms. State-held data assets – such as traffic, land, climate, industry, and population data – must be digitized and controlled access extended to startups, research institutes, and the private sector, thereby turning public data assets into platforms for social innovation.
Along with that, it is necessary to build national innovation technology zones, where state-owned enterprises play the role of "anchor tenant" - the leader, cooperating and sharing infrastructure, technology, and human resources with smaller businesses in the innovation value chain.
The leading role of the state economy must be demonstrated in its ability to pave the way, create and lead development, especially in the fields of environmental industry, green and circular economy sectors.
Create a fair competitive environment and promote market leadership
The state economy cannot play a leading role without contributing to building a healthy market, fair competition and the ability to lead the development of the ecosystem. This is the fundamental condition to ensure that resources in the economy, including capital, labor, and technology, are allocated effectively, without being distorted by privileges or benefits.
First, put an end to the mechanism of "both playing football and blowing the whistle". The state economy can only play its role if it is clearly separated from the state management function. It is impossible for ministries and sectors to both develop policies and directly direct or benefit from enterprises under their management. This not only causes conflicts of interest, but also creates a non-market preferential ecosystem, distorts competition and weakens the private sector.
To solve the problem at its root, it is necessary to establish an independent mechanism for public asset management and representation of state capital ownership – through a specialized agency that operates transparently and is closely monitored by the National Assembly, the State Audit Office and the public.
Second, build a "playing field" with strict and fair rules. All enterprises - regardless of state or private ownership - must comply with the same set of rules on taxes, investment, bidding, land, environment and social responsibility.
Third, shift from monopoly to cooperation and diffusion. Large-scale, strong state-owned enterprises need to be oriented to develop according to the "value chain leadership" model - not only doing business for their own profit, but also supporting the development of satellite enterprises, small and medium-sized suppliers, especially in supporting and innovative industries.
Instead of taking advantage of their position to compete unfairly, state-owned enterprises need to play the role of sharing, cooperating and creating spillover effects - in line with the mission of an economic force owned by the entire people.
Environmental and social responsibility (ESG) should be considered a mandatory obligation of all state-owned enterprises.
Innovate the performance measurement mechanism and establish a modern monitoring system
One of the reasons why the state economy has not yet demonstrated its leading role is the lack of a clear mechanism for measuring performance and a real monitoring system. Without proper measurement, it is impossible to manage properly; without transparent monitoring, it is impossible to expect efficiency improvements.
First, shift from "input management" to "output evaluation". Instead of focusing only on formal indicators such as revenue, total assets or number of employees, it is necessary to shift to evaluating efficiency based on social output and value created for the economy. Necessary indicators must include:
1. Efficiency of capital and public assets use (ROA, ROE);
2. Level of contribution to GDP growth, creating high-quality jobs ;
3. Ability to lead innovation, invest in R&D, and develop core industries ;
4. Spillover effects on the private sector and crisis resilience .
These criteria not only measure business performance, but also reflect the strategic role that the state economy needs to shoulder.
Disclosure of financial, performance, social and environmental (ESG) information should be made mandatory for all state-owned enterprises. This transparency not only creates pressure for improvement, but also restores public trust in the state-owned economic sector, which has been questioned due to some cases of weakness and large losses.
Third, apply digital technology and big data to monitor public assets. National assets – including land, equity, strategic infrastructure – need to be digitized, identified, assigned management codes and monitored in real time. This data platform must be linked to the systems of the State Treasury, the Tax Department, the Business Registration Department, the State Bank, etc. to help supervisory agencies assess risks, trace capital flows and detect early signs of loss.
Applying digital technology is also an effective way to control conflicts of interest, transfer pricing and manipulation of public assets – issues that are difficult to check manually.
To go far, one must have a strategy, to go fast, one must have determination, and to go right, one must have awareness. The state economy – if “reshaped” according to a new spirit, new institutions and new operating methods – can absolutely become a solid pillar for a self-reliant, innovative and prosperous Vietnam in the 21st century .
Dr. Nguyen Si Dung
Source: https://baochinhphu.vn/giai-phap-dot-pha-cho-kinh-te-nha-nuoc-102250727055258313.htm
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