State-owned economy - the dominant force - is an objective necessity.
(Baonghean)Recently, in many forums, meetings including those of the National Assembly, seminars, and in the media, there has been much discussion about the leading role of the state economy and state-owned enterprises. This is due to the inefficient operation of state-owned enterprises in recent times, causing significant losses and waste for the state, thus diminishing their leading role. Many argue that state-owned enterprises should not be considered leading, and that the state economy does not play a leading role. Conversely, other opinions attempt to explain and justify the leading role of the state economy.
The document from the 7th National Congress of Delegates' Mid-term Conference in 1994 stated: "The leading role of the state-owned enterprise sector is demonstrated in paving the way and supporting the development of other sectors, promoting rapid and sustainable economic growth, and serving as a powerful material tool of the State to regulate and guide the socialist-oriented market economy." From 2001 to 2010, the state-owned economy included: state-owned enterprises, enterprises of political organizations, and socio-political organizations operating under the Law on State-Owned Enterprises.
State-owned limited liability companies (SLLs) whose capital is owned by the State or political organizations, socio-political organizations operating under the Enterprise Law. Joint-stock companies that have been equitized from SOEs or a part of SOEs, operating under the Enterprise Law, where the State holds 51% or more of the shares, or the State holds controlling shares or special shares... From 2010 to the present, when the Law on SOEs was abolished, SOEs underwent transformation and operate under the Enterprise Law. The State-owned sector includes: SOEs with 100% state capital that have transformed their form under the Enterprise Law and the state capital and assets in other enterprises operating under the Enterprise Law. Other national funds and assets (financial and non-financial) owned by the State and administrative agencies, public service organizations, political organizations, socio-political organizations, and professional social organizations operating primarily based on the state budget...
The documents of the 9th National Congress (2001) stated: The state-owned economy plays a leading role in the national economy, serving as an important material force and a tool for the state to guide and regulate the macroeconomy. State-owned enterprises hold key positions, leading the application of scientific and technological advancements, setting an example in productivity, quality, socio-economic efficiency, and compliance with the law.
The state-owned economy is an open concept with a broad scope, and has been, is, and will continue to be the largest economic sector in Vietnam's national economy. This sector encompasses all material and economic resources owned by the entire population in various forms: state budget, state reserves, the right to issue bonds, the right to borrow ODA, receiving grants, allocating capital, public investment, implementing social policies, land value, mineral resources in the subsurface and territorial waters under Vietnam's sovereignty, etc. Within this, state-owned enterprises are only a component of the state-owned economy, not a distinct economic sector in itself.
The state economy is a historical category, closely linked to the State. The emergence of the state economy aims to serve the activities of state agencies and is the main content of state agency activities, because the state, in order to function, must govern society, with the economy as its central focus. Governing the state economy includes: firstly, formulating economic development policies; secondly, deciding on the material aspects of the main economic resources. Thus, the leading role of the state economy in a society with a state is natural, an inherent principle that arises with the state, just as a tree must have roots to grow; a tree cannot exist without roots, or without replacing them with other roots – that is its fundamental principle. Therefore, many articles asserting that the state economy remains dominant are unnecessary, because when the state is formed, the state economy will immediately emerge and play a dominant role associated with that state. It is impossible to replace its dominant position with another economy through will or law. As long as the state exists, the state economy will remain dominant, only to perish when the state itself perishes. Thus, we do not need to debate whether the state economy is dominant or not, nor do we need to regulate it in state documents.
However, currently, the state-owned enterprise sector still accounts for 45% of total investment capital, 70% of official development assistance, and utilizes 60% of loans from commercial banks. This is inconsistent with the development principles of a market economy. The state should retain control over certain sectors that serve the public good, eliminating all monopolies of state-owned enterprises, especially regarding state budget funds. The state should primarily focus on issuing policies to guide production, distribution, and consumption, creating conditions for healthy competition among enterprises, and promoting economic growth and social development.
Dr. Duong Xuan Thao
