State economy - the main objective necessity

(Baonghean) -Recently, in many forums, meetings including the National Assembly meetings, seminars, and mass media, there have been many discussions about the key issues of the state economy and state-owned enterprises. Because state-owned enterprises have been operating inefficiently in the past, causing great loss and waste to the state, the key role of state-owned enterprises has not been demonstrated. There are many opinions that state-owned enterprises should not be considered the key, that the state economy does not play a key role, and on the contrary, there are also opinions that seek to explain and prove the key role of the state economy.

The document of the 7th National Congress of Delegates in 1994 stated: "The leading role of the state-owned enterprise sector is to pave the way and support the development of other components, promote rapid and sustainable growth of the economy, and be a tool with the material strength of the State to regulate and guide the socialist-oriented market economy". From 2001 to 2010, the state audit included: state-owned enterprises, enterprises of political organizations, political and social organizations operating under the Law on State-owned Enterprises.

Single-member LLCs whose capital owners are the State or political organizations, socio-political organizations operating under the Enterprise Law. Joint-stock companies equitized from state-owned enterprises or a part of a state-owned enterprise, operating under the Enterprise Law in which the State holds 51% or more of shares or the State holds controlling shares or special shares... From 2010 to present, when the State-owned Enterprise Law was abolished, state-owned enterprises were transformed and operated under the Enterprise Law, the State Audit Office includes: 100% state-owned state-owned enterprises that have transformed their forms under the Enterprise Law and 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 agencies, political organizations, socio-political organizations, socio-professional organizations operating mainly on the State budget...

The 9th Congress Document (2001) stated: The state economy plays a leading role in the economy as an important material force and a tool for the state to orient and regulate the macro economy. State-owned enterprises hold key positions, take the lead in applying scientific and technological advances, and set an example in productivity, quality, socio-economic efficiency, and law compliance.

The State economy is an open concept with broad connotations, which has been, is and will be the largest economic sector of the national economy in Vietnam. This is the sector that covers all material and economic facilities owned by the people in many forms: state budget, state reserves, the right to issue bonds, the right to borrow ODA, receive funding, allocate capital, invest in public investment, implement social policies, land value, underground mineral resources, territorial waters under Vietnam's sovereignty... In which, state-owned enterprises are only a component part of the state economy, not an economic component.

State economy is a historical category, closely associated with the State, the birth of the state economy is to serve the activities of state agencies and is the main content of the activities of state agencies, because the state wants to operate, it must manage society, in which the economy is the focus. Managing the state economy includes: First, proposing economic development policies; second, deciding on the material aspects of the main economic resources. Thus, the state economy is dominant in a society with a state, which is natural, it is the origin of the state, like a tree must have a root, there cannot be a tree without a root, or take another root to replace it, that is the origin. Therefore, there are many articles asserting that the state economy is still the main one, which is unnecessary, because when the state is formed, the state economy will immediately appear and play a leading role associated with that state, it is impossible to use will or law to replace its leading position with another economy, and the state still has the leading role of the state economy, it will only be destroyed when the state is destroyed. Thus, we do not need to debate whether the state economy is the main one or not, and it does not even need to be stipulated in the documents of the state.

However, currently, the state-owned enterprise sector still accounts for 45% of total investment capital, 70% of official development assistance and uses 60% of loans from commercial banks. This is not consistent with the development law of the market economy. The state should hold a number of public service sectors, eliminate all monopolies of state-owned enterprises, especially state budget capital. The state is mainly responsible for issuing policies to guide production, circulation and consumption, creating conditions for businesses to compete fairly, promoting economic growth and social development.

Dr. Duong Xuan Thao