PM Nguyen Xuan Phuc: CMSC, economic groups and corporations contribute greatly to Vietnam's growth

The year beginning with outstanding achievements

Speaking at the meeting’s opening session, CMSC Chairman Nguyen Hoang Anh talked about the commission’s establishment. Specifically, following the 12th-tenure Central Communist Party Committee’s Resolution 12-NQ/TW dated June 3, 2017 on further restructuring, innovating and improving the efficiency of state-owned enterprises, on February 3, 2018, the government issued Resolution 09/NQ-CP on establishing the Commission for the Management of State Capital at Enterprises (CMSC), and on September 29, 2019, it issued Decree 131/2018/ND-CP governing functions, tasks, powers and organizational structure of CMSC. “CMSC establishment is a major policy of the Communist Party and the state, which has been promoted for many years to separate functions of state management and representing state capital ownership at enterprises, and form an organization specifically designed for representing state capital ownership at enterprises. This is a new model that was unprecedented in Vietnam, and no similar model was found in the world,” CMSC Chairman Nguyen Hoang Anh said.

CMSC Chairman Nguyen Hoang Anh delivers his opening speech at the conference

After one year plus of operation, with the support, guidelines and direction of the Communist Party, the National Assembly, the government, the prime minister and deputy prime ministers, in addition to cooperation of ministries, sectors, localities and 19 economic groups and state corporations, as well as efforts by the commission’s leadership and staff members, CMSC has obtained initial important achievements.

Economic groups and corporations reaching or exceeding targets

CMSC Vice Chairman Ho Sy Hung said that in 2019, most of the 19 groups and corporations managed by the commission reached their targets and targets set by the commission. Their revenues, profit, tax payment, and average employee income all increased, while state capital invested in these businesses has been secured and developed.

CMSC Deputy Chairman Ho Sy Hung presents the report to review the performance in 2019 and set out its tasks for 2020

Specifically, total revenue of the 19 groups and corporations reached almost VND1,479 trillion in 2019, up 6.4 percent from 2018. High-achieving businesses included the Vietnam Oil and Gas Group, which earned revenues of VND736.2 trillion, up 17 percent from 2018, the Vietnam Electricity (EVN) with VND393.23 trillion (up 14.5 percent), and the Airports Corporation of Vietnam (ACV) with almost VND20.35 trillion (up 13.6 percent), among others.

Their pre-tax profits totaled more than VND99.83 trillion, 28 percent higher than the year’s target. 

Total tax payment reached VND221,108.68 billion, an increase of 17.6 percent compared with 2018. Groups and corporations with high tax payment amounts included the Vietnam National Oil and Gas Group with VND88,143 billion, up 50.4 percent compared with 2018; the Vietnam National Petroleum Group with VND41,200 billion, up 5.4 percent compared with 2018; and the Vietnam National Tobacco Corporation with VND11,371 billion, up 3.1 percent compared with 2018.

Total export value of some products of several companies whose ownership is represented by the CMSC reached more than US$2.2 billion.

The role of CMSC and groups, corporations highly appreciated

In the framework of the conference, participants listened to speeches given by representatives of groups, corporations, ministries and sectors.

Addressing conference participants, Prime Minister Nguyen Xuan Phuc emphasized the important role of groups, corporations and the CMSC as well as their contributions to Vietnam’s economic growth, macroeconomic stability, high state budget revenue, effective management of a large workforce, and supply of important products for the economy.

Prime Minister Nguyen Xuan Phuc gives the direction at the conference

The Prime Minister said that although it was established just more than one year ago, the CMSC had provided guidance for state-owned corporations and groups to successfully implement production and business tasks of 2019. Their revenues and profits increased while state capital amounts were secured and developed. Electricity, coal, oil, gas, chemicals and aviation are important sectors with active contributions to socioeconomic development. Groups and corporations have carried out urgent investment projects, implemented urgent tasks and maintained effective coordination in protecting national sovereignty and ensuring national defense and security.

The CMSC has also created favorable conditions for groups and corporations to expand production and business activities, and promote creative innovations. The Commission has taken over and proposed measures to deal with 12 inefficient projects of the Ministry of Industry and Trade.

Regarding the CMSC’s tasks for the coming period, the Prime Minister said that the Commission, as well as ministries and sectors, needs to innovate their strategic thinking and highlight the constructive spirit to serve businesses but not to give them administrative orders. Favorable conditions must be created for businesses, including state-owned enterprises, to develop. Notably, the Commission, ministries and sectors should not evade their responsibilities and must take the initiative in implementing their assignments.

The Prime Minister emphasized that 2020 is an important year for Vietnam as the country has to implement major tasks, host significant events and cope with numerous challenges. Therefore, the Commission should concentrate on surmounting its limitations and shortcomings in order to better implement its assignments.

The Prime Minister also indicated the need to further restructure and renovate state-owned enterprises based on modern technology, creativity and international-standard management capacity, and mobilize social resources to strengthen the pivotal position of state-owned enterprises.

Prime Minister Nguyen Xuan Phuc asked the CMSC to perform well the role of state capital representative at 19 leading groups and corporations. In particular, groups and corporations, who are the pioneering force to help the country advance in the international economic integration process, should have vision, strategy and aspiration for stronger development, and strengthen the application of scientific and technological achievements to improve productivity, quality, efficiency and competitiveness, contributing to the development and prosperity of the country, the Prime Minister said.

Efforts to complete the tasks

Acquiring the direction of the prime minister, CMSC Chairman Nguyen Hoang Anh emphasized that 2020 brings a special significance for the implementation of the 10-year socioeconomic development strategy and five-year socioeconomic development plan.

CMSC Chairman Nguyen Hoang Anh acquires the direction of the Prime Minister

With the motto of “discipline, integrity, action, responsibility, creativity and efficiency” defined by the government in Resolution 01/NQ-CP dated January, 1, 2020, the CMSC, groups and corporations will make greater efforts to fulfill the assigned tasks, significantly contributing to the country’s development.

Concluding the conference, Prime Minister Nguyen Xuan Phuc presented gifts to the CMSC, groups and corporations.