Transforming state-owned enterprises in Vietnam until 2030: orientations and solutions

Abstract

In recent years of renovation, Vietnam has consistently implemented the policy of developing a multi-sector economy based on market mechanism and managed by the State. Vietnam has built a relatively complete system of policies and legislation on the transformation of state-owned enterprises (SOEs). With the equitization process, although the number of SOEs is gradually decreasing, accounting for a low proportion in terms of quantity in the entire enterprise sector, it still holds a large amount of resources in terms of capital and assets, generates revenue and has a significant contribution to the state budget. However, the results of the transformation of SOEs are still limited, including: The progress of equitization and divestment is still slow, development strategies of many SOEs are not clear, the choice of investment structure, resource mobilization is still confusing, financial capacity is limited, management efficiency, investment efficiency, production and business efficiency are still low... These inadequacies may originate from the content of the policy or in the organization of business activities of SOEs with low efficiency. The article focuses on assessing the overall process of SOEs transformation in the transition to a market economy, especially from 2011 to now. The article points out the successes and limitations, identifies the causes of the limitations in order to overcome and adjust the SOE transformation process in the coming period.