Cutting red tape to bolster economic growth

Cutting red tape to bolster economic growth

On February 27, the government met with state-owned enterprises (SOEs) to discuss tasks to contribute to the country's double-digit economic growth, and rapid and sustainable development.

Prime Minister Pham Minh Chinh chaired the conference, while deputy prime ministers Ho Duc Phoc, Bui Thanh Son, Mai Van Chinh also attended, along with the participation of leaders of some cities, and provinces, and numerous SOEs.

PM Pham Minh Chinh chairing the conference. Source: VGP

DPM Phoc emphasised the need for strong institutional breakthroughs, improving effectiveness, cutting administrative procedures, and unleashing resources to achieve a minimum growth rate of 8 per cent this year.

With more favourable conditions, Vietnam can reach double-digit growth, creating a solid driving force for the country's sustainable development.

"With the important role of SOEs, especially in maintaining macroeconomic stability and encouraging socioeconomic development, SOEs are the core economic force, pioneering, and contributing to the development of the country," he said.

The DPM appreciated the role of SOEs in undertaking major tasks and to encourage strong growth this year. With their capacity and position, SOEs should focus on investing and exploiting large and key projects and solving the country's strategic problems in infrastructure and spearheading economic sectors.

"Based on important policies to unlock resources and create new advantages to ensure rapid and sustainable economic growth, SOEs need to enhance the effective use of resources, create new breakthroughs, and promote the pioneering role of SOEs in innovation, science and technology R&D, transfer of modern techniques, energy saving, sustainable development, environmental friendliness, digital transformation," Phoc said. "The set target is 30 per cent of administrative procedures at least to be simplified or reduced; production and business costs reduced by about 3 per cent; other costs such as regulatory compliance costs and informal costs will also be cut; and at least 30 per cent of unnecessary business conditions abolished. We strive to push Vietnam's investment environment in the top three countries in ASEAN in the next three years."

SOEs should closely coordinate with large private corporations in the fields that the country needs, including renewable energy, high-tech industry, AI, digital transformation, and other innovative economic sectors to ensure a new growth model. In particular, it is necessary to focus on new growth drivers, and creating technological breakthroughs.

Moreover, SOEs should demonstrate social responsibility through community support initiatives such as eliminating temporary and dilapidated houses, developing social housing, and accompanying people in overcoming natural disasters.

Deputy Minister of Finance Cao Anh Tuan shared ideas on how SOEs could contribute to the 2025 growth target, and double-digit growth in the 2026-2030 period.

First, SOEs need to maximise their advantages and competitiveness to lead the development of the country's important economic sectors and fields; mobilising resources for economic growth (with a capital demand for the entire economy of about $160 billion this year).

Second, SOEs should improve the performance of production and business, and corporate governance following international practices to enhance the competitiveness and quality of development investment.

Third, rapid and sustainable development, and greening the economy should be implemented. SOEs must pioneer reducing emissions and switch to clean energy use and reduce carbon emissions.

Fourth, the National Assembly, the government, ministries, and agencies need to aid economic development through supporting the business community; streamlining the law, and good policies to help SOEs expand. The management mindset for SOEs should also be changed.

The deputy minister of finance also proposed solutions to encourage the performance of SOEs, contributing to the implementation of the socioeconomic development plan both in the near and long term.

"It is necessary to innovate and encourage traditional growth drivers (investment, consumption, export); create breakthroughs, encourage new growth drivers; restructure industries and sectors; improve labour productivity and maximise social resources," Tuan said.

VIR