State agencies offer solutions for economic growth

State agencies offer solutions for economic growth

Representatives from the government and state-owned enterprises (SOEs) met on February 27 to discuss Vietnam's double-digit economic growth goals.

Le Ngoc Son, CEO of PetroVietnam. Source: VGP

Le Ngoc Son, CEO of PetroVietnam, told those in attendance about the national oil and gas supplier's target of growing investment by at least 15 per cent on-year, to be achieved via solutions in governance, expansion into overseas market, and domestic investment

PetroVietnam is set to follow modern global trends for its revamped governance model by; evaluating and improving its asset and capital use; optimising the capacity and performance of its governance system, internal controls, and risk management; boosting scientific research and the application of new technologies and techniques; and improving labour productivity.

The state-owned body will look for more opportunities abroad to develop and expand its market reach by providing further technical services to international clients, particularly in North America, the Middle East, Russia, and Southeast Asia. PVN is aiming for revenue from overseas activities to account for 30 per cent of its total revenue.

Regarding investments closer to home, PetroVietnam will coordinate closely with domestic investors to accelerate the progress of key projects and upgrade and expand Dung Quat Oil Refinery and offshore projects. Investment in new ventures and capital disbursement is projected to reach VND60.75 trillion ($2.4 billion).

"With these solutions and the positive results achieved in the first two months of the year so far, we firmly believe we can achieve the goals we have set out before us, ensuring energy security while contributing to the country's economic growth targets for 2025," said Son.

Son made three recommendations to successfully carry out the above tasks; implement Conclusion No.76-KL/TW of the Politburo and Resolution No.38/NQ-CP of the government; and amend PetroVietnam's charter and financial regulations.

"PetroVietnam needs clear decentralisation in terms of absolute numbers, or as a proportion of charter capital, and stronger decentralisation for SOEs," he said, while going on to propose SOEs should be able to decide to invest up to VND5 trillion ($200 million), or half of their charter capital. The representative agency of the owner can decide on investment policies up to VND10 trillion ($400 million), and the prime minister can decide on higher investment.

Son also recommended that the prime minister authorise approval for issues arising during the implementing of oil and gas exploration and exploitation activities.

Tao Duc Thang, chairman and CEO of Viettel Group

Tao Duc Thang, chairman and CEO of Viettel Group, told the meeting that the state-run telecoms group is still focussed on traditional fields such as communications, digital and industrial technology, and postal services,

"The telecommunications sector is still growing with more new and better products, in addition to horizontal growth, reaching more overseas markets. We are striving for 8-10 per cent growth in this field for the period 2025-2030," said Thang.

Regarding industrial demand for Viettel's services, Thang said, "The issuance of Resolution No.57-NQ/TW is great motivation for us. We have received numerous requests from localities and large enterprises for consultation and proposals for digital transformation. This will be the main growth driver for Viettel and local economies as well, with growth expected to be around 25-30 per cent."

"For the high-tech industry, this requires research. Some projects take decades of research, and we are achieving results in the military and civil fields. Viettel has set a growth target of 30 per cent in this field," he added.

Logistics, courier, and postal services remain a promising, but fragmented area, according to Thang. "Many small businesses offer delivery services, but there needs to be a dominant market leader in this field. We are being supported by the government and the Ministry of National Defence to establish large delivery centres at borders."

"With such support, a growth target of 8 per cent this year and double-digit growth over the next few years is achievable but will be challenging," added Thang.

Nguyen Anh Tuan, president and CEO of EVN

Nguyen Anh Tuan, president and CEO of Vietnam Electricity (EVN) explained that to achieve 8 per cent growth, electricity demand will have to rise by 12-13 per cent on-year. The national power supplier has implemented several solutions to ensure supply, readiness, and synchronisation across all stages of power generation, purchase, import, transmission, and distribution.

"We have built plans to provide enough power in the case of the electricity demand increasing by 12-13 per cent this year, especially during the peak months of the dry season." said Tuan.

"EVN is working to complete 253 power grid projects from 110 to 500 kV to improve grid capacity, in addition to finishing key projects such as the Hoa Binh hydropower plant expansion, Quang Trach I hydropower plant, Lao Cai - Vinh Yen 500 kV line, and the Nho Quan - Phu Ly - Thuong Tin 500/220 kV line that supplies electricity to Con Dao district," said the EVN chief.

Tuan also raised some points on legal reforms and policies to create new development space for SOEs. "EVN hopes to receive approval for investments exceeding VND5 trillion ($200 million)," he said.

"EVN would also like to work alongside Viettel, VNPT, and FPT to carry out digital transformation. However, some regulations in the Law on Bidding and the Law on Investment should be amended to facilitate this," Tuan added.

VIR