PM urges SOEs to pioneer digital shift

PM urges SOEs to pioneer digital shift

Prime Minister Pham Minh Chinh chaired a conference on April 15 in Hanoi with leaders of state-owned groups and corporations under the theme 'State-owned Enterprises Leading Digital Transformation and Driving Growth'.

The event aimed to align awareness and action amid ongoing global trade tensions, and to promote the role of SOEs in overcoming trade-related challenges.

At the conference, SOE leaders reaffirmed their determination to achieve the ambitious growth targets set by the government, emphasising that digital transformation and innovation are the fastest paths to achieving these goals.

Huynh Quang Liem, general director of VNPT, stressed that digital transformation in business operations and corporate governance is vital for survival, especially for service-based businesses.

As an early pioneer in digital transformation, VNPT expressed its desire to partner with the government to implement practical digital solutions.

“This is the lever that will boost labour productivity, operational efficiency, and unlock new growth potential for every enterprise and sector,” Liem said.

Representing the energy sector, Le Manh Hung, chairman of PetroVietnam, noted that the group is heavily impacted by technological shifts, the energy transition, and geopolitical factors such as tariffs, exchange rates, and interest rate fluctuations.

In Hung’s words, since 2022, PetroVietnam has implemented digital transformation initiatives. Its digital solutions have helped the group achieve an average annual revenue growth rate of 16.7 per cent and an average annual state budget contribution growth rate of 21.3 per cent from 2021 to 2024.

From a practical standpoint, a representative of Military Bank (MB) suggested prioritising digital transformation opportunities for SOEs, including major technology projects and new platform development. This would enhance their leadership roles and overall impact.

“In addition, SOEs should be allowed to adopt private sector style salary mechanisms to better invest in digital transformation,” the MB representative proposed.

Reporting to the conference, Deputy Minister of Finance Nguyen Duc Tam stated that in 2024, the total assets of 671 SOEs exceeded $224 billion, marking a 45 per cent increase compared to 2023.

Equity capital approximated $120 billion, up 61 per cent; total revenue came to $132 billion, up 24 per cent; pre-tax profit amounted to $9.1 billion, up 8 per cent; and state budget contributions were close to $16 billion.

Notably, SOEs in the digital technology sector have clearly demonstrated their leadership in digital transformation, contributing to building digital infrastructure for government agencies, local authorities, organisations, and businesses.

They have also successfully developed digital products for customer services.

Vietnam’s ‘Big Four’ state-owned banks, Vietcombank, Agribank, VietinBank, and BIDV, have also made significant strides in digital transformation.

However, Deputy Minister Tam acknowledged that challenges remain, including inconsistent innovation, underperformance of available resources, limited competitiveness and technological capacity, outdated business management tools, and the inability to master core digital technologies within many SOEs.

In his concluding remarks, PM Chinh noted that digital transformation is an objective necessity, a strategic choice, and a top priority for national and business development.

“Firms must take the lead in digital transformation while achieving double-digit growth rates to contribute to national GDP growth of at least 8 per cent in 2025, and reach double-digit growth in subsequent years,” said Chinh.

The PM also underlined the need for SOEs to standardise processes and regulations in line with digital transformation, build data infrastructure, digitise documents, apply AI, and develop both digital infrastructure and products.

All these tasks, he noted, must align with the national digital transformation effort, including the nationwide ‘Digital Literacy for All’ campaign.

He also directed ministries and sectors to review and resolve institutional bottlenecks, enhance decentralisation and delegation of power, and eliminate at least 30 per cent of redundant administrative procedures.

VIR