According to many experts, in order for SOEs to truly become dominant and the main resource of the economy, leading other economic sectors, it is necessary to focus on building a system of mechanisms and policies towards innovation, creating conditions for SOEs to operate equally, proactively and compete with other enterprises. At the same time, to consolidate and develop large-scale SOEs, which operate effectively and have a long-standing brand name along with the growing domestic private sector.

Expanding autonomy

According to Mr. Nguyen Quang Tuan, Production Research Department, Military Telecom Industry Group (Viettel), SOEs were prevented from participating in venture capital investment and innovation.

Although the Party had a policy of "SOEs to invest in technology development, venture capital investment and innovation", but it had not been institutionalized yet.

Mr. Tuan recommended that firstly, SOE autonomy should be expanded, shifting policy from input management to target management and results-based management. Along with that, it was necessary to improve the capacity of state management agencies, promote renewal of thinking in building a tectonic state, service state; better support enterprises in forecasting, orientation as well as having good warnings for enterprises.

It was necessary to promulgate specific guiding policies so that SOEs could participate in venture capital investment, innovation investment; build and implement specific policies to develop pioneering enterprises, to lead technology in line with the Industrial Revolution 4.0 and digital economic development.

“It is necessary to change thinking, considering SOEs private enterprises, and support enterprises in forecasting, orientation as well as having good warnings for enterprises. Especially, boldly handing over authority or assigning tasks to some SOEs, only an agency has general management for the SOE system. Ministries, branches and agencies need to take advantage of the Industrial Revolution 4.0 to improve monitoring and management efficiency. Empowerment but must complete supervision and management. Therefore, SOEs can bring into full play their strengths,” Mr. Nguyen Quang Tuan said.

Raising the point of view for SOEs to "breakthrough" in the future, Dr. Vo Tri Thanh, Director of the Institute for Branding and Competition Strategy Research, said that in SOEs, there were only representatives, not real leaders. While in the private sector, there is a Board of Directors, it is possible to decide everything. This is the root of all problems, and must take specific steps. Over the past years, SOEs have always tried their best in assigning roles, minimizing risks and improving business efficiency. At present and in the future, there will be many problems in which the State plays an important role in ensuring the operation of SOEs and private enterprises.

Promoting restructuring of SOEs

In order to improve the effectiveness of SOEs' role in economic development, Dr. Le Xuan Sang, Deputy Director of the Vietnam Economic Institute, suggested that the State should resolutely accelerate the equitization of SOEs, even if investment had to be returned with the lowest rate to bring the highest market efficiency.

Besides, enterprise restructuring should be promoted. In order to restructure SOEs, we must speed up divestment, out-of-industry investment of SOEs so that enterprises and economic groups focused on their core areas to enhance competition, create brands, and apply science - technology in SOEs to lead and spread to the economy, and other fields for private and other economic sectors.

Along with that, it was also necessary to build a good governance team in SOEs. Because there are still many profitable SOEs that dominate the domestic market and expand overseas investment, thanks to capable the management team for bringing enterprises in the right direction (such as: Vinamilk Dairy Corporation, Viettel Industry - Telecommunication Corporation).

Dr. Le Xuan Sang, Deputy Director of the Vietnam Economic Institute, said that the entire SOE policy system should be changed according to the principle of clearly delineating ownership functions and returning all common functions of an enterprise. It was necessary to clarify the implications of the State's economy as the core. Improve equal and unified governance between SOEs and other enterprises, especially weak stages such as recruitment and appointment. Accordingly, consider amending the Law on the use of investment capital in enterprises' production and business and guiding documents with breakthrough orientations, creating proactivity for SOEs.

“Some shortcomings in SOE governance cause low operating efficiency such as the autonomy of leaders and management of SOEs in business activities under the market mechanism are still limited. SOE leaders are afraid of making decisions, afraid of being attributed or wrong in the regulatory framework. Mistakes cause not only capital loss, economic damage, but also political life.”

To improve the operational efficiency of SOEs, Dr. Sang said that “it is necessary to catch up with the Industrial Revolution 4.0 to improve the efficiency of supervision and management, because technology will contribute to reduce corruption. Along with that, strictly comply with the provisions of the FTAs, especially the new generation FTAs, especially the CPTPP, to improve the efficiency of SOE monitoring and management,” said the Deputy Director of the Vietnam Economic Institute.