Vietnam's State-Owned Enterprises at a Turning Point: Digitalization, Green Transition, and Modernized Management

Vietnam's Communist Party and government are intensifying efforts to modernize, digitalize, and green state-owned enterprises (SOEs) to bolster their leading role in economic growth. This initiative aligns with the implementation of Political Bureau Resolution No. 79-NQ/TW, highlighting the urgent need to redefine and transform SOEs for sustained economic development. The restructuring and strengthening of SOEs are considered vital for Vietnam's sustainable economic growth. The government is pushing for updated management systems to ensure SOEs operate more efficiently and competitively in line with market economy principles. This includes adopting modern governance practices, enhancing operational efficiency through digital transformation (DX), and committing to green transition to reduce environmental impact. Furthermore, expanding capital mobilization channels for SOEs is identified as a key priority. This aims to secure necessary funding for infrastructure investments and new business ventures, thereby strengthening their role as engines of economic development. Proposals also include enhancing collaboration where SOEs might receive 'orders' from the state for strategic national reserves, such as leasing national reserve warehouses for petroleum and oil products, contributing to national economic stability. Under Vietnam's one-party system, SOEs have been instrumental in executing economic policies. In recent years, while economic ties with China have deepened, the efficiency and international competitiveness of SOEs are critical for enhancing domestic economic self-reliance and competitiveness. These SOE reforms represent concrete economic measures towards Vietnam's vision of a 'prosperous, strong, democratic, just, and civilized society.'