Directive 07/CT-TTg 2024 promotion of investment and development of state enterprises

DIRECTIVE

On innovation in governance, improvement of production and business efficiency and strong promotion of investment and development of state groups, corporations, and enterprises

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In 2023, the global and local conditions became increasingly rapid, complicated, unpredictable and difficult than forecasts, creating significant pressure and great impact on our country's socio-economic development. However, with the engagement, efforts, and high determination of the whole political system, our country has achieved important results, becoming a bright spot of the global economy.

In the overall success, there is a positive and important contribution from the state-owned enterprises (SOEs). Total estimated revenue of SOEs in 2023 is about 1,652 million billion VND, exceeding 4% of the 2023 plan; the pre-tax profit is about 125.8 million billion VND, exceeding the 2023 plan by 8%; the State budget contribution is estimated at about 166 million billion VND, exceeding 8% of the 2023 plan¹. The SOEs increasingly demonstrate their leading, dominant and leading role in important and essential industries and sectors of the economy; contributing to stabilization of the macro economy, controlling inflation, promoting growth, ensuring major balances of the economy, and making practical contributions to construction, socio-economic development and national defense.

Besides the achieved results, the operations of the SOE sector also reveal some limitations such as: some SOEs have not made the most of the positive aspects of the resources, capital, and assets assigned by the State, the disbursement of investment capital for the whole year 2023 has not met the set plan, there are some loss-making SOEs; there are limitations in competitiveness, application of science and technology, innovation, and digital transformation; the corporate governance innovation is still slow; there are no development investment projects large enough to create breakthrough momentum and have spill-over effect; the proportion of investment capital in the important and essential industries and sectors has not met the requirements, etc.

The above shortcomings and limitations come from both objective and subjective causes, of which the subjective causes are the main ones, falling under the responsibility of the ministries, sectors, and the Commission for the Management of State Capital at the enterprises, the owner representative agencies, especially the SOEs; some problems in policy mechanisms have not been promptly resolved; the coordination with the ministries and sectors is not yet close and effective; it is necessary to make efforts and initiative from the Commission for the Management of State Capital, the owner representative agency and the state economic groups, corporations and enterprises.

In 2024, it is forecast that the world and domestic economies will continue to face greater difficulties and challenges, especially for production and business activities, and 2024 is also a year of acceleration and breakthrough, which plays especially important role in successfully implementing the 5-year socio-economic development plan for 2021-2025 according to the Resolutions of the 13^th National Party Congress, so the task set is very heavy.

To continue promoting the leading role, improving production and business efficiency and promoting investment and development of SOEs, contributing to the successful implementation of the socio-economic development task in 2024, with the spirit of "Discipline and responsibility, timely initiative, accelerated creativity, and sustainable efficiency", the Prime Minister required:

I. State groups, corporations, and enterprises:

Thoroughly grasp and strictly implement the following requirements:

1. Raise awareness and responsibility in performing assigned tasks of managing the state capital and assets at the enterprises, especially the responsibilities of the Chairpersons, the Chief Executive Officers, and the persons representing state capital amounts in the enterprises. Promote the spirit of self-reliance, enhance initiative, creativity, dare to think, dare to do, dare to take responsibility, and strive with the highest sense of responsibility for the benefit of the nation and people, create new atmosphere, thinking, ways of doing things, determination, and decisiveness in action.

2. Expeditiously and effectively deploy the enterprise restructure scheme for the period of 2021-2025, focusing on the corporate governance innovation, the restructuring of finance, capital, assets, human resources, and organization of the enterprise's management apparatus; the enterprise's approved annual and five-year development strategy, production, business and investment plan; the related tasks and directions of the Government and the Prime Minister.

3. Promote the implementation of large, key national investment projects in important sectors according to the strategies and plans assigned by the competent authorities and the Government and the Prime Minister; creating an important premise and driving force for the development of industries, sectors and the entire economy. Properly fulfill the investment preparation and promptly disburse the investment capital to speed up the progress of investment projects. Research and increase investment in innovation, new industries and sectors.

4. Prioritize focusing on the key business areas, tackle current situation where the enterprises make scattered and large but inefficient investments; improve the innovation capacity; innovate the corporate governance model towards modernity in accordance with the international practices; arrange and streamline the apparatus; improve the competitiveness in domestic and international markets; create posture and strength as well as the basis for building the development orientation and the strategic vision for the next period.

5. Exceed the assigned production and business plan targets, make the highest contribution to ensuring major balances for the economy, stabilizing the macro-economy, creating revenue for the state budget, creating jobs and ensuring the lives of workers, implementing the social security policies.

II. The state-owned groups, corporations and SOEs continue to promote the pioneering and leading role of the SOEs in the economy, ensuring that SOEs are the pioneering and leading force in the fields of innovation, digital transformation and economic recovery. In which:

1. The state corporations and enterprises that are investing and constructing key traffic projects and infrastructure:

Accelerate the progress and ensure the quality, the efficiency and the safety in implementing the construction of important national transport infrastructure projects such as: the Eastern North-South expressway, the East-West expressway, expressway connecting the key economic regions, contributing to the implementation of the 13^th National Party Congress goal of striving to complete over 3,000 km of expressways by 2025 and over 5,000 km of expressways by 2030; speed up the progress of the projects: Belt 4 of the Capital Region, Belt 3 of Ho Chi Minh City, etc., Long Thanh International Airport, Passenger Terminal T3 of Tan Son Nhat Airport; early complete the upgrading of maritime channels into Cai Mep - Thi Vai port, Nam Nghi Son port, etc.

2. The state-owned groups, corporations, and SOEs in the field of digital infrastructure development and new technology:

Viettel Group, VNPT, Mobifone, Global Telecommunications Corporation (GTEL), etc. continue to promote the investment projects to develop and popularize traditional telecommunications infrastructure to digital infrastructure; develop the data center and the cloud computing infrastructure, the digital technology infrastructure and the digital platforms, the digital applications to create motivation for the digital economic development; at the same time, play a leading role in researching emerging technologies (semiconductor chips, etc.).

3. The state-owned groups, corporations, and SOEs in the field of energy development:

a) Vietnam Electricity (EVN) accelerates the implementation progress of 500 KV circuit-3 line projects from Quang Trach (Quang Binh) to Pho Noi (Hung Yen), strives to put them into operation in June 2024.

b) EVN, Vietnam Oil and Gas Group (PVN), Vietnam National Coal and Mineral Industries Group (TKV) and affiliated units promptly and effectively deploy the National electricity development master plan for the period of 2021-2030, with a vision toward 2050 (Electricity Master Plan VIII) according to regulations, ensuring national energy security, providing enough electricity for production, business and consumption of the people. EVN and PVN proactively propose to the competent authorities the solutions to remove bottlenecks and problems arising in the development of the gas-fired power projects to both contribute to promoting investment progress in gas power source projects and gas exploitation projects.

4. The state-owned groups, corporations, and SOEs in the fields of oil and gas, petrochemical refining, and petrol and oil trading:

a) PVN shall: focus on accelerating the progress of the large-scale projects on: Block B, Blue Whale, Block B - O Mon gas pipeline to be early put into operation, contributing to improving the economic efficiency of the project, developing the gas-fired power projects associated with effective implementation of the Scheme on tasks and solutions to implement the outcomes of COP26; propose amendments and supplements to the Charter of organization and operation, financial regulations of the Group's parent company, ensuring compliance and synchronization with the Law on Oil and Gas; focus on solutions to promote the Dung Quat Oil Refinery Upgrade and Expansion Project, contributing to ensuring a stable and sustainable domestic petrol and oil supply; urgently coordinate with the related parties to restructure the Company and Nghi Son Refinery and Petrochemical Plant Project to operate stably, safely, effectively, and preserve PVN's capital; focus on early and definitively handling slow, loss-making, and ineffective projects and enterprises under PVN (including Dung Quat Shipbuilding Industry Company Limited) to have resources to invest in key sectors.

b) Vietnam National Petroleum Group and the SOEs are the focal enterprises in the petrol and oil trading, increasing the ability to forecast world market price developments and proactively plan to ensure petrol and oil supply for the economy and minimize disadvantages due to fluctuations in the world’s petrol and oil prices.

5. The state-owned groups, corporations, and SOEs in the field of agriculture:

a) The SOEs assigned the task of managing and exploiting agricultural infrastructure systems including irrigation works continue to perform well the task of irrigation and drainage to cope with drought and saltwater intrusion to support the effective and sustainable agricultural development, firmly ensure the national food security and boost the exports.

b) Vietnam Northern Food Corporation and Vietnam Southern Food Corporation proactively and actively participate in effective implementation of the Scheme on "Sustainable development of one million hectares of low-emission, high-quality rice associated with green growth in the Mekong Delta through 2030".

c) Vietnam Rubber Group continues to promote its strengths in producing and exporting products from rubber latex; promotes the wood and furniture export processing activities.

d) The companies providing seafood exploitation services continue to promote their important role in providing logistics services for offshore fishermen and developing the marine economy.

dd) The agricultural and forestry companies that have not completed the arrangements in accordance with Decree No. 118/2014/ND-CP urgently review and implement in accordance with Decree No. 118/2014/ND-CP and Decree No. 04/2024/ND-CP. In case it is necessary to change or adjust the arrangement scheme, the enterprise shall develop a new scheme, report to the owner representative agency for consideration and direction, and send it to the Ministry of Agriculture and Rural Development for appraisal and submission to the Prime Minister for approving the policy as a basis for implementation; strive to complete the policy approval in 2024.

6. The state corporations and the SOEs under the Ministry of Industry and Trade, Ho Chi Minh City People's Committee, Hanoi People's Committee and People's Committees of provinces and centrally-run cities operating in the sectors of industry, trade, services and tourism continue to improve the competitiveness of industrial production enterprises, especially the associating industry sector; develop the e-commerce; promote the development of the domestic market; develop the logistics; "renew" tourism products associated with the development of the night economy in large cities.

7. The state groups, corporations, and enterprises that directly serve the national defense and security and combine the economics with the national defense and security continue to promote results and achievements in 2023, strive to exceed the assigned plan in 2024, ensure the national defense and security tasks.

8. The SOEs providing public services in localities perform well the task of providing public services, ensuring the social security, and improving the quality of people's lives (especially preventing urban flooding, ensuring continuous urban clean water supply).

9. The state corporations and SOEs in the field of construction and development of urban infrastructure and urban housing promote the development of the social housing and worker housing projects; contributing to the quick and effective implementation of the Scheme on "Investment in building at least 1 million social housing apartments for low-income earners and industrial-park workers in the 2021-2030 period", striving in 2024 to complete about 130 thousand apartments.

10. The state-owned commercial banks continue to review and simplify the lending and disbursement procedures in accordance with law, reduce costs, strive to reduce the lending interest rates, and ensure the reasonable interest costs to support the economic recovery.

11. The State Capital Investment Corporation (SCIC) coordinates and participates with SOEs in increasing investment in the important national infrastructure projects and new fields, ensuring efficiency and effectiveness, contributing to promoting the pioneering and leading role of SOEs in the economy. SCIC, Vietnam Debt and Asset Trading Corporation (DATC), Vietnam Asset Management Company (VAMC) effectively carry out business activities associated with promoting and restructuring SOEs that are subject to handover to these units in accordance with law.

III. The ministries, sectors, agencies, People's Committees of the provinces and centrally-run cities and owner representative agencies:

1. Urgently carry out the tasks assigned by the Government and the Prime Minister in the Government's Resolutions and the Prime Minister's Decisions: Resolution No. 68/NQ-CP dated May 12, 2022; Resolution No. 58/NQ-CP dated April 21, 2023; Decision No. 22/2021/QD-TTg dated July 2, 2021; Decision No. 360/QD-TTg dated March 17, 2022 and other related documents. Based on functions, tasks and authority, accelerate the progress of developing strategies and planning for development of the industries and sectors in the period of 2021-2030, with a vision toward 2050 to attach the development strategy of SOEs with industry and sector development to promote the country's important resources.

2. Promote the reform of the administrative procedures, improve the business investment environment, create favorable conditions for the people and the enterprises; resolutely reduce the unnecessary, inappropriate, and lawfully unenforceable administrative procedures and business regulations. Proactively remove difficulties to speed up customs clearance of goods and improve the efficiency of import and export activities at the border gate area, especially for seasonal agricultural and aquatic products.

3. Correct and thoroughly overcome the avoidance and pushing of responsibilities in the performance of public duties; at the same time, protect cadres who dare to think, dare to do, dare to take responsibility for the common good, including the interests of people and enterprises.

4. Continue to review and improve the relevant mechanisms, policies and legal regulations on: the corporate bond markets, the land use rights, the real estate, the labor, the science and technology, the energy, etc., contributing to improving the efficiency of mobilization and use of resources for production and business.

5. The Ministry of Natural Resources and Environment, the Ministry of Finance, the Ministry of Agriculture and Rural Development urgently submit to the Government to promulgate the Decrees detailing the Land Law to ensure progress, quality, early bring the Land Law to life, unclog resources, develop socio-economics and support production and business development of SOEs.

6. The Ministry of Finance:

a) Urgently complete the development of the Law amending the Law on Management and Use of State Capital in Production and Business at the enterprises (Law 69) in the direction of having solutions for SOEs to proactively develop in a competitive environment associated with responsibility and effective inspection and supervision mechanisms; promote the decentralization according to the direction of the Standing Government in Notice No. 48/TB-VPCP dated February 7, 2024. In case of necessity, urgently research and propose the competent authorities according to regulations to immediately amend a number of articles in the Law 69 according to shortened procedures taking effect in 2024 to promptly remove problems and unclog the investment resources of SOEs to contribute to the socio-economic development according to the direction of the Standing Government in Notice No. 51/TB-VPCP dated February 7, 2024.

b) While the above amended Law has not been promulgated, urgently complete and submit to the Government to amend the Decrees guiding the Law 69 (Decree No. 140/2020/ND-CP, Decree No. 32/2018/ND -CP, Decree No. 91/2015/ND-CP, Decree No. 126/2017/ND-CP) in the direction of focusing on solving urgent problems in the management and use of state capital invested in enterprises and equitization of the SOEs. In particular, focus on researching and removing obstacles in (i) divesting capital from enterprises where the state holds more than 50% of the charter capital and are loss-making public companies, (ii) transfer of investment projects and assets between SOEs, (iii) transfer of assets from SOEs to localities, (iv) increase in the state capital invested in enterprises to maintain the capital contribution ratio of the state in joint stock companies, (v) specifically identifying key areas for the state to invest in additional capital in operating enterprises, (vi) dealing with land issues when equitizing SOEs, ( vii) finalization of equitization, etc.

c) Promptly submit to the competent authorities to amend and supplement the current regulations to handle problems in implementing value-added tax (VAT) in order to remove cash flow difficulties for enterprises (including regulations on input VAT for domestic fertilizer production enterprises, input VAT refund for capital construction investment projects, etc.

d) Assume the prime responsibility for, and coordinate with the Commission for the Management of State Capital, SCIC and the relevant agencies in reviewing and proposing amendments and supplements to regulations on the functions, tasks, operating mechanisms, and the Charter of SCIC, ensuring compliance and synchronization with current law, creating conditions for SCIC to effectively perform its institutional role and tool of the Government, reporting to the Prime Minister in the first quarter of 2024.

dd) Urgently receive comments from Government Members, finalize and submit to the Government for early issuance of a Decree amending Decree No. 33/2029/ND-CP of the Government regulating the management, use and exploitation of road traffic infrastructure assets; submit to the Government the Decree amending Decree No. 43/2022/ND-CP of the Government regulating the management, use and exploitation of clean water supply infrastructure.

e) Research and synthesize recommendations of Vietnam Railway Corporation on mechanisms for the enterprises to exploit station areas with commercial advantages and existing resources in the process of amending and supplementing Decree No. 46 /2018/ND-CP, submitted to the Government in the third quarter of 2024.

7. Ministry of Planning and Investments:

a) Assume the prime responsibility for, and coordinate with agencies in urgently developing the Government's Action Program to implement Resolution No. 41-NQ/TW dated October 10, 2023 of the Politburo on building and promoting the role of Vietnamese businessmen in the new era, reporting to the Prime Minister in March 2024.

b) Assume the prime responsibility for, and coordinate with relevant agencies in urgently submitting to the Prime Minister amendments and supplements to Decision No. 22/2021/QD-TTg according to the direction in Official Dispatch No. 9245/VPCP-DMDN dated November 24, 2023.

c) Urgently receive the comments from Government Members, complete and submit to the Government for early promulgation of the Decree amending Decree No. 10/2019/ND-CP of the Government in March 2024, promoting decentralization and decentralization, create flexibility and initiative in the activities of owner representative agencies and associate with strengthening supervision and inspection by the state management agencies.

8. The Ministry of Industry and Trade:

a) Assume the prime responsibility for, and coordinate with relevant ministries and agencies in: Strengthening trade promotion in the direction of: continuing to diversify export markets, products, and supply chains; consolidating and expanding the market share of Vietnamese goods in the traditional markets; creating a breakthrough to expand new potential export markets; move quickly and strongly to the official export. Implementing synchronous solutions, proactively adapting and having specific plans to meet regulations of export markets on emission reduction, anti-deforestation, green growth, product traceability, and food safety, etc.

b) Review and submit to the Government for promulgation the Decree on amending the Charter of Vietnam Oil and Gas Groups to ensure synchronization of the Law on Oil and Gas.

c) Innovate the mechanism for managing petroleum trading hubs in the direction of reducing hubs and making it easier to check and supervise; implement a roadmap to adjust electricity prices appropriately, according to the law, without jerks, perfectionism, or haste.

d) Urgently direct and complete the plan to completely handle the Phuong Nam Pulp Mill Project and submit it to the Prime Minister in February 2024 for submission to the Standing Government.

9. The People's Committees of centrally-run cities and provinces:

a) Accelerate the progress of rearranging and handling houses and land of local enterprises according to authority to remove bottlenecks and unclog resources for production and business development. Allocate and lease land and determine the value of land use charges promptly, in accordance with law.

b) Research and create favorable conditions in handling procedures for applying for the land use rights certificates for land areas used for construction works serving railway transport operations.

10. The Ministries, sectors, agencies, the Commission for the Management of State Capital, People's Committees of provinces and centrally-run cities with functions and tasks as the owner representative agencies:

a) The Commission for the Management of State Capital urgently implements the tasks assigned by the Prime Minister in Decision No. 78/QD-TTg dated September 19, 2023 on the plan to implement the Politburo's conclusions on the Scheme to establish a specialized agency as the owner representative agency. For long-standing problems, beyond power or new problems, it is necessary to urgently coordinate with the relevant agencies, make recommendations to the ministries, sectors or advise the Government to consider and resolve issues for the enterprises. Urgently complete and submit to the competent authorities a plan to handle the remaining 03 weak projects and enterprises in the industry and trade sector; the scheme on solutions to support the recovery of Vietnam Airlines JSC after the Covid-19 pandemic.

b) Strengthen inspection, supervision, urging and direction of the enterprises to implement the approved development strategies, 5-year and annual production and business plans and investment and development plans of the groups, the corporations and the affiliated enterprises.

c) Urge the agricultural and forestry companies that have not completed arrangements in accordance with Decree No. 118/2014/ND-CP, to urgently review and implement in accordance with Decree No. 118/2014/ND -CP and Decree No. 04/2024/ND-CP. Urgently appraise the overall arrangement plan for enterprises that have to change or adjust the arrangement plan, send it to the Ministry of Agriculture and Rural Development for appraisal according to regulations.

d) Direct the Chairperson, the Chief Executive Officer, the representatives of state capital at economic groups, corporations, SOEs, and state-owned commercial banks to urgently and seriously organize the implementation of tasks and directions assigned in the Directive; responsible for supervising, urging and inspecting implementation according to regulations.

IV. Assign the Deputy Prime Minister Mr. Le Minh Khai, the Head of the Steering Committee for Innovation and Enterprise Development to directly direct; the Deputy Prime Minister Mr. Tran Hong Ha, the Deputy Prime Minister Mr. Tran Luu Quang, according to assigned fields, to direct the ministries, sectors, the localities, the Commission for the Management of State Capital, and owner's representative agencies to organize the implementation of tasks assigned in this Directive, promptly handle arising issues according to authority.

V. The Government Office shall monitor and urge the ministries, the agencies, the localities and enterprises to perform assigned tasks in this Directive in accordance with law/.

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¹ The data excludes the state-owned commercial banks