Delegation of leaders of Vietnamese state-owned enterprises visited and learned from experience in China.
These enterprises have made important contributions to China's economic and social development, scientific and technological progress, and the improvement of people's social security. The experience of reform and development of Chinese state-owned enterprises has good reference value for state-owned enterprises in Vietnam. Chinese-style modernization has laid a solid foundation for the stable and long-term reform of state-owned enterprises. Chinese- style modernization is a socialist modernization led by the Communist Party of China that not only has the common characteristics of the modernization of other countries, but also has Chinese characteristics based on the actual situation of the country. The five basic characteristics of Chinese-style modernization are “Modernization with a huge population,” “Modernization that makes the whole people rich,” “Modernization that harmonizes material civilization and spiritual civilization,” “Modernization that allows people to live in harmony with nature,” and “Modernization that follows the path of peaceful development.” On the road ahead, China has implemented the five important principles of Chinese-style modernization: “Adhering to and strengthening the comprehensive leadership of the Party,” “Adhering to the path of socialism with Chinese characteristics,” “Adhering to the people-centered development ideology,” “Adhering to reform and opening up,” and “Adhering to the spirit of struggle.” According to the scientific methodology of promoting Chinese-style modernization, promoting Chinese-style modernization is a systematic project that requires comprehensive consideration, systematic planning and overall promotion, and properly handling six important groups of relationships: “Between superstructure design and practical exploration”, “Between strategy and tactics”, “Between integrity and creativity”, “Between efficiency and fairness”, “Between vitality and order”, “Between self-reliance and opening up to the outside world”. The worldview, value view, historical view, civilization view, democratic view, ecological view, etc. and its great practices in the process of Chinese-style modernization are important innovations in the theory and practice of world modernization. Chinese-style modernization is a learning experience for many developing countries to move towards independent modernization and gives them a new choice. Three changes, six aspects in the reform and development of China's state-owned enterprises The reform of China's state-owned enterprises has made "three major changes": First, we continue to promote the reform of the state-owned enterprise system, build and perfect the system of modern enterprises with Chinese characteristics. Second, we continue to promote the reform of the state-owned asset management and supervision system, and establish the status of enterprises as independent market entities. Finally, we continue to promote the reform of the enterprise management mechanism, and stimulate the vitality and intrinsic motivation of enterprises. As a result, China's state-owned enterprises have achieved remarkable results in the new era. That is, “one fundamental strengthening”, “two historic solutions”, and “three systematic reshaping” with the following specific results: “One fundamental strengthening” is that the Party’s leadership and construction work are fundamentally strengthened to focus on effectively promoting the linkage between the responsibility of Party building and the responsibility of enterprise business, promoting the deep integration of Party building with production and business. “Two historic solutions” are the two issues of reforming the equitization of state-owned enterprises and the issue of removing the social/public function of enterprises that have been historically resolved. Accordingly, China has basically completed the restructuring of all 14,700 central state-owned enterprises and 150,400 local state-owned enterprises, affirming the position of state-owned enterprises as independent market entities; And the whole country has completed the reform with the participation of 15 million working families and 20.27 million retirees, many state-owned enterprises have completely shed the burden of history and can participate in fair market competition. The "three systematic reshaping" include: First, systematically reshaping the modern corporate management structure of state-owned enterprises to unify and strengthen the leadership of the Party and improve corporate management; so that the Party organization, the board of directors, and the board of directors of the enterprise all perform their duties and responsibilities according to the law, transparently and coordinate effectively. Second, systematically reshaping the state capital allocation structure to promote the successful implementation of a series of major strategic restructurings, integrating industries according to the principle of marketization. In the past three years, 04 groups of 07 central state-owned enterprises and 116 groups of 347 local state-owned enterprises have carried out strategic restructuring. The tasks of “cleaning up” and divesting from inefficient business sectors and industries have been basically completed. Third, systematically reshaping the state asset management and supervision system to fully implement the responsibilities of state enterprise investors, the responsibilities of state asset management and supervision, and the responsibility for Party building in state enterprises. In addition, it is also to enhance the advantages of professional, systematic, and legal supervision activities. In addition, it is also to strengthen coordination with state asset supervision agencies at the three levels of central, provincial, and municipal. The continuous deepening of state enterprise reform has strongly promoted the development of state assets and high-quality state enterprises have made solid steps. As a result, in the ten years of the new era, the total assets of the state have tripled to 289 trillion yuan, with an average annual growth rate of revenue of 5.9%, an average annual growth rate of total profits of 7.3%, and an average annual growth rate of total assets of 10%. In the new stage, on the new journey, China strives to deepen the reform of state-owned enterprises. China has drawn up a series of new action plans to deepen the reform of state-owned enterprises in line with the changing situation, focusing on improving core competitiveness and strengthening core functions. Accordingly, China is implementing a series of new actions to serve the national strategy, persistently and diligently helping state-owned enterprises develop stronger, better and larger, and effectively playing the strategic supporting role of the state-owned economy. The focus is to continue to deepen reforms around six aspects: First, deepen reforms around strengthening the leading role of industries and promoting the construction of a modern industrial system. That is, we must focus on creating a new development landscape, persistently developing strategic emerging industries and traditional industries in parallel, better planning domestic and international circulation, and promoting state-owned enterprises to achieve high-quality development goals. Second, deepen reforms around accelerating enterprises' scientific and technological innovation and striving to play an important role in technological self-reliance. In order to contribute to building a strong country in science and technology, we should place scientific and technological innovation in an important position, highlight the position of enterprise innovation subjects, cultivate national strategic scientific and technological strength, and create more valuable scientific and technological innovations than "national important weapons". Third, deepening reform revolves around improving the efficiency of state capital allocation and efforts to promote strategic restructuring and professional integration. “Taking enterprises as the subject and marketization as the means” to highlight core business, focusing on industry, paying more attention to intensive development and specialization, promoting the concentration and restructuring of state-owned enterprises, advancing and retreating in an orderly manner, improving quality and efficiency, promoting the rational circulation of state capital and optimally allocating capital. Fourth, deepening reform revolves around perfecting the market-oriented business mechanism and efforts to perfect modern enterprise management of state-owned enterprises with Chinese characteristics. This is done by measures to strengthen the construction of state-owned enterprise boards of directors, give full play to the role of Party organizations in enterprise management, implement a new model of business responsibility system according to the system of modern enterprises with Chinese characteristics, and establish a standardized and efficient income distribution mechanism. Fifth, deepening reform revolves around perfecting the state-owned asset management and supervision system and striving to achieve the unity of relaxation and good management. Strengthening the management and supervision of state-owned asset investors, better connecting the management and supervision of state-owned assets and enterprise management, and perfecting the state-owned asset management and supervision system focusing on capital management. Sixth, deepening reform revolves around creating a fair and competitive market environment and striving to promote the common development of enterprises of all types of ownership. That is, deeply promoting the separation between government and enterprises, the separation between government and capital, perfecting the state-owned asset management and supervision system focusing on capital management, encouraging cooperation in various fields between state-owned enterprises and other owned enterprises, including foreign-invested enterprises, and realizing mutual complementarity and mutual benefit and win-win at a deeper and higher level. In order to serve China's modernization and opening up to the outside world, state-owned enterprises have resolutely promoted reform, followed the path of openness and innovation, and steadily promoted the deepening and upgrading of state-owned enterprise reform to achieve the highest results, while laying a solid foundation for China's economic and social development, and also greatly contributing to the growth and prosperity of the world economy. In fact, some Chinese state-owned enterprises have continuously reformed and developed by leaps and bounds, becoming transnational corporations, leading the world in terms of scale, growth and technology in many fields such as high-speed trains, machinery, lithium batteries, solar panels, construction materials, etc. To achieve the above breakthrough results, Chinese state-owned enterprises have focused on strong and comprehensive reform, specifically: building a correct and appropriate development strategy; Vigorously develop scientific and technological research, take technological innovation and creativity as the driving force for long-term stable development and growth; continuously improve enterprise value and competitiveness through strengthening strategic cooperation and restructuring, mergers to build and consolidate a solid position; persistently carry out internationalization to reach out to the world. Perfect the state-owned asset management and supervision system in China focusing on capital management As part of the overall process of state-owned enterprise reform in China, China has built a centralized state-owned asset management model through the establishment of a state-owned asset management and supervision committee system at both the central and local levels. The main task of the state-owned asset management and supervision committee is to both perform the duties of an authorized investor and manage and supervise the state-owned assets of enterprises; especially to deeply promote the separation between government and enterprises, the separation between government and assets. From the perspective of the relationship between the government and enterprises, it is clear that the government will no longer directly manage enterprises, will no longer manage enterprises by administrative orders, and will establish the market entity status of enterprises. Meanwhile, the separation between the government and assets means that from the perspective of the division of functions in the government, the social/public interest management functions of the government and the responsibilities of state-owned asset investors are performed by different departments and agencies. The State-owned Assets Supervision and Administration Commission of the State Council of China has three responsibilities: One is the responsibility of central enterprise investors. According to the Company Law, State-owned Assets Law and other regulations, 98 central enterprise groups authorized by the State Council of China to perform the responsibilities of investors, enjoy the right to profit from assets, participate in important decision-making and select managers. Accordingly, the board of directors/board of members of enterprises is empowered and has 50% of its members from outside (independent members). The General Director must compete for appointment for a term of 03 years, in case of failing to complete the annual plan, he/she will be considered for resignation. Second is the responsibility of supervising state-owned assets. At the national level, supervising and managing state-owned assets of enterprises from the aspects of establishing, urging and implementing as well as guiding and supervising policies and systems. Third is being in charge of Party building work in central enterprises. Implementing the regulations on the work of the Communist Party of China's Party Committee and the regulations on the work of grassroots organizations of state-owned enterprises, central enterprises are encouraged to fully implement the responsibility of Party building. As a result, by focusing on one focal point, with sufficient resources, theories, and practices from home and abroad, from China, and learning from the West, important areas of the economy and technology are allocated and systematically planned. This model has brought into full play its strength, supporting central enterprises to develop production based on advanced management models, apply digital transformation and the latest technologies and techniques, lead the field, successfully dominate the domestic market and go abroad. By the end of 2022, the overall scale efficiency of central enterprises has achieved results: total assets reached nearly 81 trillion yuan, annual revenue reached 39.6 trillion yuan, total profits reached 2.6 trillion yuan, and tax payments reached 2.8 trillion yuan. In order to perfect the state asset supervision and management system from the central to local levels, in recent times, China has focused on implementing the following five major solutions: First, promoting central enterprises to improve the quality of development. With specific solutions such as: perfecting the performance evaluation system of central enterprise leaders; strengthening the overall planning for layout optimization and structural adjustment; promoting strategic restructuring and professional integration; creating sources of original technology and stimulating creative vitality. Second, strengthening state asset supervision, by: implementing the construction and perfecting of a closed system of investor supervision of business supervision activities, comprehensive supervision and accountability; strengthening internal and external supervision and interaction; Perfecting the supervision and risk prevention mechanism;… Third, continuing to optimize supervision methods. Supervision methods are flexibly introduced and adjusted according to authority and responsibility, and supervision according to law is adhered to. In addition, digital supervision is actively promoted. Fourthly, guidance and supervision of local state-owned assets supervision and management work are strengthened. The State Council and local people's governments, on behalf of the state, perform the responsibilities of state investors towards central and local enterprises, and enjoy the rights and interests of state investors. Therefore, many solutions have been implemented, such as: clearly defining the organizational structure; organizing seminars and training courses; guiding and supervising the work plan of local state ownership; promoting unified coordination of supervision and management regimes; perfecting the system of contact points for guidance and supervision from the central to local levels; and enhancing information exchange within the system. Fifthly, guiding the work of law making and legal management of central enterprises. In recent years, following the overall idea of “building mechanisms, promoting functions, and improving”, China has continuously issued regulations on the management of central enterprises in accordance with the law. Thus, China has effectively managed state assets in enterprises through the construction of a state asset management and supervision system and a legal system on state asset management and supervision. In the new era, China continues to set the task of adjusting and accelerating the improvement of the state asset management and supervision system and the legal system on state asset management and supervision to adapt to the requirements of perfecting the state asset management and supervision system focusing on capital management and strengthening state asset management and supervision./. --------------------------------- References:- The new path of Chinese-style modernization represents a new form of human civilization – Professor Phung Tuan – Former member of the Council of the Central Institute of Party History and Culture Research of the Communist Party of China;
- The Reform and Development Process and Reflections of China's State-Owned Enterprises – Zhou Qiaoling – China State-Owned Assets Supervision and Administration Commission.
- Overview of China's State-owned Assets Supervision and Management System – Policy and Regulation Department of the State-owned Assets Supervision and Administration Commission of the State Council of China.
- Strategic Transition and Internationalization – Zhou Yujin – Party Secretary and Chairman of the Board of Directors of China Building Materials Group Corporation (CNBM).
Dr. Nguyen Van Yen
Member of Board of Directors, Head of Finance - Strategy Department, VNPT Group
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