The mission of large private enterprises before the "Era of national rise"

The Government Standing Committee Conference with large private enterprises (PPEs) taking place today (September 21) is a special event in a special context, when we are preparing to enter a new era, the Era of national growth, as stated by General Secretary and President To Lam.

This is the first conference of the Government Standing Committee with representatives of large private corporations to remove difficulties, promote the pioneering role, proactively participate in investing in large projects, contribute to promoting socio-economic development and put corporate social responsibility first.

Government Standing Committee Conference with large private enterprises. Photo: Vu Khuyen

The event took place right after Typhoon Yagi caused initial estimated damage of nearly VND50,000 billion. This figure may increase as more people and businesses report their losses to the government in more detail. This is a socio-economic blow because Typhoon Yagi and its aftermath had a very large area of ​​influence, spanning 26 provinces and cities in the entire North and Thanh Hoa, which account for over 41% of the country's GDP and 40% of its population. This region has many provinces that are industrial, agricultural, and tourism centers, which are the growth engines of the country.

Faced with this situation, many private corporations have immediately announced very large support packages. Most notably, VinGroup announced a sponsorship of 250 billion VND for emergency relief activities such as rebuilding about 2,000 collapsed houses. Banks such as SHB, VIB, MBBank, SeABank each donated 2 billion VND. Many other private corporations are also calculating and balancing support packages in the face of this widespread natural disaster. Joining hands with the State, it is clear that private enterprises are performing their social responsibility role very well.

Minister of Planning and Investment Nguyen Chi Dung speaks at the Government Standing Committee Conference with large private enterprises.

According to a report by the Ministry of Planning and Investment, in 2023, the private economic sector (PES) will contribute about 46% of GDP, generate about 30% of state budget revenue, and attract 85% of the workforce. Among them, a large private enterprise force has emerged, accumulating sufficient capacity in terms of capital scale, technology level, and corporate governance, with brands in regional and world markets, becoming an important driving force of the economy.

Although a team of medium and large enterprises has emerged, this force has not really led the economy as expected. The proportion of investment in leading and motivating industries and fields, especially in new fields such as clean energy production, chips, microchips, semiconductors, etc., is still low, and there are no large-scale projects to create breakthrough momentum, spillover, support restructuring and improve the competitiveness of the economy.

Mr. Pham Nhat Vuong, Chairman of Vingroup Corporation

The development process of our country's business community is still young compared to other countries in the region and the world, and has not yet accumulated much capital, knowledge, technology, experience, and business traditions. The scale of enterprises in the economy is mostly small and medium, without original technology, and lacking the potential to digitize and green business activities. The proportion of enterprises participating in the manufacturing and processing sector is still limited.

By the end of 2023, the total assets of some large private enterprises will reach about 70 billion USD. Thus, the total assets of the largest private corporations in Vietnam are only equivalent to the assets of Infosys Corporation, India. That is not to mention when compared with the world's leading corporations in the fields of real estate, science, technology, automobiles, etc. of other economies.

According to the World Bank (WB) estimates, 80% of global profits are generated by the 10% largest enterprises, large enterprises on average contribute up to 1/3 of export turnover, half of the country's export growth rate. With a market of 100 million people and growing strongly like Vietnam, private enterprises have a lot of space to develop and Vietnam is also eager to have large corporations that can compete in the international market, not just domestically.

2024 is a year of acceleration and breakthrough, which is of special significance in the successful implementation of the 2021-2025 Socio-Economic Development Plan. Right from the beginning of the year, the Government issued Resolution 01/NQ-CP identifying 12 groups of important tasks and solutions, many of which require the key participation and joint efforts of large enterprises such as: Developing infrastructure systems (highways, airports, ports, digital infrastructure, social infrastructure, healthcare, education); speeding up the construction progress of important national transport infrastructure projects.

Implement the Power Plan VIII, effectively implement the Declaration on converting coal to clean energy; attract investment in gas-fired power projects, offshore wind power and hydrogen development in Vietnam. Develop and popularize traditional telecommunications infrastructure to digital infrastructure; promote the development of digital economy, green economy, circular economy. Promote research and development (R&D) activities, attract investment to develop key industries, platform industries and emerging technologies (semiconductor chips...).

To play a pioneering and leading role in key industries and fields; master the industrial and agricultural value chain, and have international competitiveness in basic, priority and spearhead industries, according to the Ministry of Planning and Investment, large enterprises need to proactively take the lead and pioneer in big, difficult and new tasks, solving problems at the national level to create momentum for economic development and create room for development for SMEs in other fields.

Large enterprises need to proactively take the lead and pioneer in big, difficult, and new tasks.

With financial potential, research and development capacity, high-quality human resources, extensive experience and long-standing brands, it is time to place greater missions on the shoulders of large enterprises. In addition to business activities aimed at generating revenue and profits, large enterprises need to join with large corporations and state-owned corporations to invest in new areas of the 4.0 industrial revolution, meeting the requirements of shifting towards green, circular and sustainable development trends, such as electric vehicles, semiconductor industry, artificial intelligence AI, high-quality and low-emission agriculture, etc., participating in major projects of the country such as the North-South high-speed railway, urban railway, Vientiane - Hanoi Expressway; Vientiane - Vung Ang Railway, renewable energy, offshore wind power, etc.

Large enterprises need to promote their pioneering role in innovation, digital transformation, application and mastery of science and technology in the era of the 4th industrial revolution; pioneer in international integration, effective investment abroad; pioneer in effectively exploiting the country's resources; pioneer in research and implementation of breakthrough policies for socio-economic development in parallel with improving social security; pioneer in training high-quality human resources, smart management in business development. Large enterprises need to promote their role as "leading enterprises", technology transfer, proactive joint ventures, associations, orientations, leadership, creating opportunities for SMEs to participate as subcontractors to develop together along the value chain.

In the coming time, it is hoped that enterprises will continue to promote national pride, historical traditions, endogenous strength, self-reliance and self-improvement; proactively seize opportunities, have plans to adapt to future fluctuations; anticipate new business trends; innovate models towards green and sustainable business; focus on enhancing brand value, business ethics, corporate culture; build the reputation and brand of Vietnamese enterprises in the regional and international markets.

Source: https://vov.vn/kinh-te/su-menh-doanh-nghiep-tu-nhan-lon-truoc-ky-nguyen-vuon-minh-cua-dan-toc-post1123028.vov