This morning, Chairman Nguyen Van Duoc of the Ho Chi Minh City People's Committee chaired a meeting focused on addressing challenges and obstacles faced by state-owned enterprises (SOEs) under the Committee’s jurisdiction.
The meeting also explored measures to enhance the operational effectiveness of these enterprises. In attendance were Vice Chairman Nguyen Van Dung of the Ho Chi Minh City People's Committee, along with representatives from all 100 percent state-owned enterprises managed by the Committee.
Chairman Nguyen Van Duoc of the Ho Chi Minh City People's Committee stated that the current management structure of state-owned enterprises (SOEs) is overly complex and cumbersome, likening it to a "tight, multi-layered shirt" that is difficult to manage. He emphasized the need to restructure SOEs and adopt new operating models in order to open up space for development, combat waste, and enable further growth.
Speaking at the meeting, Chairman Nguyen Van Duoc commented that SOEs have made positive contributions to the development of Ho Chi Minh City. However, recently, there have been many reasons leading to signs of decline in the role and contribution of SOEs, partly because the management agencies have been slow in proposing solutions and removing difficulties for enterprises, and partly because enterprises have not proactively proposed solutions. Therefore, there needs to be effective solutions to promote the role of SOEs in the city, making greater contributions to the development of Ho Chi Minh City.
Having listened attentively to the challenges and future development proposals from leaders of state-owned enterprises, Chairman Nguyen Van Duoc acknowledged the difficulties these enterprises encounter in Ho Chi Minh City. He instructed the Standing Committee of the municipal People's Committee, along with relevant departments and sectors, to prioritize resolving the challenges and obstacles for businesses, particularly those related to wages and employee income.
Moreover, he commented that SOEs currently operate under a complex, multi-layered structure that is difficult to manage. He emphasized the need to restructure SOEs to open up new development opportunities, reduce waste, and explore new operating models.
The Chairman stressed that the restructuring of SOEs must prioritize the interests of the people and the city, avoiding the privatization of public assets, especially in the context of equitization and capital contributions. He underscored that each leader must put the collective, public interests first to enhance the strength, efficiency, and manageability of SOEs.
To facilitate the SOE restructuring process, the Chairman has tasked the Department of Finance to work with the Ho Chi Minh City Institute for Development Studies. They will mobilize experts to develop a comprehensive project reviewing and classifying SOEs based on their functions, tasks, and ownership structures. This effort will be coordinated with neighboring provinces of Binh Duong and Ba Ria - Vung Tau, and the findings will be implemented citywide upon completion of the provincial-level restructuring.
