It is expected to contribute to guiding and leading the market, playing a pillar in the economic and social development of the city.
It's necessary to rearrange
The plan for reorganizing state-owned enterprises and enterprises with state capital under the management of the HCMC People’s Committee until the end of 2025 was launched on August 1 in order to implement the Prime Minister’s Decision 184 issued in February 2024 on reorganizing state-owned enterprises and enterprises with state capital.
According to Chairman of the municipal People's Committee Phan Van Mai, the implementation of the Prime Minister’s Decision 184 must go associated with the restructuring of state-owned enterprises to create a new driving force for these businesses and revive HCMC’s state-owned enterprises with an even more significant mission.
It is a powerful tool for the city government to operate the economy within the context of implementing the market economy. A number of issues have been launched, such as the possibility of grouping existing state-owned enterprises into categories such as infrastructure, services, and technology. For instance, the category of infrastructure includes Saigon Real Estate Corporation (RESCO), Saigon Construction Company, and Saigon Industry Corporation while Saigontourist Holding Company and Benthanh Group belong to the sector of services.
Currently, HCMC has 46 state-owned enterprises, including 22 public service companies. According to a number of opinions, the city needs only 4-5 public service companies instead of having one in each district.
Alongside the processes of equitization and divestment, state-owned enterprises in HCMC should be reorganized to invest in resources and focus on mechanisms and personnel to create strong economic entities. These units would serve as management tools in the sectors that need the presence of state agencies. For the areas where the private sector can perform effectively, it is advisable to allow private enterprises to take on those roles.
SOE reorganization needs a clear roadmap, specific policies
The number of state-owned enterprises in HCMC is higher than in other localities, significantly contributing to the city's development.
According to Director of the HCMC Department of Planning and Investment Le Thi Huynh Mai, it is essential to strongly develop state-owned enterprises. However, it needs to build a clear roadmap and have specific policies.
Leaders of the HCMC Department of Finance also highly appreciated the reorganization of state-owned enterprises to help the city’s authorities operate and manage the economic and social development aligning with the current situation.
In August 2022, the HCMC People's Committee issued Decision 2916 on issuing a plan for reorganizing state-owned enterprises under the management of the municipal People’s Committee in the 2022-2025 period. The project aims to effectively enhance business and production activities, improve competitiveness and profit margin, and increase revenue for the city’s budget.
Under the plan, HCMC will address issues of scattered and non-core investments, select some enterprises in the post-equitization period that meet the necessary conditions for stock registration and listing on regional and global stock markets, and inspect the current status of each enterprise.
Head of the HCMC Enterprise Management and Innovation Board Tran Anh Tuan said that up to now, state-owned enterprises in the southern metropolis have submitted their restructuring projects. It is expected to be completed in the third quarter of 2024 according to the schedule assigned by the Prime Minister.
