HCMC – The Ministry of Planning and Investment has proposed that Mobifone, Vietnam Electricity Group (EVN) and Viettel be entitled to special policies to boost their leading positions and help other State-owned enterprises establish and expand production, supply and value chains in both local and foreign markets.
The ministry has submitted a draft plan to the prime minister to develop large-scale State-run enterprises, of which the above three firms, representing the telecom, energy and defense industries, have been chosen, news site Vnexpress reported.
According to the ministry, there are five criteria for large-scale State-owned enterprises, including having a charter capital of more than VND1.8 trillion; reaching a market share of at least 30% and being capable of expanding markets or increasing market shares; having good governance systems which help save costs, improve the effectiveness of the capital use and apply science and technology; operating in sectors where the State does not have a monopoly such as infrastructure, industry, energy, telecom and finance-banking; and being wholly or partly State-owned enterprises.
Mobifone, EVN and Viettel, besides meeting these five criteria, are appropriate for socioeconomic development strategies in the next decade.
They operate in sectors important to the development and security of the country as they provide essential input materials for production and business activities in the digital transformation era and the fourth industrial revolution.
In the telecom sector, the Ministry of Planning and Investment proposed MobiFone as it has reported positive business performance. In addition, it has an effective governance system.
Mobifone has planned to focus on the digital transformation and development of digital transformation products for private enterprises, including small and medium ones, which is attractive to investors and a foundation to form connections.
In the energy sector, the electricity volume generated by EVN’s plants is nearly equal to 50% of the country’s electricity volume. Moreover, EVN has experience in investing in the energy sector, especially clean energy.
Meanwhile, Viettel is a leading firm in researching, developing, manufacturing and trading in military equipment and other products meeting defense and civil purposes.
Additionally, Viettel is developing industries, focusing on hi-tech defense, electronics and telecom and cybersecurity. It has set a target to be listed among the 80 enterprises with the highest revenues from defense activities in the world.
Based on their characteristics, the Ministry of Planning and Investment has worked out solutions for them. Specifically, MobiFone’s equitization will be accelerated. The ministry will propose the prime minister should add MobiFone to the list of telecom services providers with network infrastructure owned by the State. Foreign strategic shareholders will not be chosen for this mobile network provider.
The ministry has also proposed establishing a complex, including EVN, to study offshore wind power projects and encouraged the State Capital Investment Corporation to coordinate with EVN to invest in renewable energy projects with the participation of the Vietnam Oil and Gas Group.
For Viettel, the ministry proposed setting up a defense industry development fund, sourced from Viettel’s after-tax profit. Viettel will use the fund to serve activities relating to the development of the defense industry.
In addition, it should establish an innovation fund and a venture fund and develop high-quality human resources, especially leading experts in the information technology and hi-tech industries.
Since 2005, 13 large-scale State-owned economic groups have been developed on a trial basis. They have contributed significantly to the country’s socioeconomic development and price stabilization.
However, their organizational structure and operations have shortcomings, their performances have yet to correspond with their resources and their competitiveness remains low. Therefore, the plan to develop large-scale State-owned enterprises is aimed at improving the effectiveness of their operations and paving the way for firms in other economic sectors.