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Renovation of awareness on State enterprises in the socialist-oriented market economy and international integration
27/9/2012 10:32' Send Print

In practice, the Party and State on the one hand has reduced the number of State enterprises and selected suitable areas for State enterprises, on the other hand have renovated macro and micro management over State enterprises.

However, by now, State enterprises have fallen short of expectations of the people and state agencies in terms of specialized economic effectiveness, benefit division, structure suitability  which represent new method of production.

1. Major cause of State enterprises’ weaknesses lies in macro management. To overcome this constraint, it is necessary to review and build clear mechanism of control, responsibilities and penalties for individuals and organizations that are using state capital while downsizing state investment in areas that private sector fares more effectively.

2. There are a lot of errors in micro management of State enterprises. It is necessary of renovate State management and salary policies towards individuals who represent the state capital in enterprises. Laws should be developed to regulate rights and obligations of representatives of state capital in enterprises to control their behaviors for national and people’s interest and prevent and limit abuse of state capital for the benefit of individuals and influential groups in enterprises. In addition, auditing authorities and anti-corruption agency should be better empowered. They should be independent from line agencies that manage representatives of state capital in enterprises.

3. A number of State enterprises monopolize and use large amount of state financial resources. However, their service quality is not remarkably satisfactory. Different observations of State agencies on a State enterprise caused suspicion among people. To overcome this constraint, enterprises should be transparent. The State Auditing agency should be more independent in its auditing decision and presentation of their auditing reports to the National Assembly and media. The National Assembly should enhance its role of investigation and oversight of key state enterprises that use large amount of State capital. Anti-corruption agencies should be independent in their investigation of State enterprises that relate to embezzlement and corruption of State asset.

The following issues must be made clear. Is the model of State enterprises which is suitable to the current market economy real representatives to socialist production relationship that Viet Nam wish to build? By the 11th Party Congress, our Party ceased to confirm that “public ownership” is the nature of production relationship established at the end of the transitional period and that the production relationship to be built is the relationship that facilitates the development of production forces to their full potentials. Hence, the issue of State enterprises should be solved based on their effectiveness. It is a vital and practical demand that State enterprises hold key positions in the economy. In other words, State enterprises’ key role is a necessary condition. Sufficient condition is needed to build a model for State enterprise to operate effectively without deviating from socialist orientation. To ensure their effectiveness, it is necessary to redesign mechanism on authorization, responsibility contract, monitoring and an appropriate policy on cadres./.

Vu Van PhucAssoc Prof. Ph.D, Editor-in-Chief of the Communist Review