The concept of a market economy is a characteristic of capitalism. This is completely contrary to the centrally planned economy under the Soviet model of communist countries, in which state-owned enterprises (SOEs) are prioritized, favored and are the driving force of the economy.
The Vietnamese leadership always affirms that Vietnam is a socialist country, but on the other hand, they still ask the United States and Western countries to recognize “Vietnam has a market economy.”
This is extremely contradictory.
Vietnam’s state-controlled media recently reported that “134 state-owned enterprises lost more than VND115 trillion.” According to the Government’s report, by the end of 2023, 134 state-owned enterprises had accumulated losses of VND115.27 trillion ($4.6 billion).
Accordingly, in 2023, Vietnam Electricity Group (EVN) was one of the most loss-making enterprises, with a loss of VND26.7 trillion. Vietnam Cement Corporation VICEM lost VND1.078 trillion. Vietnam Airlines Corporation lost more than VND8.85 trillion in 2022 and 2023. At the end of 2023, Vietnam Airlines’ equity was negative VND8.377 trillion.
There are still a few state-owned enterprises operating exclusively that reported profits, such as Vietnam Oil and Gas Group PVN, with a profit of nearly VND56.4 trillion. Vietnam National Coal and Mineral Industries Group TKV made a profit of VND6.3 3 trillion. Viettel Military Telecommunications Group earned VND46.331 trillion.
According to statistics, by the end of 2023, the equity of state-owned enterprises reached more than VND1.8 million billion. However, in 2023, state-owned enterprises only contributed more than VND365.5 trillion to the budget. This is a very modest profit figure, as well as the ineffective use of business capital of state-owned enterprises.
In a market economy, there is a very important principle that needs to be thoroughly applied. That is, in any field that the private sector can undertake, state-owned enterprises will not participate, and all state-owned enterprises must be equitized to ensure the most effective business results.
A question arises, why have a series of state-owned enterprises in Vietnam been operating at a loss for many years, but none of them have declared bankruptcy?
On the contrary, the leaders of these enterprises are still getting rich quickly, and Vietnam Electricity Group (EVN) is a typical example.
In 2023, the most scandalous ranking of the year will certainly belong to the Ministry of Industry and Trade and EVN. This is the agency that has had many leaders involved in corruption, prosecuted, arrested, and disciplined the most.
In just the first 5 months of 2023, EVN has increased electricity prices twice, with a total increase of 7.5%. The non-transparent and indiscriminate price increases of EVN and the Ministry of Industry and Trade have made it even more difficult for businesses and people who are currently facing difficulties.
Why don’t the Party and the State allow the equitization of Vietnam Electricity Group EVN, and give up the monopoly in the electricity business?
Answer: Because this has been a major policy of the Communist Party of Vietnam for a long time. They have always maintained EVN as a “bogeyman.” At the same time, they use EVN as a scapegoat, with the purpose of dumping all losses on electricity price increases, forcing people to bear the burden instead of the state.
Therefore, the commander-in-chief of the interest group of the electricity industry, none other than former Head of the Central Committee’s Economic Commission Tran Tuan Anh, despite showing signs of creating conditions for interest groups to profit, has not been handled and is still safe and sound.
According to experts, for the reform to be successful, the Vietnamese Government needs to immediately privatize state-owned enterprises. At the same time, allow the private sector to participate in special fields, to increase competitiveness. This is a prerequisite, and it will create conditions for the Vietnamese economy to take off.
Tra My – Thoibao.de
