At the meeting, the Party Central Committee approved several resolutions and conclusions, including resolutions on “completing the socialist-oriented market economy institution”, “continuing to re-organise, renovate and improve the efficiency of State-owned enterprises” and “developing the private economy into an important driving force of the socialist-oriented market economy”.
The committee agreed that the socialist-oriented market economy is a theoretical and practical issue in the country’s economic development policy, a creation of the Party for the general economic model in the transitional period to socialism in Vietnam.
The socialist-oriented market economy Vietnam is building is an economy operating in line with the rules of a market economy while ensuring socialist orientations suitable to each development stage of the country. It will be a modern and internationally integrated economy under the management of a socialist law-governed state led by the CPV, for the goal of “prosperous people, strong country, and democratic, equitable and civilised society”.
In his closing speech, Party General Secretary Nguyen Phu Trong stated that completing the socialist-oriented market economy is a strategic task and will be an important breakthrough, creating momentum for rapid and sustainable development.
Perfecting the economy must be coupled with renovating the organisation of the whole political system, defining and performing the position, role, functions and relations between the State, the market and society in conformity with the market economy, ensuring socialist orientations, and maintaining and enhancing the leadership role of the CPV.
The Party chief stressed that when implementing the Resolutions of this meeting, the entire political system needs to agree on the socialist-oriented market economy while leading the implementation of set tasks and measures.
“In this tenure, we have to focus on performing five key tasks, including completing the institution for mobilising, allocating and effectively using resources and the institution for distributing outcomes to liberate the production force, create momentum and resources for growth and development, ensuring social progress and equality, national security and defence,” he noted.
It is necessary to improve the business and investment climate, with breakthrough policies to remove difficulties for businesses and facilitate their development, while stepping up administrative and judicial reforms, he said.
“While perfecting the institution on science-technology application and development, education and training and human resources development, especially high-quality personnel, in order to take advantage of the achievements of the fourth Industrial Revolution; we should renovate the growth model and increase productivity, quality and competitiveness of the economy,” he added.
Party leader Trong also noted the need to improve the management efficiency and effectiveness of the economy and the State’s capacity to create development, especially the ability to institutionalise the Party’s guidelines and implement State policies and laws.
“We must renew the leadership methods of the Party, perfect the institutions controlling power, streamline the personnel apparatus, build a contingent of capable and virtuous cadres and improve the quality and efficiency of the work of the entire political system,” he said.
The committee agreed that despite shortcomings and weakness, State-owned enterprises (SOE) have shown efforts to improve by renovating themselves, with fruitful outcomes.
Along with policies and mechanisms, SOEs are an important tool for the State to implement macro-economic policies, deal with market fluctuations and control inflation.
SOEs have also contributed to socio-economic infrastructure development, helped transform the economy, served as a great income source for the State budget, helped fulfill defence-security tasks and ensured social welfare.
Party General Secretary Trong said that it is crucial to lead and direct the restructuring of SOEs, enhancing their effectiveness and promoting their key role in the State-owned economic sector. At the same time, it is necessary to implement plans adopted by the Party Central Committee, he said.
He highlighted the need to shift the majority of SOEs into a combined ownership structure and list their shares on the stock market to optimise economic effectiveness.
The Party leader also urged handling ineffective and loss-causing groups, corporations, enterprises and projects, including by announcing their dissolution or bankruptcy.
Meanwhile, restructuring SOEs must meet international standards on business governance, driving them towards the market mechanism towards self-reliance, self-responsibility and equal competition with businesses from other economic sectors in line with the law, ensuring openness, transparency and accountability, he stated.
He also asked for continued reforms of SOEs to improve their management efficiency and monitoring of their operations, preventing losses and waste of State resources.
He urged clarifying the State’s role in managing all business forms in general enterprises and State capital contributions to businesses, adding that it is necessary to complete the model of managing, monitoring firms and State capital. By 2018, a specialised agency will be formed to represent State ownership in SOEs, joint stock companies and State capital, he said.
The Party leader also request measures to prevent the forming of “interest groups” and “backyard” controlling operations of SOEs for private benefits and corruption, he said.
After 30 years of doi moi (renewal), the private economic sector has played an important driving force in the development of the socialist-oriented market economy in Vietnam. The private sector accounts for 39-40 per cent of GDP, with several major private economic groups and an increasing number of entrepreneurs.
The entire political system must spare no effort to promote achievements and overcome shortcomings while implementing policies from the meeting, the committee requested.
The committee stressed the need to renew thinking and raise awareness of private economic development, considering it a necessary requirement for the development of the socialist-oriented market economy.
The committee asked for attention to developing the private economy in a fast, healthy and appropriate manner so it becomes important momentum for production and development, along with the State economy and collective economy to ensure the building of an economy of independence, self-reliance and international integration.
The committee also underlined facilitating the private economic sector’s development and promoting the development of all forms of production, business, and goods and service provision in the production network and market value chain between the private economy, State economy, collective economy and foreign-invested businesses.
It is necessary to improve the performance of small- and medium-sized enterprises, businesses and startup movements, facilitate households and individuals’ connections to form firms or other co-operation forms and to encourage individuals to make financial contributions to private economic groups as well as to state economic groups, the committee stressed.
The Party chief emphasised that the State and cadres and public servants need to make a breakthrough in thinking and action, and accelerate administrative reform to facilitate the private economy’s development, while strengthening inspection and supervision.
Entrepreneurs and enterprises should be more proactive in business management, improving performance and competitiveness of their firms, while increasing production connectivity, joining local, regional and global production chains along with focusing on human resources development and research and application of science-technology.
He stressed the observation of law, especially laws on corporate social responsibility, protection of the rights and interests of labourers, environmental and natural resources laws, and food hygiene and safety laws.
The committee asked the Political Bureau and Secretariat to show stronger resolve to fulfill set tasks and address pressing issues of public concern. The move also aims to reinforce confidence among officials, Party members, and the public in the Party.
At the plenary meeting, the committee gave an official warning and dismissed Dinh La Thang, a Politburo member and Secretary of the Ho Chi Minh City Party Committee, from the Politburo of the 12th Party Central Committee for his past financial wrongdoings as head of the National Oil and Gas Group (PetroVietnam).
The committee concluded that Thang had committed “very serious wrongdoings and violations in management” as a member of the 10th Central Committee of the Communist Party of Vietnam, Secretary of the Party Committee and Chairman of the Board of PetroVietnam from 2009-2011.
It said the wrongdoings and violations hurt the reputation of Party organisations, his personal reputation and caused a loss of confidence among the people and other Party members.
Closing the meeting, Party General Secretary Trong said the three resolutions adopted at the meeting are significant to carrying out key tasks on socio-economic development set by the 12th Party Congress.
He said the report reviewing the leadership of the Political Bureau and Secretariat in 2016 and discipline against Party officials will likely contribute to consolidating confidence among Party officials, members and the public in the Party.
The Party chief called on each member of the committee to carry out their responsibilities, together with all-level Party committees and authorities, to instruct the implementation of the 12th Party Congress’s Resolution and other resolutions as well as conclusions of the committee.