Vietnam targets 1-3 state-owned firms in global top 500 by 2030

Vietnam aims to have 50 state-owned enterprises (SOEs) ranked among Southeast Asia’s 500 largest companies, with 1-3 of entering the world’s top 500 by 2030, according to a new resolution issued by the Politburo, the country's highest decision-making body.

Resolution 79 on state economic sector development, signed by Party General Secretary To Lam on Tuesday, states that Vietnam will develop a number of strong, large-scale state economic groups and state-owned enterprises with modern technology and international/regional competitiveness.

They will play a pioneering and leading role in enabling domestic enterprises to integrate more deeply into global production and supply chains, particularly in the key and strategic sectors of the economy.

At least three state-owned commercial banks are projected to enter Asia’s top 100 by total assets. The banking sector will focus on developing four state-owned commercial banks to take the lead in technology and governance, serving as core and dominant players in terms of market share and market-regulating capacity.

Looking ahead to 2045, the number of Vietnamese enterprises ranked among the world’s top 500 is expected to rise to five, alongside around 60 enterprises in the top 500 within the region.

The state economy is expected to become a solid foundation ensuring economic autonomy and resilience, working alongside other sectors to realize Vietnam’s goal of becoming a high-income developed nation.

To achieve these goals, the Politburo requests renewed leadership thinking, a comprehensive and transparent legal framework, and the removal of institutional bottlenecks.

Authorities must enforce laws strictly, strengthen discipline, and ensure consistency with international commitments. A clear distinction must be made between non-profit political tasks and business activities within the state sector.

The resolution emphasizes that the state will ensure a fair competitive environment among all economic sectors in utilizing national resources, while encouraging public-private partnerships.

Administrative reforms will continue, with reduced administrative intervention, a shift from pre-approval to post-inspection, and improvements in human resource quality, ensuring market-based income levels.

The Politburo requests completion of national databases, enhanced oversight, and improved evaluation of state capital and asset utilization.

Overlapping inspections and audits must be eliminated, violations handled strictly, lost assets recovered to the maximum possible, and stalled projects resolved promptly to unlock resources.

Regarding land policy, the Politburo reaffirmed that land is a special means of production owned by the entire people and managed uniformly by the state. By the end of 2026, authorities are expected to complete nationwide land measurement, inventory, digitization, and data cleansing, integrating land data with other national databases.

Equal access to land will be ensured across economic sectors, with priority given to land allocation for infrastructure, industry, services, urban development, and social housing.

Infrastructure assets will be developed in a synchronized and modern manner. Vietnam will encourage expanded application of public–private partnership models such as “public investment-private management” and “private investment-public use” to build, manage, and operate infrastructure projects more efficiently.

SOEs will be selectively invested in and developed into large, strong conglomerates capable of leading key industries and sectors. The state will encourage consolidation, mergers, and transfers to maximize sector-wide advantages.

Policies will ensure sufficient capital, interest rate support, and adequate credit for national priority projects or overseas investments assigned by competent authorities beyond corporate plans.

As of the end of 2024, total assets of 671 SOEs, comprising 473 fully state-owned and 198 with more than 50% state ownership, had exceeded VND5,600 trillion ($213.18 billion), up 45% year-on-year. SOEs held dominant market shares in sectors such as energy, telecommunications, and banking, contributing approximately 29% of GDP.

These enterprises generated total revenue of nearly VND3,300 trillion ($125.62 billion), up 24%, with pre-tax profits of nearly VND227.5 trillion ($8.66 billion), a year-on-year increase of 8%. Contributions to the state budget reached nearly VND400 trillion ($15.23 billion), up 9%.

The Politburo stresses the need to promptly review and address inefficient investment projects and loss-making enterprises, clearly identifying and handling the responsibilities of related organizations and individuals. This aims to facilitate bankruptcy or continued restructuring, restoring healthy operations, and preventing prolonged waste and losses.

The State Capital Investment Corporation (SCIC) will be restructured toward professional capital investment, moving toward the establishment of a national investment fund.

Meanwhile, the Vietnam Asset Management Company (VAMC) and the Vietnam Debt and Asset Trading Corporation (DATC) will be strengthened to support the market-based restructuring of SOEs and commercial banks.

State economy plays a leading role

Resolution 79 highlights that the state economy is a particularly important sector and plays a leading role in the national economy.

The state economy serves as an important resource for the state to stabilize the macro economy, guide development, and intervene when necessary. It is equal before the law with other economic sectors, engaging in cooperation and fair competition.

State economic resources must be managed and utilized in accordance with market principles, fully accounted for, and safeguarded against waste and losses. The sector is expected to pioneer innovation, digital transformation, and green transition, while leading key industries and sectors.

The state economy comprises resources owned, managed, and controlled by the state, including land, natural resources, infrastructure, the state budget, national reserves, off-budget financial funds, state-owned enterprises and credit institutions, state capital in enterprises, and public service units.

After nearly 40 years of Doi moi (reform), the state sector continues to play a guiding, leading, and regulatory role. However, the Politburo noted that policies related to the state economy have been slow to adapt, while the management, exploitation, and use of many state-owned resources and assets remain inefficient.

Many SOEs have not performed commensurately with their roles and resources, and their international competitiveness remains limited. Long-standing shortcomings have yet to be addressed, resulting in waste and losses.

The main causes include an incomplete understanding of the role of the state economy in a market economy, an inconsistent legal framework, weak enforcement discipline, limited governance capacity, and insufficient accountability of leadership.

Vietnam aims to become a developing country with modern industry and upper-middle income by 2030, and a developed, high-income country by 2045. Accordingly, the state economy must improve efficiency and fully its leading and pioneering role.