Promoting Role of Military Enterprises in Economic Development

9:49:37 AM | 30/12/2019

Thoroughly grasping and adhering to the Party’s viewpoint and policy on combining economy with national defense and national defense with economy, military enterprises have continuously improved their capacity and performance on the defense front and, at the same time, promoted the role of socioeconomic development to join forces with the Party and the people to foster the cause of national industrialization and modernization.

The formation and development of military enterprises matches with the development of the People's Army of Vietnam. During the two resistance wars, manufacturing factories were formed across the country to serve the army and economic construction. In particular, the establishment of the Department of Military Agriculture on August 23, 1956 was considered an important milestone when the army moved to the economic front on a large scale, tightly and systematically organized. In this period, military units effectively participated in many important projects of the country, like building important strategic roads in the Northwest, Thai Nguyen and Viet Tri Industrial Parks, Bac - Hung - Hai irrigation system. The work efficiency of the army created defense and economic capabilities and enabled the victory of the two wars against colonialist and imperialist aggressions.

Entering the period of national construction and defense, especially the renovation period, military enterprises continue to affirm their role as one of important resources in the cause of national industrialization and modernization. They have gradually met requirements of political tasks, promoted an important role in mobilizing resources for national defense; and manufactured many products that previously had to import from foreign countries.

In recent years, military enterprises have confronted various difficulties due to market mechanism, fierce competition, and inadequate legal system. But with their efforts, characterized by soldierly virtues of Vietnamese warriors, military enterprises have made many positive changes to secure gradual stabilization and development. Many have closely followed market demands, actively upgraded technology, improved product quality to sharpen competitive edge; joined and won bids in many big and important projects. Many can make world-quality products, especially in shipbuilding, information technology, communications, garment and textile, mechanics and plastic industries.

Not only focusing on the domestic market, some military enterprises have bravely invested abroad. When carrying investment, they fruitfully link economic efficiency with national defense and security; maintain and enhance the credibility of the military enterprise community, help promote foreign relations between Vietnam and host countries, and meet requirements of international economic integration and requirements to national defense soon enough and far enough.

Without doubt, in business, military enterprises have upheld their innovation and creativity; strictly abided by regulations on financial management and accounting; operated as approved by the Ministry of Defense; and preserved capital for development.

In 2019, military enterprises were estimated to make revenue of VND252.5 trillion (equal to 100.29% of the yearly plan), a profit of VND44,300 billion (101.12% of the full-year plan), and pay an average monthly income of VND14.5 million to an employee.

The primary political task of military enterprises is to serve national defense and doing business is to support the task of defending the Fatherland. On the economic front, they must constantly improve their capacity and competitiveness. Therefore, to boost its role in national economic development in the current time, military enterprises need to implement consistent solutions: (1) regularly carrying out effective communications on and education of the functions and tasks of joining economic construction and development of the army for officers, soldiers and people; (2), accelerating arrangement, innovation, development, and performance improvement of military enterprises in each period; (3), expanding foreign economic activities, enhancing independence and autonomy of military enterprises; actively participating in international economic integration; (4) further improving economic and financial management mechanism and policies for better operation of military enterprises; (5) improving the managerial and supervisory role of competent authorities, role of owner representatives and controllers at the enterprise.

A harmonious combination of national defense with economy, culture and society is a consistent strategic policy of the Party and the State of Vietnam. Promoting the role of military enterprises in the country's economic development is of important significance as it helps socioeconomic development and successful fulfilment of the cause of national construction and defense in the new context.

Major General, Dr. Tran Dinh Thang
Director of Economic Department, Ministry of Defense