Defining New Dimensions of State Economy

For the first time, the scope of the state economy has been fully and systematically defined in a thematic resolution, clarifying its role and expanding its reach.

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At the recent national conference to study and implement Resolution 79-NQ/TW of the Politburo on developing the state economy and Resolution 80-NQ/TW on developing Vietnamese culture, Chairman of the Party Central Committee’s Commission for Policies and Strategies Nguyen Thanh Nghi presented the key content and new breakthrough points of the resolutions as Vietnam enters a new stage of development.

New scope of the state economy

According to Nguyen Thanh Nghi, this marks the first time the scope of the state economy has been fully and systematically defined in a thematic resolution, clarifying its role and expanding its reach. The state economy is identified as a particularly important component of the socialist-oriented market economy.

It is defined as a unified whole that includes all resources owned, managed, and directed by the State to achieve socio-economic development goals, maintain macroeconomic stability, and ensure national defense and security. These resources include land; mineral and water resources; airspace and maritime areas; underground space; State-invested infrastructure systems; the state budget; national reserves; state financial funds outside the budget; state-owned enterprises; state credit institutions; state capital invested in enterprises; and public service units.

Resolution 79 affirms that over 80 years of development, particularly during 40 years of Doi Moi (renovation), the state economy has consistently played a leading role. It has participated directly in production and business activities while serving as a key source of material resources and a strategic tool for the State to guide and regulate economic activities, promote growth, maintain macroeconomic stability, safeguard major economic balances, ensure national defense and security, strengthen autonomy and self-reliance, and advance rapid, sustainable socio-economic development in line with socialist orientation.

At the same time, Resolution 79 points to existing limitations, including the slow reform of policies and laws governing the state economy, which have not kept pace with practical developments.

State-owned enterprises (SOEs) have not operated as effectively as their position and resources would suggest. Their competitiveness remains limited, they have yet to play a leading role in innovation or in key sectors, and reform efforts have moved slowly.

Five breakthrough guiding perspectives

Amid a complex domestic and international environment, and with the goal of strengthening the role of the state economy in achieving the country’s two centennial strategic objectives for 2030 and 2045, Resolution 79 sets out five overarching guiding perspectives for developing the state economy in the new era.

First, it calls for renewing, supplementing, and clarifying the leading role of the state economy within the socialist-oriented market economy.

Building on earlier resolutions, the document reaffirms the state economy’s central function in maintaining macroeconomic stability and major economic balances, while further specifying its responsibilities in shaping strategic development orientation, safeguarding national defense and security, promoting cultural values, social progress, equity, and social welfare, and serving as an important resource base for timely State intervention in urgent or unforeseen circumstances.

Second, it defines a clear relationship of co-development between the state economy and other economic sectors, ensuring that each sector fully performs its respective functions.

Third, it focuses on improving the management, exploitation, and use of state economic resources. The Resolution introduces new mechanisms for allocating and managing these resources, including two major innovations. All state economic resources must be fully reviewed, inventoried, evaluated, and accounted for in accordance with market principles, with investment impacts assessed through social cost-benefit analysis aligned with international practice. At the same time, bottlenecks must be removed to unlock resources, prevent loss and waste, and ensure effective management and utilization. It also calls for clearly separating the use of state resources for public goods and political tasks from commercial production and business activities, while properly balancing the relationship among the State, the market, and society.

Fourth, it elevates the mission of the state economy in connection with the transformation of the growth model. The state economy must take the lead in promoting industrialization and modernization, restructuring the economy, and establishing a new growth model driven primarily by science and technology, innovation, and digital transformation.

Fifth, it calls for strengthening Party leadership and improving the capacity, effectiveness, and efficiency of state management over the state economy, particularly in guiding resource allocation and implementation.

Developing strong state corporations to lead key sectors

Nguyen Thanh Nghi said that to address existing shortcomings, the Resolution sets out seven groups of tasks and solutions across seven areas, including land, water and mineral resources, the marine economy, airspace, the outer space and low-altitude economy, underground space, digital resources, and telecommunications resources. Several priority measures will be implemented.

In 2026, Vietnam will complete nationwide land measurement, inventory, digitization, and data cleansing, and connect land databases with other national data systems. Amendments to the Land Law and related guiding documents will be issued to remove management bottlenecks and unlock land resources.

Exceptional mechanisms and controlled sandbox frameworks will be introduced to promote the development of the space economy, low-altitude economy, and the aviation and aerospace industries. Legal frameworks governing digital and telecommunications resources will be refined to develop data markets, data exchanges, and the digital economy, turning national data into a strategic resource.

Regarding state financial funds outside the budget, Resolution 79 calls for streamlining the system, reducing focal points, increasing scale, avoiding unnecessary new funds, merging or dissolving ineffective funds, and expanding entrusted management through professional financial institutions to improve capital efficiency.

For SOEs, Resolution 79 sets out 17 groups of tasks under four main pillars: ensuring SOEs serve as a significant material force within the state economy; promoting investment in science and technology, innovation, digital transformation, and green transition for sustainable business performance; improving corporate governance; and restructuring state capital and reorganizing SOEs.

Resolution 79 clearly directs investment toward developing several large-scale state economic groups and strong SOEs capable of leading strategic sectors such as national defense and security, energy, transportation, logistics, finance and banking, science and technology, electronics and telecommunications, digital infrastructure, strategic minerals, chemicals, and construction. Policies will support increases in charter capital, ensure adequate funding, provide interest rate support, and secure sufficient credit for key national projects.

SOEs are encouraged to pioneer research and application of science and technology, invest in partnerships to master core and strategic technologies, promote innovation, digital and green transformation, develop the circular economy, and reduce greenhouse gas emissions. Mechanisms will allow the establishment of venture capital funds.

SOE performance will be evaluated based on assigned objectives and tasks, with full accounting of state advantages and resources in line with international practice, and a clear separation between commercial operations and political or non-profit missions.

“The new direction of Resolution 79 regarding equitization is to ensure that the State’s control in strategic sectors is not affected and that reputable national brands are preserved,” Nguyen Thanh Nghi said.

Regarding state divestment, the Resolution introduces a new approach: for enterprises in which the State does not need to retain controlling shares, appropriate mechanisms and roadmaps will allow mergers into other SOEs or transfer to state capital investment entities at the central or local level, ensuring transparency and efficiency under the principle that the State undertakes activities the private sector cannot or will not undertake, while performing more effectively in areas where the private sector is capable. Reputable national brands will continue to receive investment to enhance performance. The State Capital Investment Corporation will be restructured toward professional capital management, with the aim of forming a National Investment Fund.

The network of state-owned commercial banks will be reorganized, ensuring transparency and accountability. Increasing charter capital is regarded as an important solution to strengthen financial capacity, capital adequacy ratios, and operational efficiency.

The Resolution calls for shifting public service activities with strong potential for socialization to market mechanisms, expanding public-private partnerships, and encouraging non-state participation in public service provision. Public service units in suitable sectors will be converted into single-member limited liability companies.

Source: Vietnam Business Forum