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Official Gazette

Tuesday, May 30, 2017

Party to focus on socialist-oriented market economy

Updated: 09:13’ - 08/05/2017
The Communist Party of Vietnam Central Committee opened its fifth plenary meeting of the 12th tenure in Hanoi on May 5.

During the meeting, the Party Central Committee will debate improving socialist-oriented market economy institutions and rearranging, reforming and improving state-owned enterprises.

The Committee will also review the implementation of the 15-year-old 9th Party Central Committee’s Resolution on the development of the private economic sector and will consider disciplinary measures against party members.

Speaking at the opening ceremony, Party General Secretary Nguyen Phu Trong suggested several issues to be discussed at the session.

The Communist Party of Vietnam Central Committee opened its fifth plenary meeting of the 12th tenure in Hanoi on May 5__Photo: VNA

Over the past 10 years, the implementation of Resolution of the sixth session of the 10th Party Central Committee on “continuing to complete the socialist-oriented market economy mechanism” has contributed to economic growth and moving Vietnam from the group of less developed countries to the group of developing countries with middle income. It also helped maintain the country’s socialist orientation, developed the economy coupled with social progress while improving the people’s material and spiritual life, and ensuring social welfare and defence.

However, he pointed out shortcomings, especially in achieving sustainable economic growth, a lack of breakthroughs in using resources for development, state-owned enterprises failing to perform, slow economic reforms and the slow development of some markets.

The Party chief said that the conference’s task is to issue a new resolution for the continued completion of the socialist-oriented market economy mechanism to 2020 with a vision to 2030 on the basis of the 12th Party Congress’ Resolution and the Resolution of the sixth plenum of the 10th Party Central Committee.

He asked the Party Central Committee to analyze weaknesses in the work and map out resolutions.

On the issue of state-owned enterprise efficiency, he said the Party and State have often discussed and issued various policies to re-organize, reform and develop state-owned enterprises (SOEs), reaping welcome outcomes, noting that the number of firms wholly owned by the State dropped from over 12,000 to 5,655 in 2001 and 718 in October 2016.

However, SOEs have neither proved the core of the state economy nor led and created growth momentum. Most SOEs’ business performance remains low and is not commensurate with the resources the State has poured into them. A number of SOEs suffered losses, experienced corruption and wastefulness, or invested in multi-trillion-VND but idle projects, worsening bad debt and public debt.

General Secretary Trong asked members of the Party Central Committee to point out the reason for the sluggish improvement of these long-standing issues.

He stressed that at this session, they need to pinpoint targets, viewpoints and solutions to address this issue. They should reach a consensus on the role of SOEs amid the equalization and divestment of state capital at businesses completely owned by the State.

They also need to look into ways to reform the firms’ apparatus and operations, as well as personnel work and the activities of Party organizations at SOEs.

He asked them to scrutinize the need to issue a new resolution from the Party Central Committee on SOE restructuring, reform and improvement.

Over the past 15 years of implementing the Resolution on renovating mechanisms, policies and facilitating the private economy adopted by the fifth plenum of the ninth National Party Congress, the Party and State have issued a number of policies, guidelines and measures to encourage the development of the private economy. 

The private economy has made greater contributions to rallying social resources for manufacturing and trading, economic growth and restructuring, increasing State budget collection, creating jobs, improving local well-being, ensuring social welfare and settling social issues. Its contribution to gross domestic product is stable at nearly 39-40 percent. Entrepreneurship has grown, as has the start-up movement. 

However, the private economy’s growth rate has fallen in recent years due to limited capacity, mostly in individual and household businesses. Various private firms operate unstably and face losses, dissolution and bankruptcy. Law violations, trade fraud, tax avoidance and debt, unhealthy competition, environment pollution, and food hygiene remain serious issues. 

The Party chief asked the Party Central Committee to assess past achievements and thoroughly analyze shortcomings and weaknesses. 

Following the Resolution set by the 12th National Party Congress and the country’s situation, the Party Central Committee needs to reach consensus with the Party and people on the goals, major tasks and measures to develop a strong private economy, making it a driver of the country’s socialism-oriented market economy, he said. 

Regarding self-criticism, the Party chief said that in March 2017, the Political Bureau and the Secretariat spent seven days conducting self-criticism on their leadership and steering work in 2016 as well as on the implementation of the Resolution on Party building and rectification adopted by the fourth Party Central Committee (12th tenure).

The work has been carried out in a democratic, frank, and sincere manner and those who were criticized listened seriously, seeing it as a chance to learn, he said.

Each Politburo and Secretariat member reviewed his or her responsibility for fields they were in charge of and acknowledged weaknesses or limitations they should fix, according to the Party leader.

Through the work, the Political Bureau and the Secretariat agreed that in 2016 the regional and international situation faced complicated developments while the country dealt with new incidents, like marine environmental pollution in the central coastal area, severe droughts in the south central and the Central Highlands, and saltwater intrusion in the Mekong delta.

In this context, the Political Bureau and the Secretariat stood united and promptly issued appropriate solutions to lead the Party, people and army to reap important achievements, which have been lauded by the people, party members and officials, he noted.

The achievements gained in 2016 were encouraging, paving the way for the country to enter a new development phase, Trong said.

He asked the Party Central Committee to correctly assess strong and weak points in the leadership and steering work of the Political Bureau and the Secretariat and the implementation of the Resolution on Party building and rectification adopted by the fourth Party Central Committee (12th tenure). It should point out causes and lessons learnt as well as devise solutions to address weaknesses.–(VNA/VLLF)
 

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