Party Central Committee issues three resolutions on economy
The fifth plenum of the Party Central Committee of the 12th tenure closed in Hanoi on May 10, fulfilling all the set objectives after six days of working.

The fifth plenum of the Party Central Committee of the 12th tenure closed in Hanoi on May 10, fulfilling all the set objectives after six days of working.

At this meeting, the Party Central Committee approved a number of resolutions and conclusions, especially three resolutions on “completing the socialist-oriented market economy institution”, “continuing to reorganize, 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 basic theoretical and practical issue in the country’s economic development policy, a new creation of the Party on the general economic model in the transitional period to socialism in Vietnam.

The closing ceremony of the fifth plenary meeting of the Party Central Committee (12th tenure)__Photo: VNA

The socialist-oriented market economy that Vietnam is building is an economy operating fully and synchronously in line with the rules of the market economy while ensuring socialist orientations suitable to each development stage of the country.

It is a modern and internationally integrated economy put under the management of the socialist law-ruled state led by the Party, for the goal of “prosperous people, strong country, and democratic, equitable and civilized society”.

In his closing speech, Party General Secretary Nguyen Phu Trong stated that building and completing the socialist-oriented market economy institution is a strategic task and an important breakthrough, creating a momentum for the rapid and sustainable socio-economic development.

The economy institution perfection must be coupled with renovating and completing the organization and personnel apparatus of the whole political system; clearly defining and seriously performing the position, role, functions and relations between the State, the market and the society in conformity with the market economy; ensuring socialist orientations; and maintaining and enhancing the leadership role of the Party.

The Party chief stressed that during the implementation of the Resolutions of this meeting, the entire political system needs to continue reaching consensus on the socialist-oriented market economy while paying attention to leading and instructing the synchronous and drastic implementation of the set tasks and measures.

“In this tenure, we have to focus on performing well five focal tasks, including completing the institution on mobilizing, allocating and effectively use resources and the institution on distributing outcomes to liberate production force, create momentums and resources for growth and development, ensuring social progress and equality, national security and defence,” he noted.

It is necessary to complete the institution on improving the business and investment climate, with breakthrough policies to remove difficulties for businesses and facilitate their development on the basis of stepping up administrative and judicial reforms synchronously, 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 renovating the role and functions, and improving the management efficiency and effectiveness of the economy and the State’s capacity to create development, especially the ability to institutionalize the Party’s guidelines and organize the implementation of State policies and laws.

“We must renew the leadership methods of the Party, perfect the institution on controlling power, streamlining the personnel apparatus, building a contingent of capable and virtuous cadres who meet requirements and tasks; and improve the quality and efficiency of the operation of the entire political system,” he said.

The committee agreed that despite shortcomings and weakness need fixing, state-owned enterprises (SOE) have showed efforts to improve production and business by renovating themselves, which has showed fruitful outcomes.

Along with policies and mechanisms, SOE is an important tool for the State to ensure the effective implementation of macro-economic policies and settlement of market fluctuations and the controlling of inflation.

The SOEs have also largely contributed to the socio-economic infrastructure construction and development, helping transform the economy, while serving as a great income source to the state budget and helping fulfill defence-security tasks and ensure social welfare.

Party General Secretary Trong clarified that in the future, it is crucial to continue paying due attention to leading and directing the restructuring and renovation of SOEs, thus enhancing their effectiveness and promoting their key role in state-owned economic sector.

At the same time, it is necessary to strictly implement orientations, policies and new breakthroughs recently adopted by the Party Central Committee, he said.

He highlighted the need of shifting the majority of SEOs into those with combined ownership structure, mostly joint stock companies, and posting their shares to the stock market to optimize economic effectiveness.

The Party leader also urged thorough handling of ineffective and loss-causing groups, corporations, enterprises and projects, even by announcing their dissolving and bankruptcy.

Meanwhile, the restructuring and renovation of SOEs must meet international standards on business governance, thus driving them to 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 the continued reforming of SOEs to improve their management efficiency as well as close monitoring over their operations, preventing losses and wastefulness of state capital and property.

He underscored clarifying the state functions of managing all business forms in general enterprises and state capital contribution to businesses, adding that it is necessary to promptly complete the model of managing, monitoring firms and state capital. By 2018, a specialized agency will be formed to represent state ownership in SOEs, joint stock companies and state capital, he said.

The Party leader also request effective measures to prevent the forming of “interest group” and “backyard” controlling operations of SEOs for private benefits and corruption, causing losses to the State and enterprises, he said.

Over the past 30 years of doi moi (renewal), the private economic sector has played an important driving force for the development of the socialist-oriented market economy in Vietnam. The private sector accounts for 39-40 percent in the GDP, with the formation of several major private economic groups and the increasing number of entrepreneurs.

In the coming time, the entire political system must spare no effort to promote attainments and surmount shortcomings while implementing policies developed at the meeting, the committee requested.

The Committee stressed the need to continue renewing thinking and raising awareness of the private economic development, considering it a necessary requirement during the development process of the socialist-oriented market economy.

The Committee asked to pay heed to developing the private economy in a fast, healthy and more appropriate manner so as to become an important momentum for production and socio-economic development, along with the state economy and collective economy to ensure the successful building of an economy of independence, self-reliance and international integration.

Besides, the Committee underlined facilitating the private economic sector’s development in all areas and promoting the development of all connectivity forms of production, business, and goods and service provision in the production network and market value chain between the private economy and state economy, collective economy and foreign-invested businesses to receive and transfer advanced technology and modern governance.

It is necessary to improve performances of small- and medium-sized enterprises, renovation businesses and startup movements, facilitate households and individuals’ voluntary connection to form firms or other cooperation forms as well as encourage individuals to jointly make financial contributions to set up private economic groups as well as to state economic groups, capable of joining regional and global production network and value chain, the cCommittee stressed.

The Party chief emphasized that the State and the contingent of 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 active and 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, research and application of science and technology.

He stressed the strict observation of law, especially legal regulations on corporate social responsibility, protection of legal and legitimate rights and interests of laborers, environmental and natural resources protection, and ensuring food hygiene and safety.

The Committee asked the Political Bureau and the Secretariat to take more comprehensive and drastic leadership, and show stronger resolve in order to fulfill set tasks and effectively address pressing issues which are of public concern.

The move also aims to reinforce the confidence among officials, Party members, and public in the Party.

At the plenum, 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 have hurt the reputation of Party organizations, his personal reputation and caused a loss of confidence among the people and other Party members.

Closing the meeting, Party General Secretary Nguyen Phu Trong said three resolutions adopted at the meeting are significant to carry 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 the discipline against Party officials with misdeeds will likely contribute to consolidate confidence among Party officials, members and public in the Party.-(VNS/VLLF)

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