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Private sector – an important driving force of VN economy



The private economic sector’s strong development to become an “important driving force” of the Vietnamese economy and other economic achievements have the contribution of the Central Economic Committee.

According to the Vietnamese Enterprise White Paper 2020, by the end of 2018, non-state enterprises attracted VND22.25 millions of billion dong in capital, accounting for 57.2% of the capital of the entire enterprise sector, while the state-owned enterprises lured VND9.65 millions of billion dong, accounting for 24.8% of the total capital.

The non-state business sector in 2018 had the highest total net revenue with VND13.41 millions of billion dong, accounting for 56.7% of net revenue of the entire business sector. Both figures are significantly higher than those of the state-owned enterprises with VND3.41 millions of billion dong , accounting for 14.4%.

The non-state business sector is the only sector that generates an increase in pre-tax profit compared to 2017 with VND323.64 trillion, accounting for 36.1% of the profit of the entire business sector. These indicators are much higher than those of the state-owned enterprises, which was VND190.36 trillion, accounting for 21.3%.

Through many ups and downs, the private sector has been recognized as an “important driving force for economic development”. This sector currently accounts for 42% of GDP and this figure is expected to reach about 50% of GDP in 2020, about 55% of GDP in 2025, about 60 – 65% of GDP by 2030.

These are the targets set by Resolution No. 10-NQ/TW dated June 3, 2017 on “The development of the private economy to become an important driving force of the socialist-oriented market economy” – the resolution that is considered a Central Economic Committee’s landmark for the development of the private economic sector.

At the 70th anniversary of the establishment of the Central Economic Committee on September 30, Mr. Nguyen Van Binh, Head of the Committee said that the Party General Secretary and President Nguyen Phu Trong directly decided to choose the number 10 for the Resolution, with the expectation that the entire Party, the entire people and the entire army will strive to bring this resolution to life, creating a strong breakthrough as the previous Resolution 10 dated April 15, 1988 on renovation of agricultural management.

Imprints of renovation

Từ Khoán 10 đến Nghị quyết 10

Seventy years ago, on September 30, 1950, the 1st Party Standing Committee issued Resolution No. 57-QN/TW on the establishment of the Central Economic Committee, which is responsible for researching, advising and proposing guidelines, policies, and major projects of the Party on economics and finance to help the central government’s leadership in economy and finance.

Since then, the Central Economic Committee has made clear impression in the ups and downs of history. The committee gave advice for the issuance of Directive No. 100-CT/TW dated January 13, 1981 on improving the work of product contracting to groups of workers and workers in agricultural cooperatives. This was considered a major breakthrough and unprecedented thinking in the system of socialist countries at that time.

Later, the Central Economic Committee proactively proposed to the Politburo to issue Resolution No. 10-NQ/TW on the innovation of agricultural economic management in 1988. This is the result of the proactive research process and innovation, an important milestone for the Party’s renovation of the socio-economic development path. This resolution is always mentioned by the people with sincere feelings with the name “Contract 10”.

Từ Khoán 10 đến Nghị quyết 10

Mr. Nguyen Van Binh, a Politburo member, Secretary of the Party Central Committee, Head of the Central Economic Committee.

At the 6th National Party Congress, the Party initiated the cause of economic reform, production development, the contracting policy in agriculture, abolishing the regime of subsidies, promoting freedom of circulation and regulation of food supply and demand nationwide, initially forming a multi-component commodity economy, operating under the State-controlled market mechanism.

Innovation is a difficult process, a revolution in thinking and action. One of the most important requirements in the Party’s economic leadership is to reform to suit the practical situation of each revolutionary period, especially in the economic field.

The period of market turbulence

Former Head of the Central Economic Committee Vu Oanh said that he had a deep memory when he was directly assigned to participate in researching, advising the Party Central Committee to reform economic management mechanism in agriculture, with the issuance of Directive No. 100 on “Contracting in agricultural products” of the Party Secretariat and then the issuance of Resolution No. 10 of the Politburo as the outcome.

“This is a process of extremely arduous and fierce struggle between stagnant conservative thought with innovative thinking; on the way to success, there were many obstacles. Perhaps this was the hardest, most arduous task in my life,” he said.

Economist Tran Duc Nguyen said that at that time, there were very old-fashioned views like the state had to manage everything, but the situation was very dangerous and the only way was to go from the reality of life.

Prof. Ta Ngoc Tan said that at that time it was the popular viewpoint that socialism had only one method, only one ownership component – public ownership, and private ownership associated with the production of goods was not accepted.

Từ Khoán 10 đến Nghị quyết 10

The 6th Party Congress opened the renovation cause, arousing and promoting the potential strength of the country. Photo: VNA

The form of product contract immediately promoted efficiency and helped people to develop production. That fact convinced the opposing view at that time. Directive 100 was quickly drawn up and approved by the Secretariat on November 13, 1981.

In 1986, the market was chaotic after 2 wage reforms: inflation exceeded 700%, raw materials were exhausted while the annual increase in contract continued to weigh on farmers again, forcing them to leave the fields. The economy continued to fall into crisis, the centralized mechanism related to subsidies was still applied in cooperatives, where cooperative members produced rice but the rice was distributed by their cooperative.

Therefore, it can be said that Directive 100 and Resolution 10 contributed to abolishing the mechanism of centralization, bureaucracy and subsidies to implement a new one, opening up a new chance for agricultural production. The Party’s new economic policy is the premise for creating confidence and driving force for the process of successful renewal of the country’s socio-economic management mechanism later.

Documents of the 6th National Party Congress with important changes like the acceptance of the existence of non-state and collective economic sectors, and the change of the management mechanism from a centralized bureaucracy to the economy based on monetary goods relations.

In 1991, the collapse of the Soviet Union that was the peak in the chain of consecutive collapses of Eastern European socialist countries put Vietnam in a difficult situation with risks of socio-economic instability. The 7th Party Congress held in June adopted a strategy to stabilize and develop the socio-economic development up to 2000 with drastic economic promotion measures. From 1991 to 2000, the gross domestic product increased continuously over the years with an average annual growth rate of 7.56% when the management and operation became consistent with the market management; hyperinflation was pushed back.

Từ Khoán 10 đến Nghị quyết 10

Directive 100 and Resolution 10 helped make breakthroughs in abolishing centralization, bureaucracy and subsidy mechanism to implement a new mechanism, opening a new situation for agricultural production. Photo: VNA

Continuous renovation is required

Mr. Nguyen Van Binh affirmed that the practical and effective contributions of the Central Economic Committee in the past have created a solid foundation for the Central Party Committee, the Politburo, and the Secretariat to re-establish the Central Economic Committee on December 28, 2012.

During the 12th term of the Party Congress, many socio-economic policies have played a fundamental role for the long-term development of the country until 2030, with a vision to 2045, such as the resolutions on: perfecting the socialist-oriented market economic institution; developing the private economic sector; reforming and restructuring state-owned enterprises; land policy; national energy development strategy; development of agriculture, farmers and rural areas; proactively responding to climate change, enhancing natural resource management and environmental protection …

However, the coming stage of economic development requires comprehensive and synchronous promotion of innovation and deep international integration. Besides opportunities and advantages, there are also many challenges and difficulties.

That situation poses a higher requirement and a heavier task for the Central Economic Committee in researching, advising, proposing to build, institutionalize, and implement the policy of the Party on socio-economic development.

The Party Secretariat’s standing member Tran Quoc Vuong said that the world and domestic situation is experiencing many developments beyond normal forecasts, in which the economic field is the fastest and most profound changing sector. Without constant innovation, it is impossible to keep up with that change of situation.

Therefore, the Central Economic Committee needs to proactively and constantly innovate thinking, boldly discover and propose new issues, on the basis of maintaining principles, ideological consistency, national independence and socialism. To better carry out socio-economic research and forecasts, closely monitor the world situation, the country’s reality to further improve the quality of advisory and evaluation to the Party Central Committee, the Politburo and the Secretariat on major and strategic issues in socio-economic development.

“The Central Economic Committee must really be one of the Party and State’s centers on intellectual gathering, cooperation with domestic and foreign experts to contribute to the renovation and socio-economic development of our country,” Mr. Vuong said.

Lan Anh



TTC Sugar to issue $30 million of unsecured bonds



TTC Sugar will sell VNĐ700 billion (US$ 3 million) of unsecured bonds to the public next quarter. — Photo courtesy of the firm

HÀ NÔI — TTC Sugar has announced it will offer VNĐ700 billion (US$30 million) worth of unsecured bonds up for public auction.

The firm said the interest rate of the bonds in the first year would be 10 per cent in the first four quarters then a floating interest rate after that.

The firm expects to release the bonds in the first quarter next year with the minimum order for individual investors VNĐ20 billion and institutional investors VNĐ250 billion.

It said the non-convertible bonds were not guaranteed by assets in the maximum term of three years and were issued to pay for sugar purchase contracts in the first quarter of 2021

Sugar purchase contracts included those with Thành Thành Công Gia Lai company worth VNĐ288.4 billion, Biên Hòa – Ninh Hòa Sugar Company worth VNĐ205.8 billion and Biên Hòa Đồng Nai TTC Sugar Company worth VNĐ205.8 billion.

As of September 30, TTC Sugar had total capital of more than VNĐ18.4 trillion, total financial debt of VNĐ8.6 trillion, in which bond loans reached nearly VNĐ1.3 trillion. In addition, the firm has nearly VNĐ153 billion of convertible bonds.

The shares of TTC Sugar with the sticker SBT gained 2.5 per cent to reach VNDD18,500 on the HCM City Stock Exchange (HoSE) yesterday —


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VN-Index back in the green after single red session



VN-Index back in the green after single red session

An investor looks at stock prices on a screen at a brokerage in Ho Chi Minh City. Photo by VnExpress/Quynh Tran.

The VN-Index shrugged off a single-session loss, gaining 0.58 percent to close at 1,008.87 points Tuesday, with gains driven by large cap stocks

The Ho Chi Minh Stock Exchange (HoSE), on which the VN-Index is based, saw a fairly balanced session with 221 stocks gaining and 199 losing. Out of these, 15 stocks hit their ceiling prices, the highest they could go in a trading session.

Total trading volume rose marginally over the previous session, to VND11.68 trillion ($504.2 million), of which half went towards the VN30, a basket of the market’s largest capped stocks.

The VN30-Index for this basket surged 1.08 percent, significantly outperforming the general market, with 18 gaining tickers and seven losing.

Topping gains were stocks in the private banking sector. STB of Sacombank soared 5.5 percent, VPB of VPBank 4.1 percent, TCB of Techcombank 1.7 perent, HDB of HDBank 1.4 percent, while EIB of Eximbank shed 0.3 percent.

Results in the public banking sector, however, were mixed. MBB of mid-sized Military Bank rose 2.5 percent, while of Vietnam’s three biggest lenders by assets, CTG of VietinBank was up 1.2 percent, BID of BIDV kept its opening price, while VCB of Vietcombank was the worst performer on the VN30, down 1.1 percent.

Other major gainers this session included TCH of truck dealer Hoang Huy Group, up 5.4 percent, SBT of agricultural exporter TTC-Sugar, up 2.5 percent, VNM of dairy giant Vinamilk, with 1.4 percent, and MSN of food conglomerate Masan Group, with 1.2 percent.

VIC of private conglomerate Vingroup, HoSE’s biggest cap, rose 1.1 percent, while VHM of its real estate arm Vinhomes was up 0.8 percent, and VRE of retail arm Vincom Retail added 0.2 percent.

In oil and gas, GAS of energy giant PetroVietnam Gas and POW of electricity generator PetroVietnam Power both kept their opening prices, while PLX of gasoline distributor Petrolimex shed 0.4 percent.

In the other direction, the biggest losers included ROS of construction firm FLC Faros, down 0.9 percent, KDH of real estate developer Khang Dien House, down 0.7 percent, and FPT of IT services firm FPT, with 0.4 percent.

The HNX-Index for the Hanoi Stock Exchange, home to mid- and small-caps, climbed 0.83 percent, but the UPCoM-Index for the Unlisted Companies Market jumped 1.36 percent.

Foreign investors continued to be net buyers to the tune of nearly VND420 billion on all three bourses, with buying pressure mostly on VNM of Vinamilk, and the FUEVFVND, an exchange-traded fund replicating the performance of stocks on the VN Diamond Index, a bag of 14 stocks, most of which are blue chips.


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Golden Brand Awards launched in HCMC



The launch ceremony of the HCMC Golden Brand Awards held at the headquarters of The Saigon Times Group on December 1 – PHOTO: THANH HOA

HCMC – The HCMC Department of Industry and Trade and The Saigon Times Group jointly launched the HCMC Golden Brand Awards this morning, December 1, aimed at honoring businesses in the city for their efforts in building their brands.

Addressing the launch ceremony, Bui Ta Hoang Vu, director of the HCMC Department of Industry and Trade, said HCMC is the country’s economic hub where many businesses have been established and running.

The HCMC Golden Brand Awards is expected to help raise the awareness of businesses operating in the city over the importance of building their brands and encourage them to accelerate innovation, creativity and development, thus helping them improve their competitive capacity in local and international markets.

The organizers will give priority to businesses active in four key industries and nine major services of the city. Selection will be based on their efficiency in building their brands, innovation, creativity, the quality and safety of their products and their corporate social responsibility.

“The success of an enterprise relies not only on the popularity of its brand but also on its efficient business model. The assessment over the health of a brand is no longer based mainly on communication or marketing strategies but on the brand platform, which is the foundation that helps businesses develop sustainably and maintain their competitiveness in the long term,” said Tran Minh Hung, editor-in-chief of The Saigon Times Group.

According to Nguyen Dong Phuong, deputy director of the HCMC Department of Industry and Trade, businesses eligible for the awards are those that comply with all the prevailing regulations on production and trade. They must be based in HCMC and must not commit copyright infringement or trade fraud. Their brand should have been developed for at least two years.

The jury will comprise experts in building brands. The award winners will be announced in January 2021.

Registrations can be submitted to The Saigon Times Group, 35 Nam Ky Khoi Nghia Street, Nguyen Thai Binh Ward, District 1, HCMC, or the HCMC Department of Industry and Trade, 136 Hai Ba Trung Street, Ward 6, District 3, HCMC.

The registration form can be downloaded from


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