Commoditization of the Electricity Industry and Commercialization of Electricity Production and Supply in Power Companies.

i , The requirement to increase productivity, increase efficiency in production - electricity supply, therefore, increase competitiveness, forming a strong economic life for

Electricity as a key productive force, a technical basis

characteristics of the modern development process, on the basis of the market economy and the integration process. It can be said that the marketization and commercialization of the electricity industry also means the process of diversifying business entities of the electricity industry.

ii , Diversifying business entities, the fundamental feature of which is to transform state-owned enterprises into private enterprises, not only marketize and commercialize the electricity industry, but also is a way to increase economic resources for the electricity industry to develop, while at the same time placing electricity production closer to and integrating into the modern development process of the global economy. Of course, if the State controls the electricity industry and directly trades in electricity, it will have to face the problem of investment capital:

a , We know that investment capital in the electricity industry is very large and increases at a fairly rapid rate in relation to the economic boom. If only with State budget capital, then while focusing on investment in the electricity industry, investment in other areas will have to be reduced. To have investment capital for the electricity industry, the State must go through

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Borrowing, borrowing from the people and borrowing from abroad. In relation to the centrally planned economic model, bureaucracy and production and supply of electricity at any price, borrowing, especially borrowing from abroad, contains the risk of debt.

Of course, along with the spiral of needing investment capital for electricity but inefficient production, requiring more additional capital, will create a spiral of increasingly accumulating debt. It can be said that low efficiency and accumulating debt are an inherent economic risk that forms the worst obstacle to the development of the industry.

Electricity. This implies that eliminating the state role in electricity production and supply, diversifying electricity business entities, and privatizing the electricity industry is the best way to solve the inefficiency and debt spiral.

b , In the context of the global economy being established, integration into the global economy is essentially integration into the global production-service network and integration into the global modern development process. In this context, the economy

The economy is reproduced on the global production-service network and with the process of modern global development. Here , the economies not only penetrate each other through the trade channel, but basically through the investment channel. Through the investment channel, especially foreign direct investment (FDI) in the economies, foreign direct business entities will appear and bring into the economy two decisive factors: capital and modern production methods. Of course, these two factors bring obvious consequences such as growth and increased total factor productivity (FTP) and promote

export orientation of the economy. Of course, the appearance of foreign direct business entities while promoting the process of change in production methods and restructuring the economy, it also creates competitive pressure on domestic business entities.

From the perspective of the market economy, competitive pressure is not a risk but an opportunity, because the essence of competition here is competition between production methods, between development levels and on the basis of parity or equality of the market mechanism. This competition requires enterprises to adapt and meet the requirements of the market economy mechanism and laws. To adapt and meet the requirements of the market economy mechanism and laws, enterprises, on the one hand, must be cells of the market economy system, that is, they must be structured according to the principles of the market economy, and on the other hand, thanks to that, they become capable of self-regulation, dynamism and constant innovation to adapt to the requirements of the market economy. Here , competitive pressure is not a challenge that creates obstacles, but an internal motivation for businesses to be placed in a process of continuous innovation in production methods and economic structures, thereby continuously increasing productivity and efficiency. It can be said that in a market economy there is no place for conservative, stagnant, outdated, and backward businesses. Outdated and backward means self-destruction.

elimination. Enterprises that do not innovate, adapt, and are not suitable will certainly be eliminated from the business system. In a certain sense, competition and elimination of the market mechanism are inevitable methods of development. Through

competition, elimination, the body of the economy is always made up of cells, businesses with strong production capacity.

Thus, the emergence of foreign direct investment business entities will strongly and quickly promote the formation of new production methods with the emergence of enterprises that are adaptive and suitable to the market economy system.

At the same time, it will also strongly and decisively eliminate outdated, backward, unsuitable and unsuitable enterprises with the market economic process. What is lost is what is no longer suitable, outdated, unproductive, ineffective, that is what is worth losing in economic activities and that loss takes place under the impact and objective regulations of the laws of the market economy, and is an inevitable part of the law of development.

Thus, in the context, on the one hand, the economy is moving strongly to a new development stage, a stage of deep and strong integration into the current development process.

The global economy, at the same time, non-state economic forces, including the economy with foreign investment capital, have become stronger and are capable of participating in the process of electricity production and supply, so the investment of non-state economic forces in the electricity industry and electricity trading has become inevitable. In fact, in recent years, this process has taken place and the non-state economy has traded in electricity, accounting for over 20% of the country's total electricity output. On the other hand, along with the process of strongly transforming the economy into a developed economy, the State's function of managing development has increased and has become increasingly decisive. It can be said that the efficiency, stability and fairness of the economy increasingly depend on the State's capacity to manage development.

This means that the division of roles in the play of economic development becomes increasingly clear, and the law of specialization and professionalism of functions in the components of the structure of economic development begins to take effect.

increasingly strong

Adapting to the laws of development, in current conditions, the State needs to be consistent in the modern and integrated market economy system, and at the same time begin to

gradually withdraw from business functions, abandon the position of producer, on the basis of

That is, focusing on the public economic function and the function of managing development. Only then can the State become the pillar and decisive driving force, and even more so, the leader of development. If it only revolves around the business function, oppressing and hindering the non-state business force, while lacking the professional capacity of development managers and providers of public goods and services, then no matter how great the roles and responsibilities are assigned to the State,

However, in reality, if the State does not fulfill its proper functions in the development structure, it will become an obstacle to development.

Second , equitization of state-owned enterprises, in this case the equitization of the Electricity Corporation.

The analysis in Chapter II shows that the establishment of Vietnam Electricity Corporation is part of the goal of marketizing State-owned enterprises in the electricity industry, thereby forming a strong State economic force in the electricity industry, which is capable of producing and supplying electricity to the economy. However, in the form of a State-owned enterprise and maintaining a centralized, bureaucratic planned economic system, Vietnam Electricity Corporation is not really an enterprise of the market economy and its electricity production and supply activities have not been

true to the format of a business activity of a market economy. Therefore,

To eliminate the State in the production and supply of electricity and to transfer the production and supply of electricity to the business activities of the market economy, it is necessary to diversify the business entities, and at the same time, the State-owned enterprises under the Electricity Corporation themselves also change the structure of the entities and change the method of economic operation. Equitization is of course a necessary solution. Equitization is the process of converting an enterprise from a single owner to a multi-owner enterprise, thus it is a form of the process of establishing a joint-stock economy.

Equitization of state-owned enterprises, in this case Vietnam Electricity Corporation, has the following highlights:

i , If the State is a common economic owner in the State economy, then State enterprises in different forms, but the economic subject, or owner is still only one, which is the State. Therefore, in the case of a company established by shareholders who are different State enterprises, then in terms of form, although each State enterprise has legal status, therefore is an independent and autonomous enterprise in the market, in terms of ownership, they are all owned by the State, and the common economic subject is still the State. It can also be said differently, the sum of State enterprises in a Corporation, or a joint stock company, its total remains unchanged - that is a State enterprise. Here , the company is established but the joint stock economy has not really been established. Therefore, equitization as a solution to resolve the State's nature in business and marketize the economic activities of production

- electricity supply, or commercialization of electricity production and supply activities, then equitization means privatization, or gradual transformation into a joint stock company in which shareholders are private economic entities that will be an essential, core part.

ii , Equitization is a form, and at the same time, a necessary step to de-state the electricity business. In other words, de-state the electricity business is not an immediate task. Above, we have seen that the formation of non-state economic forces capable of controlling and operating the electricity business is a process. Therefore, in the process of birth and development of non-state economic forces capable of controlling and operating the electricity business, the State of course still needs to participate in the electricity business, but to reduce the state nature in the electricity business and gradually place the production and supply of electricity on the market.

In the electricity business process according to the market mechanism, the mixed joint stock company is suitable in the combination between the State and the private sector in the electricity business. It can be said that, basically, the mixed joint stock company with two State and private entities is a flexible and effective way to transfer business functions from the State to the private sector. It avoids unnecessary losses in the transfer process.

iii , Equitization of state-owned enterprises in the production and supply sector

Electricity is related to the transfer of business functions to marketize and commercialize electricity production and supply, which is a way to strengthen the decisive role of the State in economic development and increase the productivity and efficiency of the electricity sector in particular and the economy in general. This means that, on the one hand, equitization must be carried out soon in a substantial and thorough manner, and on the other hand, the transfer of functions must be carried out, in which the State gradually withdraws from business functions and strengthens management, administration, and development leadership functions.

3.2.2.2. Commoditization of the electricity industry and commercialization of electricity production and supply in power companies .

This is a decisive content in the entire process of continuing economic innovation in the electricity industry. The foundation for electricity to become a real commodity and economic activities in electricity production and supply to take the form of business requires the market economy to be established and govern all activities of the economy. This is a necessary condition, but not sufficient. Sufficient conditions for marketization and businessization of the electricity industry include the following contents:

Firstly , on the basis of equitization, the Electricity Corporation is no longer a state-owned enterprise but an enterprise with multiple ownerships or of many different economic entities. In this condition, the operation of the Vietnam Electricity Corporation is in accordance with the law on enterprises and is governed by the market mechanism. Now, the business activities of the Corporation will be separated from the capital subsidy relationship and the economic dependence relationships of the nature of granting and receiving. This means that the Corporation, like other enterprises of the market economy, is responsible for all business activities in the company. This essentially determines the autonomy of the Corporation as an independent economic entity and it is autonomous in business activities.

Second , the basis of the entire business autonomy of the Corporation is that the company's business activities are based on the market mechanism. Here , the market mechanism implies: i , Electricity is a commodity and the price of electricity is determined by the market.

The market decides ; ii , The business activities of the electricity company take place in the competition of the market mechanism. Competition in the market is the process by which the Corporation decides how to invest, organize the business process with what production method and how to react to the market to reduce costs, increase product and service quality and increase profits. Here , the market mechanism is what decides what to produce, how to produce and for whom. Of course, once prices and all business activities take place on the basis of market mechanisms, the Electricity Corporation will not only be freed from the old administrative, subsidized, and command relationships, and its business activities will become dynamic on the basis of frequent changes in production methods, in structures that are adaptive and suitable to the requirements of the market economy, thus, its productivity and efficiency will be high, and its electricity prices will decrease, but it will also be freed from social pressure that the Electricity Corporation frequently changes prices in an imposing and highly monopolistic manner, while in fact, electricity prices are low compared to production costs.

Thus, equitization is a way to make electricity enterprises adapt and be suitable for the market economy, but the key is to change the production and supply of electricity to a business method according to market principles. If we only stop at changing the form of the enterprise, it is very likely to fall into the state of "old wine in new bottles", the shell is a company but the economic content is the production and supply of electricity according to the subsidy relationship, so electricity as a core production force still does not have a strong self-increasing economic life.

Third , business in modern conditions must be carried out, or rather must be carried out according to a complete accounting system: a , Calculate the full cost of resources. For example, hydroelectric plants or infrastructure works such as power lines, transformer stations, etc., land used to make water tanks, dams and houses, the value of water as a means of production in power generation must have a price and must be included in production costs. The form of production costs, in the process of reproduction, forms a reinvestment fund for development. b , Environmental losses must be

valuation, discounted into the newly created value in relation to the formation

environmental protection fund. This comprehensive accounting system has two effects, one

On the one hand, it forms a fund for redistribution and environmental protection, and on the other hand, it creates pressure for businesses to take into account the rational use, saving of resources and good environmental protection.

Fourth , switching to a market-based business mechanism is fundamentally different from electricity production and supply in a subsidized economy in that labor is a commodity.

Nowadays, business not only reacts to the capital market, the market for means of production, the market for ordinary goods, but also reacts to the market for goods of labor. Now, the labor market is what determines the price of labor.

and decide to attract labor from the market and push labor from the production and business process to the market. In turn, this decides: i , Business of enterprises is governed by the labor market. For business to be effective, a decisive factor is the appropriate and adaptive response to the labor market. In other words, the business efficiency of enterprises is on the one hand decided reasonably by attracting and dismissing labor, on the other hand, under the pressure of the labor market, forcing enterprises to use labor reasonably and economically, and at the same time constantly change in production methods, that is, in techniques, production technology and scientific organization of labor. ii , Labor institutions need to be established to adapt to the labor market so that enterprises can use labor reasonably and economically, while protecting the interests of workers. Here , we have two observations: a , Business, on the one hand, requires solving the rigid state employee labor regime, on the other hand, forms the basis for enterprises to conduct business according to market principles. b , Labor is a basic content of the production process.

– electricity supply, but in the subsidy mechanism of the centralized, bureaucratic planned economic system, labor is formally separated from the economic life of electricity production and supply and is administratively decided outside the production and business process. But on the basis of the market mechanism, attracting labor

Labor mobilization and dismissal according to market mechanisms and the requirement to improve business efficiency have made labor use an internal economic factor.

of the business process. It can be said that the enterprise autonomously decides the issue

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