Current Status of Inspection and Examination of State-Owned Enterprise Activities in Dak Lak Province

State. Strengthen coordination between departments, branches and sectors to promptly advise on business arrangement and conversion.

To stabilize the psychology of workers in state-owned enterprises, the province has also strengthened the propaganda work on the policies of the Party and the State, mobilizing workers to participate in complying with state laws, policies on arranging and converting state-owned enterprises in the current situation. Combined with the implementation of solutions to effectively resolve the arrangement, assignment, and use of cadres; training, job conversion and handling of surplus labor. Fully ensuring the legitimate and legal rights of workers. Improving the efficiency of production and business activities of state-owned enterprises through improving state-owned enterprise governance; imposing market discipline and competition discipline on state-owned enterprises. Continuing to promote the restructuring of agricultural and forestry companies in the direction of ensuring the harmony of interests of the state, enterprises and people.

In order to effectively equitize and restructure state-owned enterprises, based on the instructions of the Central Government, the Provincial People's Council and People's Committee have issued incentive mechanisms to attract strategic investors to participate in purchasing shares and divesting state capital, perfecting the criteria for major shareholders and strategic shareholders with sufficient financial, technological and management capacity to restructure and develop enterprises, and at the same time eliminating investors with weak financial and management capacity from contributing capital in the process of restructuring and renovating state-owned enterprises.

2.2.5. Current status of inspection and examination of state-owned enterprise activities in Dak Lak province

The provincial government's state management of state-owned enterprises in Dak Lak is currently carried out through many different methods, in which inspection and examination are the main and important control methods of state management agencies. In recent times, this method has brought many positive results for state-owned enterprises operating in the province.

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In the past 5 years, the province has had about 40 state-owned enterprises included in the inspection and examination plan. Basically, compared to the previous period, the number of inspections has decreased, only 82% of previous years.

The province has 42 inspection and examination units, including central agencies located in the area. The provincial inspectorate is assigned by the provincial People's Committee to preside over and coordinate with relevant agencies in inspecting and examining enterprises in general and state-owned enterprises in particular, and to carry out inspections and examinations according to plans approved by competent authorities.

During the inspection process, specialized agencies applied the software "Inspection and examination plan management system in the province". Thereby, the Inspectorate of Dak Lak province discovered that some state-owned enterprises had many units conducting duplicate inspections. From there, the Provincial Inspectorate requested inspection and examination agencies to coordinate into inspection and examination teams, reducing the burden on state-owned enterprises. Inspection and examination units updated the results of enterprise inspection and examination to the inspection and examination plan management system in the province.

In the past time, the Provincial Inspectorate has strictly implemented Directive No. 20/CT-TTg of the Prime Minister on rectifying inspection and examination activities for enterprises to overcome shortcomings in implementation, creating favorable conditions for enterprises to operate. Thereby, the Provincial Inspectorate has coordinated with the Department of Planning and Investment, the Department of Information and Communications to adjust the inspection and examination plan. At the same time, it advised the Provincial People's Committee to organize training and propaganda sessions on the implementation of Directive No. 20/CT-TTg of the Prime Minister on rectifying inspection and examination activities for enterprises. Thereby, enterprises in general and SOEs in particular in the area have been assured in production and business.

2.2.6. Current status of state management apparatus for state-owned enterprises in Dak Lak province

State management of SOEs is the authority and responsibility of the entire provincial government, including the People's Council, People's Committee, and specialized agencies of the province, under the leadership of the Party Committee of the Dak Lak Provincial Agencies and SOEs Bloc. Accordingly, the People's Council and People's Committee have issued legal documents to guide, orient, and regulate the activities of SOEs, both in terms of production and business orientation, support for production and business in difficult times, and restructuring.

restructuring the operating model of state-owned enterprises; and specialized agencies of the province manage state-owned enterprises according to each specialized field under their authority, functions and tasks. The Department of Finance monitors the production and business performance of state-owned enterprises and acts as a representative of the State capital in enterprises; the Department of Planning and Investment develops investment, bidding and appraisal plans related to investment activities of state-owned enterprises; the Departments of Labor, Agriculture, Industry, Trade, etc. monitor and regulate the activities of state-owned enterprises according to each specific specialized field, based on State regulations. In addition, state-owned enterprises in the province always receive attention and ideological leadership from the Party Committee of the State-owned Enterprises and Agencies Bloc of Dak Lak province.

It can be affirmed that, basically, the State management apparatus for State-owned enterprises in the province has promoted the leadership role of the Party, the regulatory, management and support role of State management for State-owned enterprises in the province. Continuously consolidating, building and perfecting the operations of State-owned enterprises, both bringing about production and business efficiency and being an effective material tool of the State in managing the economy, affirming the leading role of the State economy.

The State management apparatus has performed well as both a "coach" and a "referee" of SOEs in the area, directing measures and mechanisms to advise and remove difficulties for SOEs, so that enterprises can focus on socio-economic development, contributing to the overall development of the province in the 2015-2020 term.

2.3. Assessment of the current state management of state-owned enterprises in Dak Lak province

2.3.1. Achievements

Firstly, in recent years, state-owned enterprises in the province have made important contributions to the socio-economic development of the whole province, affirming their key role and being an important material force of the state economy. In the last term, state-owned enterprises operating in the fields of agriculture - forestry - fishery, industry - construction, trade, services, tourism, etc. continued to develop.

stable. In particular, the business of gasoline, oil and gas ensures quality, increasingly affirms brand reputation, contributes significantly to market stability, and contributes to the local budget. State-owned enterprises producing and distributing electricity always maintain effective operations, ensuring that 100% of communes and over 96% of rural households in the province have access to stable electricity. The growth rate of commercial electricity reaches 10%/year and electricity loss is significantly reduced. In addition, water supply enterprises in the province have also made many efforts to ensure domestic water sources for people and effectively serve production needs. The effectiveness of state management work is first of all reflected in the operating results of state-owned enterprises located in Dak Lak province. The following state-owned enterprises have made outstanding contributions to the socio-economic development of the province:

- Vietnam Rubber Industry Group (VRG) is a long-standing business unit associated with Dak Lak province, with 5 main business lines including: planting, caring and processing rubber latex; rubber industrial products; wood processing; developing industrial zones and high-tech agriculture. The average income of employees in the company is 6-10 million VND/month. The provincial government has always supported and created favorable conditions for investment, production and business, so VRG contributes to the economic development, social security and national defense of Dak Lak province.

- Another large state-owned enterprise in the province is Vietnam Electricity Group (EVN). EVN has ensured electricity supply for the entire area, reaching 1.7 billion kWh. In addition, EVN has also completed investment projects well, without any problems. 3 hydropower plants invested by EVN have been completed with guaranteed quality and on schedule. In addition, EVN continues to invest in the power grid system, transformer stations, and renewable energy projects to ensure local electricity demand.

- Next, Vietnam Coffee Corporation (Vinacafe) with 21 units located in Dak Lak, manages 18,404 hectares of natural land, with a total of 20,096 employees in the province. Vinacafe's revenue in 2019 reached 1,849 billion VND, the average salary of employees reached 4.2 million VND/month, not including the excess income of contracted employees.

- MobiFone Telecommunications Corporation and Vietnam Posts and Telecommunications Group (VNPT) are also long-standing enterprises operating in Dak Lak province and have brought high-quality telecommunications services to local people. In addition, VNPT has been supporting the Dak Lak Provincial People's Committee in applying technology in administrative management, public services, social welfare for people as well as building a smart city.

- As a fuel supplier for irrigation activities, serving agricultural production of enterprises and people, Petrolimex Nam Tay Nguyen under the Vietnam National Petroleum Group (Petrolimex) has directly contributed to the economic development and social security of Dak Lak province. Petrolimex always appreciates the management role of the provincial government, the recommendations and proposals of enterprises are listened to and supported by the Dak Lak Provincial People's Committee, thereby helping enterprises expand the network of gas stations. In addition, the People's Committee has directed the Departments and Branches in the management of the gasoline market, preventing illegal business, creating a healthy business environment.

Second, in recent times, the number of state-owned enterprises has decreased sharply along with the implementation of restructuring, equitization, and divestment of state capital in state-owned enterprises. Although accounting for only nearly 0.8% of the number of operating enterprises with production and business results, state-owned enterprises are still holding many important resources of the economy, accounting for about 25.78% of the total capital for production and business; 23.4% of the value of fixed assets and long-term financial investments of operating enterprises with production and business results; managing and exploiting most of the assets owned by the whole people such as minerals, resources, infrastructure of some key industries, etc. Third, state-owned enterprises are playing a dominant role in many important industries and fields,

key to the economy. In the telecommunications, information and communications sector, the Military Industry and Telecommunications Group (Viettel) and the Vietnam Posts and Telecommunications Group (VNPT) play a dominant role. Viettel is also an effective and reputable investor in a number of countries. In the finance and banking sector, the four major state-owned commercial banks are the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), the Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank), the

Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Vietnam Bank for Agriculture and Rural Development (Agribank) with total assets and outstanding credit accounts for over 50% of the entire banking system, play a role in ensuring timely supply of capital for economic development, supporting enterprises to expand production and business activities, and are also the pioneers in implementing the directions of the State Bank of Vietnam on interest rates and exchange rates to stabilize the monetary market and ensure the safety of the banking credit system; are tools to support market leadership and contribute to implementing the national monetary policy.

Fourth, state-owned enterprises play a major role in the production and supply of public products and services. Many economic groups and state-owned corporations directly participate in serving security.

- national defense, implementing social security policies, combining economic development with ensuring national security - defense and sovereignty. State-owned enterprises also play an important role in building and developing the infrastructure system necessary for socio-economic development, first of all, infrastructure for transportation, agriculture, rural areas, energy, and telecommunications.

At some point, many economic groups and state-owned corporations have carried out political and social tasks, serving economic regulation policies, stabilizing the macro economy, stabilizing prices, etc. Especially during the COVID-19 pandemic, despite facing many difficulties, state-owned enterprises have always been a strong tool for the Party and State to regulate and minimize negative impacts on the economic and social life in the country.

2.3.2. Some limitations and weaknesses still exist in state management of state-owned enterprises in Dak Lak province.

Despite achieving many positive results, the implementation of the State management role for SOEs in Dak Lak province still has the following limitations:

Firstly , in reality, SOEs still play an important role in the economy, implementing economic development policies, social security, hunger eradication and poverty reduction, directly holding important resources and holding a dominant position in many key sectors and fields of the economy. However, the results of implementing the leading role of the state economy, of which SOEs are the core, are unclear. In some areas

In the field, SOEs have not clearly demonstrated their prominent role in leading, motivating, paving the way, guiding, promoting the development of other components, and promoting value-added chain linkages. The role of SOEs in supporting and improving the quality of people's lives, socio-economic development, and structural transformation in areas with difficult socio-economic conditions is not prominent. The participation of SOEs in implementing social security policies and serving national security and defense has had remarkable results, but there is a lack of clarity about the goals, tasks, and the effectiveness of SOEs is not commensurate with the resources held.

Second, there are currently difficulties in implementing state capital management at state-owned enterprises in Dak Lak province, especially problems in implementing the arrangement of state-owned enterprises under provincial management; issues regarding land funds, charter capital when establishing and adjusting charter capital during the operation of equitized enterprises under central management... Currently, Dak Lak province has not reviewed all restructuring projects of state-owned enterprises as required by the State Capital Management Committee to continue adjusting and supplementing them in accordance with new requirements, linking the restructuring of state-owned enterprises with local market requirements, proactively proposing institutional improvements, removing difficulties for enterprises, such as enhancing enterprise autonomy, issues in investment and development, capital use, handling issues related to human resources, land, etc.

Third, according to current regulations, the biggest problem for SOEs today is that in a market economy, many conditions must be met, through many steps, according to the principle of taking competition as the driving force for development. However, many state-owned corporations and groups in Vietnam were formed from administrative orders with the "formula" of combining small into large. Therefore, when faced with unfavorable factors, fierce competition and difficulties, along with internal weaknesses, some units have failed. These failures are becoming a major challenge, if not an obstacle, to the restructuring process and improving the operational efficiency of current state-owned enterprises (SOEs).

Fourth, difficulties in business inspection work:

The inspection and examination of enterprises also shows many limitations and shortcomings such as: The content and scope of inspection and examination of enterprises are not clear, not suitable, not close to reality, in some places and at some times they are beyond the scope of management authority; the inspection and examination of enterprises do not ensure fairness, publicity, transparency, the inspection and examination time is still long, causing many inconveniences for enterprises; the issuance of conclusions on inspection and examination of enterprises is still slow, especially the violations of enterprises have not been clarified, and specific measures to handle violations have not been recommended; there are still manifestations of negativity and harassment in inspection and examination activities for enterprises. The above-mentioned shortcomings and limitations in inspection and examination of enterprises stem from many causes such as incorrect and incomplete awareness, many limitations in legal regulations, and many shortcomings in the implementation process. The main shortcomings in the implementation process can be mentioned as follows: The attention of leadership and direction for inspection and examination activities in general and inspection and examination of enterprises in some ministries and local branches is not close and drastic, in some places and at some times there is still a local mindset, not ready to coordinate with other relevant State agencies; the professional qualifications, sense of responsibility and public ethics of a number of civil servants, inspectors and examiners are still weak, public discipline is not strict, not ensuring fairness; the connection and sharing of information in inspection and examination activities in general, in inspection and examination of enterprises in particular is the key point in the coordination process between competent inspection and examination agencies, which has not been well implemented. The database on inspection and examination activities in general and inspection and examination of enterprises in particular is still lacking. Some solutions to innovate and improve the quality of business inspection and examination activities in the coming time

2.3.3. Causes of limitations in state management of state-owned enterprises in Dak Lak province

a) Objective reasons

- The socio-economic situation in Dak Lak province is still difficult compared to other localities in the country, greatly affecting the results of production activities.

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