Income distribution in EVN

b . Establish and perfect remuneration forms suitable to the market mechanism and characteristics of the electricity business of the Corporation.

Vietnam Electricity. c , Establishing the necessary conditions and foundations for implementing income distribution according to market principles. The necessary foundations and conditions are a system of organizational and technical factors. It is necessary

built and perfected on economic, organizational and technical-technological scientific foundations, and at the same time thoroughly understood and implemented in the Corporation.

This is the legal basis and tool for organizing, managing and administering the business process, and at the same time is the basis and tool for implementing the income distribution regime in the Corporation.

The three elements that make up the income distribution system mentioned above are closely related. Therefore, to effectively implement the distribution system according to market principles, the three elements above need to be established and developed synchronously.

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Chapter 3 Summary:

1. In the context of accelerating industrialization, modernization and deep integration into the global economy, the demand for electricity will increase dramatically. This new development context makes the electricity industry slow to innovate towards the market and integration, unable to adapt and meet the development requirements of the national economy and society. To adapt and meet the development needs of the national economy and society regarding electricity, the electricity industry needs to continue to innovate on the basis of a thorough transition to a market economy and EVN needs to be established as an enterprise of the market economy, that is, an enterprise operating under the market mechanism.

2. To marketize the electricity industry, establishing electricity as a commodity and forming a competitive electricity market becomes necessary. To establish EVN as an enterprise of the market economy, equitization of EVN becomes necessary. Equitization here is the path of commercializing EVN's economic activities according to the market mechanism. Because equitization is a way to separate the State from enterprises, separate ownership from business, thereby establishing EVN

become an independent business entity, conducting electricity business according to market mechanisms. The marketization of the electricity industry and the commercialization of electricity enterprises is the establishment of economic life, so the economic system is inevitable for

Electricity, a key productive force, a fundamental economic basis of large-scale industrial development. This is also the way to free the electricity industry from the state of constant power shortages, inefficient economic activities and in general the inability to meet the development requirements of the national economy and society in the new context.

3. Adapting to the subsidized and bureaucratic economic regime, the distribution regime in EVN in the past was basically a subsidized and bureaucratic distribution regime. Of course, this distribution regime is not suitable and appropriate for the business regime according to the market mechanism. Therefore, fundamental innovation in relations, mechanisms and regimes

The distribution level adapts to the market economy mechanism, the business regime according to the market mechanism becomes necessary. The principles, mechanisms and forms of distribution and the necessary conditions for implementing the new distribution that the thesis proposes are based on the theory and practice of distribution of the market economy in the socialist orientation.

Conclude

1 ,

* Income distribution, on the one hand, is a stage in the reproduction process, a fundamental economic relationship throughout a mode of production. It reflects the nature of the mode of production and forms the economic motivation of that mode of production. On the other hand, income distribution is a sensitive economic relationship, on which the economic interests of individuals, social groups and social classes are formed. Therefore, the income distribution relationship has a special significance for the process of economic and social development.

* In a market economy, the market mechanism is the economic mechanism that determines the basic issues of an economy: what to produce, how to produce, and for whom. Distribution is a basic economic relationship, therefore, in a market economy, the income distribution relationship takes the form of value and follows the market mechanism. In a market economy, on the one hand, the product of labor

In general, wealth as well as input factors of the production process take the form of commodities and operate in the market mechanism. On the other hand, individuals in the economic system are economic subjects, which are essentially the subjects of commodities; therefore, income distribution is essentially the economic realization of the right to own commodities, and therefore the realization of the prices of commodities. This distribution mechanism is expressed in the triune formula: Capital - Profit; Land

Land - Rent; Labor - Wages. In this formula, profit, rent and wages are the prices of the three basic factors that make up the production process of a market economy, while the businessmen, landowners and workers are the owners of the input goods that receive income, that is, the economic realization of their goods is profit, rent and wages.

* In a market economy, the product of labor takes the form of commodities and labor crystallizes in the product in the form of value, therefore, the mechanism

The market is an economic mechanism in which the value and economic form of labor are combined.

The essence of goods moves and increases constantly. This means that when the economy operates on a market economy, all economic activities are movements.

operating according to the principles of the market economy, according to the market mechanism and at the same time is the process of movement and increase of value. Therefore, distribution in the market economy is essentially distribution according to labor, but through the form of value and the market mechanism. In this process, living labor creates value, but living labor

That activity creates value in a social system, a market system, that is, in relation to other basic production factors (means of production) in the form of commodities. Of course, in that market economic system, labor creates value, but labor power is a commodity, so workers only receive wages as income, the economic form of exercising the right to own labor power. Therefore, K. Marx in "Critique of the Gotha Program" pointed out that in conditions of scarcity, that is, production power has not reached the point of making wealth flow out in abundance, therefore, the economy is still a market economy, so equal rights in distribution must still take the form of bourgeois.

* It is also necessary to realize that, in a market economy, the essence of activities

Economic activity is business, is capital investment and makes the value of that capital increase and the economy is structured by enterprises operating according to the market mechanism. This means that in a market economy, individual distribution in enterprises is according to the market mechanism. In the conditions of a modern market economy, the State has a development function, that is, the function of stability, fairness and efficiency, redistribution has a particularly decisive meaning. This new function of the State makes distribution in enterprises have a new nature. Enterprises have the basic function of business, while the function of ensuring social security, social welfare and social welfare is basically separated from enterprises and is carried out by the State. While separating the function of ensuring social security, etc. from the enterprise, the enterprise has the obligation to pay taxes, fees, and transfer funds to form a centralized source of income in the form of the State budget, so that the State can carry out common economic and social development processes, increasing general welfare.

Payment of taxes, fees and transfers is a fundamental matter related to income distribution in a business.

2 ,

The innovation to shift to a market economy and open door has fundamentally changed the economic mechanism and the path of economic development. In the process of general innovation of the economy, the innovation of the electricity industry has been slow and implemented by changing the model of "Governing Ministry" to the model of General Corporation. This innovation aims to marketize the electricity industry, commercialize the enterprises of the electricity industry in the relationship of creating strong State economic groups, while increasing the productivity and efficiency of the electricity industry. However, the form of General Corporation has innovated very little in the economy of the electricity industry. Basically, the General Corporation is a variation of the "Governing Ministry" mechanism, and is a State enterprise operating under the administrative - subsidy mechanism. In other words, the electricity industry is basically still placed within the framework of the centralized planning economic system and adapted to distribution under the administrative - subsidy mechanism. This means that the issue of innovation in distribution relations in the Corporation is not about perfecting the salary payment regime and method, as well as adjusting more or less the benefits for cadres, workers and employees in the Corporation, but about innovating all economic activities in the electricity industry and in the electricity production and supply activities in the Corporation on the basis of completely transforming the electricity industry into a market economy and transforming the Corporation into an enterprise of the market economy, that is, an enterprise operating according to the market mechanism, and on this basis, establishing a regime.

Income distribution according to market mechanism in Vietnam Electricity Corporation.

3 ,

Integration with Vietnam becoming a member of WTO and promoting the process of industrialization and modernization with high growth rate has become a decisive context for the development of the electricity industry. In this context, for the industry to

Electricity increases productivity, increases efficiency, increases competitiveness, and meets

In response to the development requirements of the economy and society, the decisive factor is to continue economic innovation, thoroughly transform the electricity industry into a market economy and transform economic activities in the Vietnam Electricity Corporation into business under the market mechanism. In turn, this is the foundation on which to establish and develop the income distribution regime in the Corporation. In essence, this is a radical change.

to change the income distribution regime and mechanism of the centrally planned, bureaucratic, subsidized economic model to the distribution regime and mechanism of the market economy. It requires a change in thinking from administrative, subsidized, command thinking to market economic thinking, a fundamental change in the relationship between the State and enterprises, between enterprises and the market, and the establishment of a business regime according to the market mechanism in the economic activities of enterprises. In other words

Go, innovation of the distribution regime and mechanism here is a systemic change, from changing the economic regime and mechanism to the distribution regime and mechanism, and in turn, changing the distribution regime and mechanism, as a link, a part of the economic relations system, has a decisive meaning in changing the entire economic regime and mechanism, forming the driving force for economic development. This implies, changing

Changing distribution relations is not limited to the content of paying workers.

dynamic, but the overall income distribution of the entire reproduction process, in

that is the reproduction of labor power. From a political economic perspective, the core of

Economic innovation and distribution relationship innovation in Vietnam Electricity Corporation today are the marketization of the electricity industry and the commercialization of activities.

The power supply activities of electricity enterprises, on that basis, innovate and establish the regime and mechanism of income distribution in EVN. The solutions for the process of forming the regime and mechanism of distribution in the electricity company only outline the basic contents of the process of innovating the regime and mechanism of income distribution in EVN. In other words, the regime and mechanism of income distribution in EVN will be established and completed in the development process.

List of author's works

1. Dau Duc Khoi (1994) “Diversifying investment capital sources - Key measures to develop the electricity industry”. Journal of theoretical research , October 1994, pp. 10-12.

2. Dau Duc Khoi (2001) “Industrialization, modernization and labor market development in Vietnam”. Journal of Economics and Development , November 2001, pp. 35-40.

3. Dau Duc Khoi (2006) “The 500kV North-South transmission line circuit 2: The pride of Vietnam's internal strength”. Communist Magazine , February-March 2006, pp. 50-54.

4. Dau Duc Khoi (2006) “EVN contributes to the development of the stock market”. Vietnam Electricity Magazine , May-June 2006, pp. 9-11.

5. Dau Duc Khoi (2006) “Building a single-price electricity market”. Vietnam Electricity Magazine , September-October 2006, pp. 2-3.

References

1. Ministry of Labor, War Invalids and Social Affairs (October 2003). Report of the mid-term review conference on poverty reduction and employment in the 2001-2005 period .

2. Ministry of Labor - Invalids and Social Affairs. Documents of the workshop on reforming wage policy during the transition period in Vietnam .

3. Ministry of Labor, War Invalids and Social Affairs. Workshop documents on the issue of wage policy innovation in Vietnam .

4. Ministry of Labor - Invalids and Social Affairs. Circulars on labor policies.

wages and income in state-owned enterprises .

5. Labor Code of the Socialist Republic of Vietnam, supplemented and amended in 2002 .

6. Ly Ban (1999). General theory of distribution of labor . National Political Publishing House, Hanoi.

7. Ha Binh (1992) “The situation of income distribution of Chinese enterprises and

Current countermeasures”. Journal of Theoretical Information , No. 8.

8. Ho An Cuong (2003). China - Grand strategies . Thong Tan Publishing House.

9. Mai Ngoc Cuong - Do Duc Binh (1994). Income distribution in a market economy . Statistical Publishing House.

10. Tran Kim Dung (1993) “Methods of income distribution and reasonable salary payment in non-state enterprises”. Journal of Economic Development , No. 38.

11. Phan Vinh Dien (2005). Reforming the salary regime in the administrative sector of Vietnam . PhD thesis.

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