By adopting international standards and "sandbox" mechanisms, Vietnam can empower SOEs to master strategic technologies and compete globally, moving away from the administrative "one size fits all" management model.

Huynh Thanh Dien, PhD, from Nguyen Tat Thanh University, pointed out four key issues that need attention.

First, it is necessary to clearly classify SOEs by function and operational objectives, rather than applying a uniform management mechanism. SOEs can be divided into three main groups.

The first group consists of infrastructure SOEs, whose role is to ensure the provision of essential services at reasonable prices and to promote regional connectivity and spatial development linkages.

The second group includes SOEs providing public services in areas such as education, healthcare, and culture, aimed at fulfilling social welfare objectives and improving the quality of life.

The third group comprises commercial SOEs operating in competitive markets with the objective of generating profits for the State and contributing to the state budget.

Each of these groups requires distinct objectives, evaluation criteria, and governance mechanisms, avoiding a “one-size-fits-all” approach.

Second, it is essential to ensure independence, standards, and transparency in SOE operations. The overarching principle is that the State should not directly intervene in daily business decisions, but instead manage through objectives, standards, and supervisory mechanisms.

SOEs must publicly and transparently disclose financial information, business results, and corporate governance practices in accordance with international standards, thereby creating market discipline and enhancing accountability.

Third, the independence and capacity of the SOE supervisory authority must be strengthened. This body must have sufficient authority, resources, and expertise to conduct objective oversight, free from local interests.

In particular, a clear risk management framework must be established as a basis for evaluating responsibility. When managers have fully complied with risk management processes but still encounter risks, there should be a mechanism for personal liability exemption. Only then can a true motivation of "daring to think, daring to do, and daring to take responsibility" be created.

Fourth, it is necessary to transparently identify the fields that the State needs to hold long-term and the fields where divestment is required.

State capital must be concentrated in key industries with strategic significance for national security, social welfare, and macro stability; meanwhile, in fields where the private sector can perform better, bold divestment is needed to improve resource allocation efficiency.

International experience shows that successful SOE models all share a common point: a clear separation between state management functions and ownership functions, granting substantive power to enterprises accompanied by strict and transparent monitoring mechanisms.

In Vietnam, despite many reform efforts, state management agencies still assume the role of owner representative, while the legal framework regarding the conditions and standards of owner representative agencies is not yet truly clear. This causes many SOE investment proposals and business expansions to be delayed, leading to missed market opportunities, according to Dien.

What do other countries do to develop SOEs?

Antoine Goupille, a lecturer in Management, School of Business at RMIT University Vietnam, pointed out three main points.

First is the professionalization of the ownership role. The most important lesson is shifting the State from a direct operational role to a professional strategic shareholder role. Singapore's Temasek is a prime example.

This organization operates as a state investment company independent of politics. Temasek requires commercial feasibility and international standard governance for the businesses in its portfolio.

"This separation allows SOEs to compete globally based on actual capacity, while reducing administrative constraints that impair operational efficiency," he told VietNamNet.

Second is the application of governance according to global standards. Typical SOEs worldwide apply strict corporate governance standards, often aligned with OECD principles, to clarify accountability and increase the autonomy of the management apparatus.

Partial listing or privatization, as seen in Brazil and Poland, aims not only to mobilize capital but also to introduce market discipline, increase transparency, and diversify ownership while maintaining strategic control.

Third is strategic focus and innovation. Successful SOEs often concentrate resources on strategic sectors where the private sector under-invests, such as national infrastructure, digital platforms, or pioneering technology.

Some Chinese SOEs, for instance, are showing that policy-oriented enterprises can still become innovation drivers in strategic, high-risk sectors, as long as they operate under a corporatized model with professional management.

Tran Chung