The move paid off, with more than enough rice for domestic production and very high revenue from rice exports.

On February 5, Prime Minister Pham Minh Chinh presided over a working session with the Commission for Management of State Capital at Enterprises (CMSC) and 19 state owned economic groups and general corporations, discussing  production and business plans for 2024.

At the conference, the Prime Minister mentioned the successes and problems of corporations, including the progress on Electricity of Vietnam’s (EVN) 500 kV circuit 3 transmission line, expected to be completed in six months.

PetroVietnam has also gained encouraging results in recent years after a period of difficulties. The Airports Corporation of Vietnam (ACV) has made progress, especially in building Long Thanh International Airport, and the Vietnam Railways Corporation made a profit in 2023.

Rice exports

In 2023, the government instructed enterprises to strengthen rice exports when the global prices were high. Some analysts were concerned about food security, warning of risks if Vietnam exported rice in high quantities. However, Chinh decided that Vietnam needed to grasp opportunities to boost rice exports as the domestic inventory level was high enough to ensure sufficient supply.

The wise decision allowed Vietnam to both earn high profits thanks to record high export volume, and ensure food supply for the domestic market.

Leaders of the Northern Food Corporation (Vinafood 1) announced that Vietnam has reached an agreement on rice trade at the governmental level with Indonesia and the Philippines, which are the two biggest consumers of Vietnam’s rice.

In late January, Vietnam won the bid to provide 350,000 tons of rice out of the 500,000 tons Indonesia called for bid. Vinafood 1 asked the Prime Minister to add rice trade to the agenda of upcoming working sessions with countries’ leaders.

Chinh, while praising the great achievements gained in 2023, stressed that Vietnam’s businesses must not be complacent and should try to fulfill the tasks assigned to them in 2024.

Electricity prices

At the conference, Chinh asked economic groups and general corporations, which hold large resources, to continue important missions and make a profit to make greater contributions to the country’s GDP growth and the state budget. The business results in 2024 must be higher than those in 2023.

Chinh outlined key issues for managing the big tasks: accelerate investments, with focus on three strategic breakthroughs, including institutional regime and workforce infrastructure; reform three old driving forces (investment, export, consumption) and create new driving forces (digital transformation, green transition, circular economy, knowledge-based economy and shared economy).

He also asked to restructure economic groups and general corporations with approved plans, with focus on effective management and workforce quality; financing; and business fields and input materials.

Chinh also urged to strengthen decentralization and reduce administrative procedures. Economic groups need to "dare to think, dare to do, dare to take responsibility" in carrying out tasks. They need to be steadfast in matters of principle but flexible in practice, and comply with the rules of the market economy.

Assigning specific tasks to the economic groups and general corporations, Chinh asked EVN to prevent electricity shortages; PetroVietnam to ensure enough oil and gas as planned; Vinacomin (Vietnam Coal and Mineral Industries) to ensure sufficient supply of coal based on long-term plans; Vietnam Steel Corporation to settle the problems on expanding Thai Nguyen steel mill Phase 2; Vietnam Airlines to stop losses and settle outstanding problems; and Petrolimex to prevent petrol product shortages.

Chinh told agencies to create a reasonable electricity price adjustment roadmap and not raise electricity prices sharply or suddenly. The Ministry of Industry and Trade (MOIT) has been asked to adjust the petroleum distribution network to improve inspection and supervision.

Thu Hang