Restructuring, renovation and improved performance of military-run enterprises are a matter of great significance to the whole Military nowadays. The execution of this difficult complex mission really requires drastic serious leadership and direction and high political determination through synchronous and appropriate solutions, thereby ensuring the established targets and requirements.

Thoroughly grasping the Party and State’s lines on reorganizing, renovating and improving the efficiency of state-owned enterprises, especially Resolutions of the 4^th and 5^th Plenums of the Party Central Committee (12^th tenure), over the past year, the Central Military Commission (hereinafter CMC) and Ministry of National Defence (MoD) have concentrated their drastic leadership and directions on executing restructuring, innovation and fostering the performance of military-run enterprises and attained positive results.

Sr. Lt. Gen. Tran Don addressing the Conference to implement the Project on restructuring, renovation, and improving the efficiency of military-run enterprises towards 2020 (photo: qdnd.vn)

Accordingly, Army-wide offices, units, and enterprises continue to firmly perceive Directive No. 430-CT/QUTƯ, dated 12-6-2015 by the Standing Board of the CMC and step up the execution of projects on rearranging, renovating, and developing military-run enterprises in the 2016 - 2020 period under Document No. 1604/TTg-ĐMDN, dated 10-8-2013 and Document No. 25/TTg-ĐMDN, dated 30-3-2015 approved by the Prime Minister. To date, the whole Military has equitized 32 enterprises, divested 10 joint stock companies and dissolved 3 ones; been in the process of equitizing 6 enterprises, divesting 11 joint stock companies, and dissolving 1 enterprise. In particular, alongside relevant military sectors, units and enterprises, the CMC and MoD have focused their determined leadership and directions on actively implementing the Project on “Restructuring, renovation, and improving the efficiency of military-run enterprises towards 2020” under Document No. 80/TTg-ĐMDN, dated 04-10-2017, approved by the Prime Minister (hereinafter the Project No. 80). The Project demonstrates the Government, CMC, and MoD’s objectives and determination to accelerate the restructuring and reorganizing of military-run enterprises with an emphasis on merging and restructuring military-defense enterprises whose operations are similar; completely equitizing and divesting commercial, construction, service enterprises and enterprises whose operations have little to do with military missions, etc.

With a high sense of political responsibility, on the approved Project No. 80, the MoD formulated its implementation plan; set up MoD-level Steering Board and advisory teams with their operational regulations; and held an Army-wide Conference on briefing and implementing the Project. Against all the odds, the whole Military has achieved initial important results after one year of intensively working on the Project. On the basis of the Government, CMC, and MoD’s directions, relevant Military sectors, units, and enterprises have fostered the work of political and ideological education and drawn up leadership resolutions, programmes, and action plans with practical solutions. Competent agencies within the MoD have actively examined, amended, supplemented, and issued a wide range of new statutory documents, laying legal foundations for the execution of the Project. To date, grounded in their assigned tasks, relevant military sectors, units, and enterprises have basically designed their reorganizing, restructuring and equitizing projects and plans on transforming into defense-economic divisions pending the higher echelons’ approval; completed the restructuring of state capital in 3 joint stock companies; divested 1 joint stock company under the General Department of Logistics.

Those encouraging outcomes reveal that the Military has been on track for restructuring and renovating military-run enterprises. Yet, there have been some limitations in the process. There has been insufficient awareness of reorganization, renovation and equitization works amongst some offices, units, and enterprises’ party committees, commandants and a portion of cadres and military workers and labourers, as evidenced by sluggish leadership and directions, passive implementation process and manifestations of being renovation-and-equitization-shy. In spite of foreseeable challenges and impediments, we are unable to predict arising inadequacies; some policies and principles pertaining to re-organization, equitization, and administration of military-run enterprises have not been synchronized and out of tune with realistic requirements, leading to sluggish progress in handling some contents of the Project, etc.

At present, the Party and Government is stepping up the economic restructuring in association with the innovation of growth model in which the restructuring of state-owned enterprises is considered to be a strategic breakthrough. As a result, the restructuring, renovation and improving the performance of military-run enterprises must be further strengthened. Upholding the tradition of being the vanguard of carrying out the Party and State’s guidelines and policies, our Military must be in the vanguard of successfully implementing Resolution of the 5^th Plenum of the Party Central Committee (12^th tenure) on continuing to restructure, renovate, and improve the efficiency of state-owned enterprises with an emphasis on the Project No. 80. To this end, military sectors, units and enterprises need to continue to take comprehensive and drastic measures with the highest political determination with an emphasis on some main points as follows.

1. Fostering all-level party committees and commandants’ leadership and directions over the mission of restructuring, renovating, and improving the efficiency of military-run enterprises, which acts as a matter of great significance to the performance of this mission. Accordingly, military sectors, units, and enterprises subjected to the restructuring need to continuously and firmly perceive higher echelons’ resolutions, directives, projects, especially the Project No. 80, Resolution No. 425-NQ/QUTW by the CMC, and uphold their sense of responsibility for implementing the mission. In the immediate term, it is necessary to review relevant schedules and roadmaps and take measures to implement the Project in line with realistic requirements whilst great value is attached to properly finalizing reorganizing, renovating, and equitizing projects and plans and proposing policies for labourers; designing operational and leadership mechanisms for party committees, boards of members and boards of directors as well as financial, defense property management mechanisms and  entrepreneurship development strategy directions following the process of restructuring and reorganizing. In addition, it is essential to synchronously implement the restructuring, arrangement, and renovation of military-run enterprises associated with the execution of Resolution No. 520-NQ/QUTW by the CMC on “leading the Military’s task of combining production activities and economic development with national defense towards 2020”; the Project on organizing the Vietnamese People’s Army’s forces towards 2021; the Project on planning the building and development of defense industry towards 2025 and vision towards 2035”, etc. The work of inspection and supervision should be strengthened so that the restructuring and renovation of military-run enterprises do not affect defense-military missions and production and business activities or cause any loss in the State and Military’s budget and assets. All-level party committees and commandants should be clearly assigned  a specific responsibility for executing restructuring and equitization road maps and plans and avoid taking arising challenges and difficulties as a pretext for delayed and prolonged restructuring. In the event of  restructuring tasks off schedule, it is a must to figure out reasons and hold relevant individuals and collectives to account and report to competent authorities for appropriate disciplinary actions. Competent agencies under the MoD, especially the Department of Economic Affairs need to collaborate with and monitor military units and enterprises, and facilitate their restructuring and reorganization on schedule.

2. Continuing to boost the work of political and ideological education and communications to heighten cadres, military workers, and labourers’ awareness and consensus on the restructuring mission. The implementation of the Project No. 80 will have a significant effect on the mentality and life of a portion of cadres, workers, and labourers as well as on organizational and operational structure of enterprises, especially those subjected to merging, equitization, divestment, or dissolution, etc. Therefore, military press agencies, communications and training agencies and units and enterprises’ party committees and commandants continue to step up the work of political and ideological education and communications on this mission with an emphasis on briefing cadres and military workers on the Party, State, and MoD’s guidelines and policies and making them conscious of the necessity and objectives of reorganizing and renovating military-run enterprises as well as attendant difficulties and challenges. The projects on reorganizing and renovating military-run enterprises should be fully and transparently made public so that labourers have a chance to make their voice heard and inspect and supervise them, thereby creating high consistency and consensus on this issue. Additionally, it is necessary to hold a post-mortem on restructuring and reorganizing missions and spread the best practice; and opportunely and harmoniously handle labourers’ legitimate aspirations. In the implementation process, it is essential to proactively correct deviant awareness and actions; and resolutely combat negative practices and manifestations of being equitization- and- renovation-shy and wastefulness, etc.

3. Focusing on taking synchronous measures to accelerate the restructuring and renovation in accord with approved plans and projects and enhancing the performance of enterprises. On the basis of approved projects and plans, military sectors, units and enterprises have actively conducted their restructuring and reorganization at all levels in conformity with higher echelons’ regulations and the requirements of military-defense missions. In the process, it is vital to seriously adhere to the CMC and MoD’s targets and directions, make proactive meticulous preparations, and take cautious comprehensive drastic and feasible measures to streamline production management apparatuses and design plans for transparently handling financial, asset, and property issues. Besides, it is crucial to well carry out personnel work, especially the selection and appointment of key and leading cadres of military-run enterprises, and employ ideologically and organizationally overarching measures to retain and develop skilled manpower with special attention paid to beneficiaries of military peculiarity policies and redundant personnel and those who are subjected to rotations, etc.

The ultimate objective of restructuring and renovation is to strengthen military-run enterprises and improve their efficiency and ensure the close coordination between national defence and economic development, meeting the requirements of the Military’s integration, development and mission in the new situation. Therefore, in parallel with accelerated restructuring, it is necessary to pay special attention to enhancing military-run enterprises’ production and business capability and efficiency as well as their performance of their military-defense missions. Accordingly, military units and enterprises need to actively formulate and finalize their synchronized enterprise regulations and business and production development strategies; invest in technological innovation; modernize their infrastructure and facilities; and improve financial capabilities and competitiveness whilst strengthening trade promotion, branding campaign and market expansion, building skilled manpower, and renovating and improving the effectiveness of enterprise administration in accord with military peculiarities and requirements of international economic integration. In addition, it is essential to proactively streamline and foster party committees and organizations’ leadership abilities and combativeness; to tightly adhere to the Party’s regulations and instructions concerning reorganized enterprises; and ensure the principle of Party leadership over military-run enterprises.

4. Actively researching, supplementing, and finalizing  a system of statutory documents, creating a significant legal foundation for the successful accomplishment of the Project’s objectives and tasks. Over the past time, inadequacies in relevant policies and regulations have impeded the reorganizing and renovation of military-run enterprises. Against this backdrop, MoD’s competent agencies need to continue to proactively collaborate with relevant ministries, branches, units and enterprises in advising the CMC and MoD on and giving recommendations to the Government on scrapping, amending, supplementing or issuing new regulations and policies pertaining to restructuring and reorganizing issues in tune with the State regulations, the Military’s missions of production and economic development, creating a legal corridor for the reorganizing and renovation of enterprises on schedule. Great value is attached to supplementing and perfecting principles, policies and regulations concerning equitization, divestment, merging, dissolution of military-run enterprises (special principles suggested if necessary); and principles and regulations on governing business and production activities, etc. In the immediate term, it is necessary to propose preferential mechanisms and policies on handling a backlog of work in restructuring, renovation, and improving the efficiency of military-run enterprises.

Thoroughly grasping the Party, Government, CMC, and MoD’s goals and directions, military sectors, units, and enterprises continue to uphold their sense of responsibility for successfully implementing the mission of restructuring, renovating, and improving the efficiency of military-run enterprises, contributing to building the Military and constructing and defending the Homeland in the new situation.

Senior Lieutenant General Tran Don, Member of the Party Central Committee, Standing Member of the Central Military Commission, Deputy Defence Minister