Theory and Practice

Continue to renew and improve the efficiency of Military enterprises

8/12/2022 7:35:52 AM

Over the past time, through their economic production, the whole army in general and Military enterprises in particular have shown their proactiveness in mastering, concretising and creatively applying the viewpoints and policies of the Party and State on closely combining economy with national defence, national defence with economy. Currently, in the face of unpredictable impacts of natural disasters and diseases, trade war, protectionism, monopoly, armed conflicts, etc., it is required that the whole army to continue to thoroughly grasp and implement drastic solutions to improve the operational efficiency of Military enterprises, to meet the requirements of national construction and defence in new situation.

Military enterprises are the key force of the Army in performing the function of a "labour army". They operate in various fields and industries with the main mission of economic development associated with consolidating and raising defence potentials for the cause of national construction and defence. In recent years, thoroughly grasping the Party and Government's policy on restructuring and improving the efficiency of state-owned enterprises, the Central Military Commission and the Ministry of National Defence have focused on leading, directing, and resolutely restructured, renovated and improved the operational efficiency of Military enterprises and achieved positive results.

In particular, facing the severe impact of the Covid-19 pandemic, US-China trade war, military conflict between Russia and Ukraine,...which have disrupted production and supply chains, Military enterprises always closely adhere to the guidelines of the Party, Government and regulations of the Ministry of National Defence, proactively adapt and adjust production and business plans flexibly and creatively. It is noteworthy that Military enterprises operating in strategic areas, especially difficult and foreign areas, not only maintain and develop production well, create jobs for local people, but also bring about profound political significance in terms of national defence, security and foreign affairs, contributing to promoting the image and position of the Vietnam People's Army with international friends, etc.  In addition, Military enterprises have spent a considerable budget to implement social security policies and gratitude repayment activities, contributing to brightening the image of "Uncle Ho's Soldiers" in the hearts of domestic people and international friends.

Cargo shipping at the Sai Gon New Port Cooperation (Photo: VNA)

In the coming time, the country is focusing on economic restructuring in association with the renewal of the growth model, in which restructuring state-owned enterprises is a strategic breakthrough. In that context, the restructuring, renewal and improvement of operational efficiency of Military enterprises should be further promoted. In order to fulfill their tasks well in the coming time, functional agencies of the Ministry of National Defence, responsible agencies, leaders and commanders of Military enterprises need to thoroughly grasp and perform well the following tasks and solutions:

Firstly, strengthen the leadership and direction of Party committees and commanders at all levels for the task of restructuring, renovating and improving the operational efficiency of Military enterprises. Branches, responsible units and Military enterprises should continue to thoroughly grasp the resolutions, directives and projects of the Party, the Government, the Central Military Commission and the Ministry of National Defence on restructuring, renewing and improving the operational efficiency of state-owned enterprises in the Army, directly Resolution No. 425-NQ/QUTW, dated May 18, 2017 of the Central Military Commission “On reorganisation, renewal and improvement of operational efficiency of Military enterprises to 2020 and beyond" and Decision No. 360/QD-TTg, dated March 17, 2022 of the Prime Minister approving the Project of "Restructuring state-owned enterprises, focusing on economic groups and state-owned corporations in the period between 2021 and 2025" and concretise into their own leadership resolutions. At the same time, they should speed up the completion of schemes and plans on arrangement, renewal, equitisation restructuring and settling policies for employees; build the leadership and operation mechanism of the Party Committee, the model for business administration, financial and defence asset management and strategic orientation for business development after renovation and restructuring.

Second, continue to develop, supplement and complete the 5-year strategy for production, business investment and development in the period of 2021 - 2025 in accordance with the characteristics and fields of production and business of each Military enterprise. Currently, most of Military enterprises have developed their strategies and plans for production,  business, investment and development for the period of 2021 - 2025. However, in the face of rapid and unpredictable changes in the world and regional situations, the supplementations and adjustements of those strategies and plans are essential, even the decisive factor for the existence and development of every business. Accordingly, businesses should consider the characteristics of each industry and field; fluctuations of the market, supply chain,... to adjust their business plans and targets accordingly. In particular, importance should be attached to promoting and leveraging resources, especially high-quality human resources; actively applying scientific and technological achievements, the potentials and advantages of the market and operating area, market, etc., to adjust and supplement appropriate and effective business strategies and plans for realising business goals. In addition, it is necessary to well implement the direction of the Ministry of National Defence and the instructions of relevant agencies to keep production and business activities on right track with high efficiency. During the implementation process, each Military enterprise should adhere to their focal political tasks: complete well the Military and defence tasks, the targets and plans assigned by the Ministry of National Defence; preserve and develop state capital and equity; secure job and improve living standards for employees.

Besides, agencies, units and enterprises when conducting equitisation and rearrangement should study and develop solutions and mechanisms to attract strategic investors with sufficient financial, technological and financial capacity to enhance operational efficiency of the enterprise. The use and settlement of defence land and facilities should be carried out in a serious, expeditious and transparent manner in accordance with law.

Third, have investments to develop high-quality human resources; step up the application of science and technology; proactively apply information technology and digital transformation into production and business activities of enterprises. Accordingly, Military enterprises should have proper investments in the development of high-quality human resources, including managers and workers directly involving in production, to meet the requirements of both immediate and long term development. Closely combine the development of in-place personnel with the development of appropriate and effective policies to attract high-quality human resources from outside.

Facing the new development trend, for their sustainable development, advanced science and technology, and digital transformation are critical. Therefore, Military enterprises should closely base on their functions, tasks and areas of operation to promote appropriate application of science, technology and digital transformation; actively absorb and apply new and modern scientific and technical advances in the world in different fields, such as: leadership; production and business; technology export. At the same time, promote cooperation and mutual assistance in the application of science and technology and digital transformation, so that in the coming time, Military enterprises will really be pioneers in this field. In order to achieve high efficiency, Military enterprises should promote international cooperation in science and technology, diversify partners, select strategic partners from advanced countries in science and technology; closely associate international cooperation in science and technology with international economic cooperation; expand cooperation with civilian enterprises, especially foreign-invested enterprises in Vietnam, domestic and foreign economic organisations to promote resources, improve efficiency production and business performance, increase competitiveness and integration.

Fourth, closely follow functions and tasks, improve operational efficiency in association with strengthening Military and defence potentials. In production and business activities, each Military enterprise must always thoroughly grasp and strictly implement the guiding view that improving production and business efficiency must be associated with strengthening Military and defence potentials, building a regular, elite, increasingly modern Army, in order to meet the ever higher requirements of the cause of national construction and defence in peacetime as well as in the event of war. Therefore, all production and business activities must be aimed at strengthening Military and defence potentials. First of all, businesses should focus on research and  development, application of science and technology serving for defence and civilian purposes. For defence manufacturing enterprises, it is necessary to step up production, ensure sufficient quantity and improve the quality of defence products to serve the training and combat readiness of the Army. For businesses operating in strategic, remote, borders and islands areas, improving living standards for employees should be associated with with building defence and security potentials and postures and the firm “people’s heart and mind posture". As for enterprises investing abroad, in addition to well obeying the laws and regulations of the host country, it is necessary to conduct well defence foreign affairs, preserve and improve the image and position of the Vietnam People's Army and Vietnamese entrepreneurs in the eyes of international friends and cooperation partners.

Along with the above tasks and solutions, functional agencies of the Ministry of National Defence should continue to closely follow the actual situation, actively coordinate with all levels, branches, units and enterprises to promote review and research, and advise the Central Military Commission and the Ministry of National Defence to amend, supplement or issue new relevant regimes and policies in accordance with the State's regulations to create a favourable legal corridor for the restructuring and renewal of Military businesses in line with the defined guidelines and roadmap, hence improving their production and business efficiency, contributing to the construction of the Army, strengthening national defence and firmly defending the Fatherland in the new situation.

Senior Lieutenant General VU HAI SAN, Member of the Party Central Committee, Member of the Central Military Commission, Deputy Minister of National Defence