Vietnam Prepared to Share State-Owned Enterprise Reform Expertise with Laos: Prime Minister
Prime Minister Pham Minh Chinch of Vietnam recently met with Saleumxay Kommasith, a Politburo member and Deputy Prime Minister of Laos, in Hanoi, to discuss ways to strengthen cooperation between the two nations, particularly in the area of state-owned enterprise (SOE) reform.
During the meeting, PM Chinch outlined Vietnam's recent SOE reform efforts, including streamlining enterprise portfolios, advancing equitisation, divesting State capital, and refining institutional and policy frameworks to boost operational efficiency. He also emphasised the importance of empowering SOEs, integrating IT and digital transformation, fostering innovation, and optimising human resources.
PM Chinch shared Vietnam's experience on modern corporate governance, highlighting practical experience at Vietnamese State corporations and economic groups as valuable for Laos. He expressed Vietnam's readiness to share its experience in reforming and restructuring SOEs with Laos, which is currently undertaking broader government restructuring to reduce costs and address high public debt, especially related to Chinese loans under the Belt and Road Initiative.
Saleumxay Kommasith praised Vietnam's SOE reform experience and operational models as valuable lessons. He affirmed Laos' pursuit of strengthening cooperation with Vietnam, particularly in SOE management, development, and innovative governance models. He also expressed Laos' interest in learning from Vietnam's expertise in SOE reform, management, equitisation (partial privatization), and public–private partnerships (PPP).
The two leaders agreed on proposals for joint projects such as building petroleum storage facilities and shared industrial-economic zones to facilitate cross-border economic integration. They also discussed strengthening institutional coordination, mutual visits, and agency cooperation to elevate bilateral economic and trade relations, including energy and logistics.
Vietnam's reform and restructuring of SOEs is more advanced and comprehensive compared to Laos. By 2024, Vietnam's SOEs had total assets of around 215 billion USD, with a clear goal to develop 30 SOEs with billion-dollar revenues by 2030. In contrast, Laos is focusing on cutting ministries and streamlining the state apparatus to address high public debt.
PM Chinch also mentioned measures to combat corruption and other negative phenomena in SOEs. However, Saleumxay did not mention any specific measures in this regard. PM Chinch affirmed Việt Nam's pursuit of strong reforms to ensure operational efficiency, transparency, and compliance with market mechanisms in SOEs.
The cooperative spirit between Vietnam and Laos reflects Vietnam’s readiness to support Laos under legal frameworks, highlighting a partnership dynamic whereby Vietnam’s more advanced SOE reforms and economic strategies can assist Laos in improving governance and efficiency in its state sector. This cooperation is strategically important for sustainable economic growth in both nations.
- The ongoing SOE reform in Vietnam, which includes technology integration, AI adoption, and digital transformation, is a key topic of interest in the discussions between the two nations.
- The economy and business sectors of both Vietnam and Laos could potentially benefit from Vietnam's advanced policy-and-legislation on SOE reform, as Vietnam proposes sharing its expertise in equitization, public–private partnerships, and innovative governance models.
- The vital financial driver of SOEs in Vietnam, its billion-dollar earnings, and its ambitious goal to elevate 30 SOEs to this level by 2030, are points of comparison and learning for Laos as it navigates its own SOE reform efforts.
- The meeting also touched upon the importance of investing in joint projects, such as petroleum storage facilities and shared industrial-economic zones, as means to facilitate economic integration between the two nations.
- In an effort to further strengthen bilateral relations and ensure compliance with market mechanisms, the leaders agreed upon fostering institutional coordination, promoting transparency, and addressing corruption within SOEs, as this forms an integral part of the overall policy frameworks applicable to both Vietnam and Laos.
