In early 2026, Vietnam introduced a major shift in its economic governance with the issuance of Politburo Resolution No. 79-NQ/TW dated 06/01/2026, focusing on the development of the state economy. This resolution marks a decisive redefinition of how State Owned Enterprises (SOEs) are positioned within Vietnam’s socialist oriented market economy.
Rather than retreating from the market, the Vietnamese state is recalibrating its role. The new strategy emphasizes modern governance, market discipline, and strategic leadership, aiming to transform SOEs from administratively managed entities into competitive, globally relevant economic actors.
From Administrative Control to Developmental Governance
The most fundamental change introduced by Resolution 79 is a shift in mindset. Vietnam is moving away from rigid administrative control toward a developmental and enabling governance model.
Instead of directing SOEs through command based mechanisms, the state now focuses on creating legal frameworks, institutional space, and strategic direction. SOEs are expected to pioneer new growth models grounded in science and technology, innovation, and digital transformation. The state acts less as a supervisor issuing orders and more as a strategic architect shaping long term development pathways.
This transition reflects Vietnam’s recognition that modern economic competitiveness cannot be achieved through administrative intervention alone, especially in an increasingly integrated global economy.
Clear Separation of Roles and Responsibilities
A core principle of the new strategy is the clear separation of three distinct functions.
First, the function of state capital ownership representation.
Second, the state’s macroeconomic management and regulatory role.
Third, the execution of political missions, public services, and essential utilities.
By separating these roles, Vietnam aims to ensure that SOEs operate under genuine market conditions. Political or social tasks can no longer be used to justify weak financial performance or inefficiency. This separation enhances transparency, accountability, and competitiveness, allowing SOEs to be evaluated primarily on economic outcomes while public service obligations are addressed through clearly defined mechanisms.
Expanding the Definition of State Economic Resources
Resolution 79 introduces a broader and more comprehensive understanding of the state economy. It is no longer limited to SOEs alone.
State economic resources now explicitly include land, natural resources, airspace, underground space, the state budget, national reserves, and public service units. These assets must be fully reviewed, digitized, and accounted for according to market principles.
This expanded definition reflects a strategic shift. Vietnam is treating national resources as integrated economic assets rather than fragmented administrative domains. Proper valuation and digital management of these resources are expected to unlock efficiency gains and support sustainable development.
Adopting International Governance Standards and Digital Platforms
Modernization is a central pillar of the new SOE strategy. Resolution 79 sets ambitious governance and digital transformation targets.
By 2030, 100 percent of SOEs are expected to operate on digital governance platforms. In parallel, all state owned groups and corporations must adopt OECD corporate governance principles, aligning Vietnam’s SOEs with international standards on transparency, accountability, and risk management.
This alignment is not symbolic. It is designed to place SOEs on equal footing with modern private enterprises, both domestically and internationally. Enhanced governance standards also support Vietnam’s ambition to integrate more deeply into global capital markets.
Protecting Officials Who Take Responsible Risks
One of the most notable institutional innovations in Resolution 79 is the establishment of mechanisms to protect officials who dare to think and act for the common good.
The resolution requires clear differentiation between objective business risks, unintentional mistakes, and deliberate legal violations. This approach aims to reduce the pervasive fear of responsibility that has often constrained decision making in the public sector.
By encouraging responsible risk taking, Vietnam seeks to unlock initiative and creativity among SOE leaders, fostering a culture of innovation rather than risk avoidance.
Concentrating Resources to Build National Champions
Rather than spreading investment thinly, the new strategy emphasizes resource concentration and professional management to create powerful economic groups capable of leading markets and competing globally.
Resolution 79 allows all proceeds from equitization and divestment to be reinvested into large scale SOEs or strategic technology and industrial sectors, instead of being absorbed into regular budget expenditure.
The strategic objective is explicit. Vietnam aims to build strong state led corporations and place more SOEs among the world’s top 500 largest enterprises. These entities are expected to function as market leaders, technological pioneers, and anchors of national economic resilience.
Redefining the Relationship Between the State and the Market
Resolution 79 clarifies the role of the state economy within Vietnam’s market framework.
The state economy is defined as a particularly important component that plays a leading role in macroeconomic stabilization, strategic autonomy, and long term development orientation. However, leadership does not mean dominance in every sector.
SOEs must operate fully under market mechanisms and compete on equal legal footing with private and foreign enterprises. Administrative intervention is replaced by modern governance tools, ensuring fair competition and transparency.
From Market Replacement to Market Leadership
A key conceptual shift is the transition from market replacement to market leadership.
Instead of competing directly with private firms across all sectors, SOEs are positioned as pioneers in strategic areas such as infrastructure, energy, national security, and industries where private investment is limited or reluctant.
SOEs are expected to open new markets, build foundational capacity, and guide other economic actors into global value chains. Public private partnership models are actively encouraged, including innovative formats such as public investment with private governance or private investment using public assets.
Balancing State, Market, and Society
Resolution 79 also addresses the delicate balance between state intervention, market forces, and social responsibility.
The state retains the right to intervene decisively in urgent or exceptional circumstances to protect economic stability, while respecting market principles under normal conditions. SOEs play a critical role in correcting market failures, ensuring social welfare, and delivering essential services to remote or less profitable regions.
In this sense, SOEs function not only as economic actors but also as instruments of social cohesion and national integration.
Vietnam’s new economic strategy does not diminish the role of State Owned Enterprises. Instead, it redefines and modernizes that role.
Through Resolution 79-NQ/TW, Vietnam is transforming SOEs from administratively managed entities into strategically governed, market oriented, and globally competitive institutions. The state evolves from a caretaker of assets into a strategic investor and pathfinder, setting direction, mobilizing resources, and enabling the broader economy to move forward.
In practical terms, the state economy acts like a pace car in a race. It sets the route, maintains stability, and creates momentum, allowing private enterprises to accelerate and compete within a transparent and predictable framework. This redefinition places SOEs at the center of Vietnam’s long term development vision while aligning them with global economic realities.
