State-owned enterprises demand fair competition with private individuals 1
In 2012, when Jetstar Pacific transferred from the State Capital Business Corporation to Vietnam Airlines, many people thought that the aviation market could return to a monopoly.
Vietnam Airlines is facing fierce competition from private rival Vietjet.
Vietnam Airlines’ market share is getting smaller and smaller, decreasing by an average of 5-6% each year and mainly falling into the hands of Vietjet.
Meanwhile, Vietjet Air, with a much smaller scale, reported a profit of 120 billion VND.
The competition between the two airlines not only takes place on the routes but also into the factories.
The story between Vietnam Airlines and Vietjet Air in the aviation industry is just a small example of the big competition taking place in the economy, where state-owned enterprises are losing many advantages to private competitors.
The playing field for the private economic sector will become more and more open with the policy of promoting restructuring and equitization of state-owned enterprises.
Many opinions say that the private sector itself has advantages that state-owned enterprises cannot have, and can make the game, in many cases, difficult to be fair and fair.
A 2013 report from the Ministry of Natural Resources and Environment showed that more than half of nearly 1,000 issued licenses had violations and were all under local jurisdiction.
This situation is not just about your business or the steel industry.
Competition between public and private enterprises is still hot on the National Assembly forum.
After hearing this story, the owner of a strong private beverage brand laughed loudly.
According to economic experts, the rise of the private enterprise sector with strong brands such as Hoa Phat, VietJet, Trung Nguyen… has placed state-owned enterprises in fiercer competition, requiring restructuring.
However, economic expert Le Dang Doanh said that sadly, not many Vietnamese businesses compete with technology, management capacity, or product quality, but most compete with… relationships.
According to him, by the end of 2015, the ASEAN economic community will be established, creating a unified market.
