Strengthening and Restructuring Hanoi’s State Economic Sector

In Resolution No. 79-NQ/TW, the scope of the state economy has been comprehensively defined for the first time with six pillars: Land and resources; public assets and infrastructure; state budget; state-owned enterprises; state credit institutions; and public non-business units.

Through a comprehensive review and assessment of these six resource pillars, it is evident that the city still has significant room for developing the state economy. Currently, Hanoi holds very large state economic resources. Hanoi has a large area of 335,984 hectares, offering potential for development. The city manages 5,773 office buildings, operational facilities, and specialized housing funds across 784 locations. Simultaneously, it manages a large technical and social infrastructure system, including a road network with a total length of 24.8 thousand kilometers, 2,438 public educational institutions from preschool to university, 42 public hospitals and a grassroots healthcare system in 126 communes and wards, 6,489 historical-cultural relics, and 4,570 cultural institutions.

The city has 54 enterprises with state capital, where the total state capital held is 28,623 trillion VND. State-owned enterprises play a core role in providing essential public services and in some sectors with a spreading effect; there are 2,867 public non-business units, playing an important role in providing essential public services such as education, healthcare, culture…

Hanoi is not only a large locality but must also play a central role in leading, creating, and spreading development. Therefore, strengthening and restructuring the state economic sector is seen as an important foundation, creating “material internal strength” for the Capital to make breakthroughs in the new period.

In the multi-sector economic structure of the Capital, the state economy has always been determined to play a leading role, especially in key areas such as transport infrastructure, energy, finance – budget, land, and public services. However, in the context of deep and broad integration and increasingly high competition, the requirement to enhance the efficiency, governance capacity, and competitiveness of this sector is more urgent than ever.

Resolution No. 79-NQ/TW is not merely about adding new policies but shows an important step in perfecting the strategic architecture of national development.

For Hanoi – a place that converges great national strength and resources, this is not only a policy implementation requirement but also an opportunity to affirm its role as a locomotive, a center for spreading value and shaping development standards for the whole country.

Nevertheless, it is necessary to distinguish between the Central state economy in Hanoi and Hanoi’s own state economy for accurate assessment, because the operational mechanism of the Central state economy is decided by the Central government. Hanoi’s state-owned enterprises are being managed under the common national institutional framework. Hanoi has a large scale, so the Central government has issued separate resolutions multiple times to address issues for Hanoi. However, it must be emphasized that Hanoi has a completely different stature, and such solutions are still insufficient. Hanoi’s state economic sector remains constrained by the common institutional framework.

Fundamentally, it can be seen that Hanoi’s state economy has made good efforts, but the institutional framework has not reached a level that allows Hanoi to grow in line with its advantages and actual capacity. Opening up for Hanoi should not only be about loosening mechanisms, as that would make it difficult for Hanoi to achieve breakthroughs.

“Hanoi’s state economy needs to be unblocked, including in terms of resources, not just in the enterprise sector. Hanoi needs to go first, creating a development model; not competing with the whole country but competing with major cities in the region and the world.”

Granting Maximum Authority and Responsibility for the Capital to Rise

Regarding the requirements for Hanoi’s state economy in the coming period, it is emphasized that first, the city’s leadership apparatus must establish a non-linear vision, transitioning to a different era of development.

To shape the game, Hanoi must clearly envision its future, meaning it must compete globally, stand shoulder to shoulder with the world, and from there build a path to that goal. The primary mission is to establish a vision for semiconductor industry,

Hanoi

Hanoi is the capital of Vietnam, with a history spanning over a thousand years since its establishment as the capital of the Đại Việt kingdom in 1010. It is renowned for its well-preserved French colonial architecture in the Old Quarter, ancient temples like the Temple of Literature, and its pivotal role as the political and cultural heart of the country throughout various dynasties and modern conflicts.

road network

A road network is a system of interconnected routes that enables transportation and trade, with origins tracing back to ancient pathways like the Roman roads, which were engineered for military and administrative efficiency. Over centuries, these networks have evolved from simple dirt trails into complex modern infrastructures of highways and streets, fundamentally shaping economic development and societal connectivity. Today, they form the vital arteries of global commerce and daily life.

public educational institutions

Public educational institutions, such as schools and universities, are foundational structures in societies designed to provide formal learning and skills to the general population. Their modern history in many parts of the world is often linked to movements for universal literacy and state-building from the 18th and 19th centuries onward, evolving from earlier religious and private models. Today, they are seen as crucial for social mobility, civic engagement, and national development.

public hospitals

Public hospitals originated in ancient times, often as charitable institutions for the poor and travelers, but the modern public hospital system largely developed in the 19th and 20th centuries. Funded by government and designed to serve all citizens regardless of ability to pay, they are a cornerstone of national healthcare systems, providing essential medical services, emergency care, and specialized treatments. Their history reflects the evolution of public health policy and the societal belief in healthcare as a universal right.

historical-cultural relics

“Historical-cultural relics” is a broad term referring to tangible objects or sites from the past that hold cultural, historical, archaeological, or artistic significance. These relics, which can include anything from ancient tools and manuscripts to buildings and monuments, serve as primary sources for understanding past civilizations and their development. Their history is inherently tied to the story of human activity, and preserving them is crucial for maintaining a tangible connection to our shared heritage.

cultural institutions

“Cultural institutions” is a broad term referring to organizations dedicated to preserving, studying, and presenting human heritage, such as museums, libraries, archives, and theaters. Historically, they evolved from private collections and royal archives into public-facing entities during the Enlightenment and the 19th century, driven by ideals of public education and national identity. Their core mission is to safeguard cultural artifacts and knowledge, making them accessible for public enrichment and scholarly research.

state-owned enterprises

“State-owned enterprises” are not a specific place or cultural site, but a category of economic entities. Historically, they are companies owned and operated by a government, playing a major role in the planned economies of the 20th century, such as in the former Soviet Union and early post-1949 China. Today, they remain significant in many countries, often controlling key national industries like energy, transportation, and telecommunications.

public non-business units

“Public non-business units” is a term from China’s administrative system, referring to state-funded institutions like public schools, hospitals, and research institutes that provide social services rather than operate for profit. Historically, they were established under the planned economy to deliver essential welfare and public goods, and they continue to be a core part of China’s social service framework today.