With nearly 1 million enterprises and about 5 million individual business households, the private economic sector currently contributes about 51% of GDP and more than 30% of the national budget.
As General Secretary To Lam previously affirmed, the private economy is the key for Vietnam’s economy to take off, achieve sustainable growth and improve its position. In order to grow, it is necessary to develop policies and strategies that focus on the private sector.
The private economic sector currently contributes about 60% of total social investment capital. To achieve the growth target of over 8% this year, according to experts, the economy will need to mobilize about 174 billion USD, of which the state sector contributes about 36 billion USD and the private sector contributes about 96 billion USD.
To mobilize private resources, not only this year but also to create long-term growth momentum, a comprehensive development strategy is needed, focusing on this area.
Associate Professor, Dr. Tran Hoang Ngan – Economic expert commented: “We need stronger, more innovative, faster, and more specific policies like what we are doing, which is a matter of institutions. A stable, synchronous institution must be transparent, fair, and ensure fairness among economic sectors.”
Dr. Nguyen Quoc Viet – Public Policy Expert – Hanoi National University said: “Improving the business environment is how we reduce costs, reduce procedures, legal compliance costs… But another factor we must also see is that our business costs compared to other countries in the region and the world such as logistics costs, infrastructure costs… are relatively high. Reducing other costs also helps increase production and business efficiency”.
At the Seminar on Solutions to Promote Private Economic Development in Vietnam recently held in Ho Chi Minh City, experts emphasized the need to accelerate institutional reform, drastically cut 30% of administrative procedures, reduce business costs and shorten the time to handle administrative work.
In addition, it is necessary to create separate mechanisms and policies for each group of private enterprises, with tailored policies based on operational efficiency and the level of contribution to the state budget instead of the size of the enterprise.
On the business side, there is a great need for specific directions and fair treatment with other economic sectors.
Mr. Le Tri Thong – General Director of PNJ said: “Currently we are seeing big directions but specificity is also really needed. Deeper specificity is when businesses have specific investments. At that time there will also be a division of roles between large businesses leading the way and small businesses following, becoming a team to conquer together”.
“Private enterprises always want fairness. Fairness in policy mechanisms. Fairness in management and operations, and especially equal exploitation of infrastructure, equal exploitation of natural resources and national resources, then private enterprises will have the opportunity to take off,” said Mr. Phan Dinh Tue – Vice Chairman of the Ho Chi Minh City Business Association.
Creating more than 40 million jobs, equivalent to more than 82% of the total workforce in the economy, the private economy still has a lot of room to develop, as the most important driving force in economic growth.