Currently, although accounting for more than 80% of the total workforce in the country, the private economic sector only contributes about 50% of GDP and 30% of the state budget.

To promote the sustainable development of the private economy , according to experts, a synchronous solution is needed, in which improving access to capital and encouraging business registration play a key role.

Specifically, priority is given to providing capital to registered enterprises in the first three years, with preferential interest rates and no collateral required. To ensure efficiency, enterprises must maintain a transparent financial reporting system to avoid misuse of capital. Second, the preferential capital mechanism helps reduce the initial financial burden for newly established enterprises, which are often micro and small. Finally, this is also a form of indirect investment by the State in startups, similar to the role of “angel investors”, to promote the sustainable development of the private economic sector.

In addition, isolated small-scale development lacking connections, unable to break through in scale and competitiveness, even many individual economic households lacking motivation to develop into enterprises and “not wanting to grow”… are limitations that have been identified in the private economic sector in recent times. To support this economic sector to develop and participate more deeply in the domestic, regional and international production value chain, many solutions have been and are being implemented.

Braised fish sauce, stir-fried fish with shrimp paste… these are typical rural industrial products of Bac Ninh province, honored in the top 100 famous ASEAN brands. However, these brands have only developed on a small scale in the province in recent times. According to the production unit, the output for the product is still a big challenge, even the plan to cooperate with large distributors to bring the product to consumers has not been able to be implemented yet.

Mr. Tran Huu Linh – Director of the Department of Domestic Market Management and Development, Ministry of Industry and Trade said: “In the coming time, the Ministry of Industry and Trade has developed very specific policies with new trade models, for example, allowing manufacturers to go directly to stores to shorten the distance and time. We set a goal that the rate of Made in Vietnam goods in modern distribution channels will reach 80 – 90%”.

Not only is it difficult for businesses to lack a production chain. For many businesses investing in the high-tech sector, the lack of domestic raw material supply has caused them to lose their competitive advantage. Given this reality, building and synchronizing a domestic supply chain is a requirement.

Along with the group of solutions for institutional and policy reform, many opinions believe that the solution of empowering or creating a mechanism for ordering and assigning tasks to the private economic sector should also be promoted. Only then can the private economic sector truly develop strongly.