Pressure to change policies to develop private economy

Don't wait for businesses to ask or demand.

Mr. Do Ha Nam, Chairman of the Board of Directors and General Director of Intimex Group Corporation, said that the company was previously a branch of a state-owned enterprise that was equitized.

In 2024, Intimex's revenue will reach 1.5 billion USD and this year it is expected to reach approximately 2 billion USD, ranking 28th among the largest private enterprises in Vietnam. Intimex's great development experience is to build factories, and only with factories can you borrow capital, and currently there are more than 30 factories.

However, for many private enterprises, if they lack initial capital, it is difficult to build a factory, and if they cannot build a factory, where will they get the capital to borrow from... and so they get stuck in a vicious cycle. Then, if the enterprise goes into production and business, tax policies will also cause many problems.

Mr. Do Ha Nam, Chairman of the Board of Directors and General Director of Intimex Group Corporation

Mr. Nam hopes that the government will proactively have support policies to meet the development needs of private enterprises.

"In my opinion, each industry must build a leading enterprise. In fact, state-owned corporations are very strong, but in a market economy they cannot grow because they have to bear many costs. So private enterprises must build leading enterprises and must have policies. And when leading enterprises are built, the state's policy mechanism must follow those enterprises because behind them are millions of workers and millions of farmers. " - Mr. Nam expressed his opinion.

Sharing the same view, Mr. Phan Dinh Tue, Vice President of Ho Chi Minh City Business Association (HUBA), Chairman of the Board of Directors of Bamboo Airways, proposed that the relationship between the state and private enterprises should be viewed as the relationship between enterprises and customers. Enterprises that want to sell products must think in the direction of what customers need, what they like and must find ways to meet those needs.

Thus, the government proactively knows what businesses need to prepare with policies, mechanisms, and regulations to meet the needs of business development. If we wait until problems arise before resolving them, it will be very difficult and costly.

"For example, in our field, the aviation business is very difficult and to be effective and develop sustainably, there must be an accompanying service ecosystem. However, when approaching these conditions, private aviation cannot be as favorable as state aviation. Now, how can we be equal, on par with state-owned enterprise investors, and have fair and equal access to policies?" - Mr. Tue shared.

From control to creation

Dr. Can Van Luc said that it is necessary to refer to international private economic development strategies and policies and to choose appropriate experiences.

According to him, China's model is a practical lesson, demonstrating the change from state "control" of the private economy to "creation" to promote private economic development.

Currently, China's private economy (including household businesses) contributes about 60% of GDP and 50% of the state budget. Meanwhile, Vietnam's private economy only contributes about 50% of GDP and 30% of the state budget, showing that the development potential is still very large.

Dr. Can Van Luc

Dr. Can Van Luc proposed a number of solutions, including perfecting institutions and creating breakthroughs in improving the investment and business environment. At the same time, Vietnam needs to amend the Law on Support for Small and Medium Enterprises, reduce taxes for small and micro enterprises, and cut 30% of administrative procedures...

"It is necessary to classify enterprises for appropriate management according to scale and nature of operations, large-small-medium management is different. Quickly complete the legal framework and issue a strategy for private economic development. I also propose not to support enterprises in a leveling manner, according to scale, but to support according to the actual level of contribution of enterprises to the country, specifically contribution to the budget." - Dr. Can Van Luc proposed.

Private enterprises need to be created a transparent and fair production and business environment.

According to Associate Professor Dr. Tran Dinh Thien, former Director of the Vietnam Economic Institute, in order for the private economy to develop its strength, the state needs to remove constraints and obstacles through policies. First of all, it is necessary to create an equal production and business environment for private enterprises on par with state-owned enterprises and FDI enterprises.

The spirit is to change policies towards the private economy in terms of capital, taxes and many other things, not to amend existing policies. There needs to be a new system of institutions and policies that have a positive impact on the private economy.

The General Secretary and Prime Minister raised the issue of the private economy with great pressure requiring it to be solved, must be done, and cannot be backed down.

Mr. Thien emphasized: "Private enterprises, Vietnamese enterprises must be designed to become a business force, a block of strength, an interconnected structure, organized in a circuit, a chain, large enterprises pulling small enterprises. To develop, private enterprises, especially pioneering enterprises, create pressure to change policies, not ask for policies."

Identifying the private economy as the most important driving force in economic growth shows that from here the private economy is placed in the right position and role. And from there, there will be changes in policy so that this sector can truly promote economic growth. There, the role of the state needs to be in the direction of paving the way, leading and most importantly, building a favorable business environment for private enterprises to develop.