Need for 'incubation' mechanisms and policies for the private economic sector to accelerate

“Nurture” and “accelerate”

It can be said that the Party and the State have never paid as much attention, focused on, and created all conditions for enterprises to develop as they do today. According to the assessment of Dr. Mac Quoc Anh - Vice President of the Association of Small and Medium Enterprises (SMEs) of Hanoi: In recent times, Vietnam has made many significant strides in perfecting the legal framework, reforming administrative procedures, as well as creating favorable conditions for the private economic sector to participate in the integrated economy.

Accordingly, the business environment has been continuously improved. The World Bank's report shows that Vietnam's business environment index has been continuously improved before the Covid-19 pandemic (from 82/190 economies in 2016 to 70/190 in 2020); The Government has also made efforts to reduce business conditions. Since 2016, the Government has reduced or simplified nearly 50% of business conditions and more than 60% of specialized inspection procedures; the Enterprise Law 2020 and the Investment Law 2020 have helped to make the investment environment transparent, reduce administrative barriers, and increase business freedom for private enterprises (PEs)...

Mr. Nguyen Xuan Phu - Chairman of the Board of Directors of Sunhouse Group Corporation

Talking about the current opportunities for Vietnamese enterprises, Mr. Nguyen Xuan Phu - Chairman of the Board of Directors of Sunhouse Group Corporation commented: Currently, Vietnam is in a favorable period to welcome new opportunities. The US-China trade tension is taking place, when the US imposes tariffs on China, the wave of searching for supply chain shifts from China to neighboring countries is happening faster and stronger. In particular, Vietnam is one of the countries with many advantages to receive this wave of shifts.

Need strong legal mechanism

According to the Chairman of the Board of Directors of Sunhouse Group Corporation: When looking for new suppliers, international customers have specific conditions that only when these conditions are met, Vietnamese enterprises can easily receive business opportunities. Accordingly, Vietnamese enterprises, especially private enterprises, need to meet the conditions and factors of "competitiveness". However, it is difficult for enterprises today to try to find opportunities or create their own competitive capabilities without the support of the State to create national competitiveness. Therefore, enterprises always want the State to issue policies to support enterprises to easily catch the wave of change.

First, it is necessary to create an environment with competitive production costs compared to other manufacturers in the region; Next, it is necessary to manage land (industrial land and residential land) at competitive prices: High industrial land prices make it easy for foreign investors to move to other countries. High residential land prices, high living costs, leading to high wages for workers, in the long run, increasing production costs, investors will also move; In particular, it is necessary to optimize administrative procedures: Foreign investors need to deploy quickly - usually within 3 - 6 months, they need to have a factory to produce orders, if slower, Vietnamese enterprises will lose the opportunity. "Those are the factors that Vietnamese enterprises need to pay attention to in order to form a team of entrepreneurs with a global mindset" - affirmed.

Mr. Le Ngoc Dung - Chairman of Vietnam Jewelry and Gemstone Association.

Sharing about the current difficulties of enterprises, Dr. Mac Quoc Anh said: Currently, although there have been many reform efforts, there are still overlapping laws and regulations, causing difficulties for private enterprises. In addition, we are lacking support policies for SMEs (according to a report by VCCI, more than 90% of Vietnamese enterprises are SMEs, but financial and credit support policies are still not really effective). On the other hand, private enterprises still face difficulties in accessing land and credit due to complicated procedures and administrative barriers. In addition, there is a shortage of high-quality human resources, especially recruiting personnel with technological skills.

To overcome the above limitations and shortcomings, Dr. Mac Quoc Anh recommended that the Government continue to reform institutions in a synchronous, transparent and simplified manner in investment and business processes. In particular, it is necessary to build a mechanism to encourage private enterprises to participate in strategic sectors such as: Energy, high technology, and supporting industrial production. In particular, he proposed to create a financial and credit support mechanism specifically for SMEs.

To raise the level of enterprises and develop the private economy in the era of national development, Mr. Le Ngoc Dung - Chairman of the Vietnam Jewelry and Gemstone Association emphasized that it is necessary to synchronously implement the following solutions:

Firstly, perfecting institutions and policies: Reforming the business environment: Continuing to improve administrative procedures, reducing compliance costs, creating a fair competitive environment; Perfecting the legal framework: Reviewing, amending, and supplementing laws and decrees related to private enterprises, ensuring transparency and stability; Supporting access to capital: Creating conditions for private enterprises to access credit sources and venture capital; Developing the market: Expanding domestic and international markets, creating opportunities for private enterprises to participate in the global value chain.

The synchronous implementation of solutions will contribute to improving businesses and developing the private economy. (Illustration photo)

Second, improve the competitiveness of enterprises: Technological innovation: Encourage enterprises to invest in research, development, and application of new technologies; Improve the quality of human resources: Train and foster a workforce with professional qualifications and management skills; Build brands: Support enterprises in building brands, enhancing reputation in the market; Strengthen linkages: Encourage enterprises to link, cooperate, and create collective strength.

Third, promote the role of Associations and representative organizations: Enhance the participation of Associations and representative organizations in the policy-making process, protecting the legitimate rights and interests of enterprises; Improve capacity: Improve the capacity to advise, support, and provide information to enterprises; Build networks: Build a network connecting enterprises, creating forums for exchange and sharing experiences.

Fourth, building corporate culture: Promoting business ethics: Building a corporate culture that promotes business ethics and social responsibility; Encouraging entrepreneurship: Creating a favorable environment for startups and innovation; Respecting intellectual property rights: Raising awareness of intellectual property rights, encouraging protection of intellectual property rights...

In particular, Chairman of the Vietnam Jewelry and Gemstone Association Le Ngoc Dung also highlighted the State's support measures in supporting trade promotion: Supporting enterprises to participate in fairs, exhibitions, and trade connections; Training support: Organizing training courses on business administration and business skills; Consulting support: Providing consulting services on law, finance, technology, etc. "The synchronous implementation of the above solutions will contribute to raising the level of enterprises and developing the private economy, creating an important driving force for the socio-economic development of the country in the era of national development", Mr. Le Ngoc Dung shared.

V.Huong - D.Trang