Breakthroughs are needed to develop the private economy.

According to economic experts, to develop the private economy, the State needs to promote reforms and improve institutions to create breakthroughs and promote the development of private enterprises.

Private enterprises are creating many jobs for workers.

Driving force for development

Mr. Thai Thanh Quy, Deputy Head of the Standing Committee of the Central Policy and Strategy Committee, said that over 40 years of renovation, the Party's viewpoints and policies on the private economy have been clearly and correctly identified, affirming that the private economy is an important driving force of the economy and is encouraged to develop in all sectors and fields that are not prohibited by law.

In fact, the private economic sector has become the most populous sector and also the largest contributor to the Vietnamese economy. This sector has more than 940,000 enterprises, accounting for about 98% of the total number of enterprises, contributing 30% of the budget revenue, more than 50% of GDP, over 56% of total investment capital and creating jobs for 85% of the workforce.

Currently, in Vietnam, many large private enterprises such as Vingroup, Masan, Sun Group, Vietjet, Thaco, TH... have reached regional and global levels, becoming brands that bring pride to the Vietnamese people. In addition, more than 5 million individual business households spread across all localities in the country have also made many important contributions to economic growth, job creation, income increase, innovation promotion, poverty reduction and social stability. However, despite its increasing contributions, the private economy is still facing many barriers, hindering its development, unable to make breakthroughs in scale and competitiveness.

Rice enterprises have many contributions to Vietnam's rice export.

Meanwhile, Dr. Nguyen Duc Kien, former National Assembly delegate and former Head of the Prime Minister's Economic Advisory Group, also pointed out two main reasons why the private economic sector has not developed as expected. "First of all, the management system of ministries and local authorities has not really been innovated according to the socialist-oriented market economy model; the management of ministries is still heavily based on the mechanism of asking and giving, directly intervening in the management and mobilization of capital resources of enterprises. In addition, the provincial management apparatus, which represents the State and holds important resources for the country such as land, also manages in the form of asking and giving, instead of effectively managing and developing the country. For example, the Ministry of Planning and Investment (formerly), the governing body of the General Statistics Office, has never specifically announced the contribution of the private sector but only included it in the non-state economic sector. This makes policy making unclear and ambiguous, reducing the effectiveness of support policies from the State.

Secondly, the non-state economic sector is mostly small, micro-sized enterprises and individual business households, so production and business efficiency and the ability to participate in product value chains are low. Only a few enterprises have reached national and regional scale. The reason is that enterprises all originate from family scale, have outdated management methods; limited capital mobilization ability; and lack of knowledge and human resources to grasp and absorb new technology," said Dr. Nguyen Duc Kien.

Similarly, Mr. Nguyen Ngoc Hoa, Chairman of HUBA, said that currently, the problems that are hindering the capacity of private enterprises include: difficulties in input factors, in accessing land, technology, administrative procedures... Many enterprises complain about the administrative procedures that last for years, making it impossible for them to invest or expand production and business.

Support classification by industry

According to Mr. Nguyen Ngoc Hoa, in order for the private economy to develop, it is necessary to promote the implementation of policies to support the private economy with more open mechanisms. The support policies need to be more specific so that the beneficiaries are private enterprises. The State can provide KPIs (performance evaluation indexes) for ministries, branches, agencies, and local authorities and measure and evaluate the implementation efficiency.

"Businesses really hope that the authorities will intervene to resolve the difficulties and obstacles for the private economy. In addition, private enterprises also hope that when implementing support policies, they need to be clearly classified by group and industry; there must be separate policies for leading, large-scale, and strong-potential enterprises; policies for small and medium-sized enterprises and business households. On the other hand, management agencies need to review policies that have been issued but are not yet effective to adjust and improve. In the next 1-2 years, the leading role of public investment is very important; businesses hope to be able to access public investment sources in a transparent, public, and clear manner," said Mr. Nguyen Ngoc Hoa.

Many private enterprises have made large investments in tourism development in the southern provinces and cities.

According to Dr. Nguyen Duc Kien, in order to build and organize the implementation of the Resolution on supporting the private economy, it is necessary to first change the organization to create a breakthrough for the private economy. "To have a breakthrough, it is necessary to promote effective administrative reform and improve the transparent investment environment. The most important thing is to change society's perception of the private economy, in which the State needs to have a more open view and must be responsible for protecting enterprises and entrepreneurs from unjust public opinions. On the contrary, enterprises must also abandon their informal thinking and implement more modern and open corporate governance, daring to commit to the common economic development of the country," Dr. Nguyen Duc Kien suggested.

In order to facilitate the business community as well as strive to achieve the double-digit growth target in the coming time, some businesses have also proposed dedicated solutions. Mr. Mai Huu Tin, Chairman of the Binh Duong Provincial Business Federation, said that businesses need to focus on three core solutions: actively applying e-Government to eliminate the need to ask and give in licensing, applying technology to increase the accuracy of data and focusing on education. These are the leading core solutions to mobilize all resources in society to join hands in developing the private economy.

Meanwhile, Mr. Tran Viet Anh, General Director of Nam Thai Son Import-Export Joint Stock Company, said that management agencies need to have solutions to support private enterprises, especially small and medium enterprises. Specifically, support the group of individual household enterprises, small, micro and medium enterprises to develop by removing difficulties in investment, capital supply, administrative reform... The State can organize dialogues for each group, each different industry, thereby listening and understanding the difficulties that small and medium enterprises are facing, from which the State has specific support for this group through existing legal documents or laws to support enterprises, without needing to issue a series of new regulations.

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