More policies are needed to encourage private enterprises to "take on more"

At the workshop, Mr. Nguyen Ngoc Hoa, Chairman of the Ho Chi Minh City Business Association (HuBa) said that one of the difficulties of small and medium enterprises today is investing in technology due to limited financial resources. Therefore, there should be support policies for large technology enterprises and corporations so that they can come up with technology solutions, then small and medium enterprises can rent this software package, paying monthly, instead of paying once.

Workshop on Removing policy shortcomings to promote the role of the private economy in the Vietnamese economy

Mr. Nguyen Ngoc Hoa suggested that it is necessary to classify policy clusters for each group of enterprises. Specifically, there should be policies for small and medium enterprises, and for leading enterprises. Korea is an experienced country and has done very well in this issue so that the "big guys" can help small enterprises develop.

"They have policies for leading enterprises to lead a series of enterprises. They invested in Samsung, Hyundai... about 30 years ago and now enjoy the results. Therefore, we have to group policies, in which leading enterprises can be counted on the fingers, for this enterprise, what kind of policy do we have, it must be different from hundreds of thousands of small and medium enterprises. Especially, leading enterprises with leadership qualities are needed," said Mr. Hoa.

Economist, Dr. Can Van Luc, said that currently, private enterprises "refuse to grow", and in recent years have struggled to contribute about 50% of GDP and only 30% to the budget, which is not commensurate. In China, this business force has grown very strongly, contributing more than 50% of the budget and is the leading force in innovation, accounting for 70%.

Faced with these limitations, Dr. Can Van Luc proposed that there should be policies to support and promote the development of this business force, possibly reducing taxes for small and medium enterprises, the tax rates are 17% and 15% respectively. Currently, these enterprises still pay taxes like large enterprises at 20%. In particular, the State needs to soon issue a legal framework for new business models.

"Currently, our green economic model, circular economy, digital economy, testing mechanism... do not exist, so there are new economic models that businesses miss opportunities. We have just discussed with Ho Chi Minh City about Fintech for the International Finance Center but there is no testing mechanism to do it. As for the green portfolio, there is no issue yet, I am very impatient. That is a new legal framework for our new economic issues, which is still not available," Mr. Luc shared.

In order for the private economy to develop, Mr. Nguyen Quoc Ky - Chairman of Vietravel Group believes that not only policies need to be changed to provide practical and effective support for businesses, but also the mindset of those implementing the policies needs to be changed. At the same time, policies must follow a three-legged model so that different types of businesses can support each other to develop together.