In recent years, the private economic sector has made important developments, contributing over 50% of GDP and about 30% of state budget revenue.
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| The private sector is one of the three main pillars of the economy to promote growth and sustainable development. In the photo: Thaco Mazda factory of Truong Hai Auto Corporation. (Source: VNA) |
The role of the private sector
The private sector is actually made up of many different entities, from small businesses to large corporations. They are all different and each has its own role to play in the economy.
This sector basically comprises of: Small and Medium Enterprises (SMEs), corporations, multinational companies (MNCs), non-profit organizations (privately owned), startups and technology companies.
The private sector has a profound impact in driving technological advances and plays a vital role in narrowing the infrastructure and service gap.
The private sector complements the public sector through efficiency, innovation and competition, while also contributing to global trade through active participation in various sectors and creating jobs and improving living standards.
In addition, this sector is also a growth engine, promoting innovation and contributing significantly to the national GDP.
World trends
China is one of the countries that focuses on the private sector. The private economy contributes more than 60% of GDP, creates 80% of urban jobs and more than 70% of inventions and innovations in the country's economy.
Private enterprises account for the majority of industries such as manufacturing, services, and especially high technology. In 1988, the Chinese government amended the constitution to strengthen the protection of the legitimate rights and interests of private enterprises.
The 15th National Congress of the Communist Party of China in 1997 recognized the private economy as an important part of the socialist market economy.
During the periods of 2002-2007 and 2013-2018, China introduced policies such as amending regulations, loosening the market to create conditions for the development of small and medium-sized private enterprises; promoting the internationalization of private enterprises, gradually eliminating the lack of transparent treatment in enterprises; promoting market access systems, property rights systems and trade.
Thanks to flexible policies, by 2021, the number of newly established private enterprises had reached 8.525 million, an increase of 11.7% compared to 2020.
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| South Korea identifies the private sector as the main engine of growth and innovation. (Source: Kaiser Rangwala) |
For South Korea, the private sector has played an important role in supporting the country's economic growth. In the 1960s, under the leadership of President Park Chung-hee, South Korea rapidly entered a period of industrialization.
The country has implemented many strategic policies to encourage the development of private enterprises, especially chaebols (family conglomerates) such as Samsung, Hyundai, and LG.
The Korean government has issued policies to support the private economy, including providing preferential loans; protecting domestic industries; focusing on developing key industries such as manufacturing, chemicals and steel; creating favorable conditions for private enterprises to expand their operations worldwide; issuing new regulations on corporate governance, encouraging the development of small and medium-sized enterprises, aiming to diversify the economy, instead of relying solely on chaebols.
The country also identifies the private economy as the main driving force for growth and innovation in the international arena in high-tech industries, artificial intelligence, biotechnology, green energy, and innovation.
Party's Viewpoint
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| Through each congress, the private economic sector has always been focused on and given favorable conditions for development. In photo: The 13th National Party Congress. (Source: VNA) |
Through many congresses, our Party has made changes and new perceptions about the concept of the private economy. In the Resolution of the 6th Central Conference, Session VI, the Party affirmed that "The private economy is developed without any restrictions on location, scale, or industry that is not prohibited by law."
In Resolution of the 5th Central Conference, Session IX (2002), the Party determined that "The private economy is an important component of the national economy, private economic development is a long-term strategic issue in the development of a multi-sector socialist-oriented economy...".
At the 11th Congress (2011), the role of the private economy was raised to a new level with the inclusion in the Resolution of the content on "perfecting mechanisms and policies to strongly develop the private economy to become one of the driving forces of the economy. Strongly develop private economic forms in most economic sectors and fields according to planning and legal regulations".
Inheriting from previous congresses, the 13th National Party Congress affirmed that the strong development of the private economic sector in terms of quantity, quality, efficiency, and sustainability "has truly become an important driving force in economic development. Removing all barriers and prejudices, creating all favorable conditions for the development of the private economy...".
Need to remove bottlenecks for development
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| General Secretary To Lam gave a directive speech at a working session with the Central Policy and Strategy Committee on private economic development on March 7. (Source: VGP) |
At the working session with the Central Policy and Strategy Committee on March 7, General Secretary To Lam directed that there must be a clear strategy for developing the private economy.
The General Secretary emphasized that "regarding the development of the private economy in our country today, there are many bottlenecks, many goals have not been achieved, it is necessary to review where the problems are, and how to solve the implementation requirements."
Although the private economic sector has made important developments in recent years, contributing over 50% of GDP, about 30% of state budget revenue, attracting about 85% of the workforce and being the main growth driver of the economy.
However, the private economy is still facing many major barriers and obstacles, causing frustration and deeply affecting the promotion of the role, position and ability to contribute to the development of our country's economy. This can be considered the time when it is necessary to remove barriers and awaken the strength of this important economic sector.
On March 15, the Steering Committee for the development of the private economic project, headed by the Prime Minister according to Decision 526/QD-TTg dated March 6 of the Government, held its first meeting.
Accordingly, the Steering Committee affirmed that "the private economy is the most important driving force of the economy", and set a goal of striving to have 2 million private enterprises and 1,000 large enterprises playing a leading and pioneering role in various fields by 2030.
Solutions to create new impulses
It is time to change and create new momentum to promote the development of the private economic sector. To do this, timely and comprehensive solutions, including "acceleration", are needed.
Accordingly, it is necessary to closely follow the open directions of the General Secretary, which are: We must change our thinking and awareness, and affirm that the private economy is the most important driving force, especially for growth.
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| Vietnam has a lot of room to develop the private economic sector. (Photo: Van Trung) |
Besides, there must be a clear strategy for the development of the private economic sector in accordance with the current situation of the economy and the country's geo-economic and geopolitical space.
In addition, it is necessary to focus on improving infrastructure and human resources to serve common development; create breakthroughs to remove institutional bottlenecks, quickly improve the investment and business environment, remove barriers and obstacles to business development; focus on building and effectively implementing national programs to promote the development of this area; continue to innovate and strengthen the leadership role of the Party and the management role of the State.
In addition, from good models of other countries, it is possible to consider and propose good solutions to encourage and promote the private economic sector, such as: promptly introducing preferential policies for private enterprises such as tax reduction, financial support, investment, personnel training, supporting the business establishment process, reducing the dependence of the private economic sector on foreign investment flows; reducing administrative procedures (reducing administrative procedures helps private enterprises save time and money); changing perceptions of the private economy (supporting and encouraging the development of this economy) and improving the effectiveness of state management.
Along with breakthroughs in science, technology, innovation, digital transformation, streamlining the political system at all levels of government, private economic development will create new momentum to contribute to bringing the country into a new era of stability and sustainability.
Source: https://baoquocte.vn/phat-trien-kinh-te-tu-nhan-dong-luc-dua-viet-nam-buoc-vao-ky-nguyen-moi-308510.html
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