Don't wait for problems to arise before you solve them.

Experts and businesses believe that the state and private enterprises should be viewed as a relationship between businesses and customers, at which point the state will clearly guide what businesses will need, expect and will do.

Private economic development: Don't wait for problems to arise before solving them.

Experts and businesses believe that the state and private enterprises should be viewed as a relationship between businesses and customers, at which point the state will clearly guide what businesses will need, expect and will do.

The private sector is "inferior" in accessing resources

“A private enterprise is also a shareholder, a state-owned enterprise is also a shareholder. When they invest money to do business, they all contribute to the state and build the country. Therefore, they want to be treated equally,” said Mr. Phan Dinh Tue, Chairman of the Board of Directors of Bamboo Airways at the seminar "Solutions to promote private economic development" organized by Nguoi Lao Dong Newspaper on March 20.

The private economy has been contributing about 40% of GDP and more than 30% of total state budget revenue (according to 2023 data). However, the majority of private enterprises are still small and medium-sized enterprises, facing many barriers in expanding their scale and improving their international competitiveness, lacking leading enterprises with great influence in the region and globally.

Mr. Le Tri Thong, General Director of Phu Nhuan Jewelry Joint Stock Company (PNJ), said that in the support policies to create a common ground for accessing resources such as capital, resources, locations, etc. among the three components, the private economy is "inferior" to foreign direct investment (FDI) enterprises and state-owned enterprises.

"Just having a degree is enough to unleash resources for the private economy," said Mr. Thong.

Mr. Phan Dinh Tue, Chairman of the Board of Directors of Bamboo Airways . Photo: Nguoi Lao Dong Newspaper

Sharing the same view, Professor - Dr. Vu Minh Khuong, Lecturer at the Lee Kuan Yew School of Public Policy (National University of Singapore), the private economy in particular and economic sectors in general are facing many institutional limitations, causing serious bottlenecks.

“Many current regulations seem to allow private enterprises to exist, but do not create conditions for development, making it difficult for the economy to make a breakthrough,” Professor - Dr. Vu Minh Khuong shared .

At a working session with the Central Policy and Strategy Committee on March 7, General Secretary To Lam emphasized the importance of changing mindsets, eliminating prejudices about the private economy, and improving the business environment to promote sustainable development of this sector. The General Secretary affirmed that the private economy is the key for Vietnam to achieve sustainable economic growth and improve its position in the international arena.

When the Party and Government issued a policy to develop the private economy, Ms. Ly Kim Chi, Chairwoman of the Ho Chi Minh City Food and Foodstuff Association, said: "I feel more confident, more daring to develop and believe that the future ahead will be very bright for the business community."

However, for the policy to be truly effective, businesses need to clearly feel the actual support from the authorities at all levels, not just on paper. Recently, the Prime Minister directed to cut 30% of administrative procedures, but in reality, in the drafts of some ministries and branches, there are still regulations that increase costs and procedures for businesses.

Just last week, six industry associations representing tens of thousands of businesses petitioned the Prime Minister to remove a cumbersome and costly administrative procedure for businesses. If ministries and sectors continue to maintain the mindset of "if you can't manage it, ban it", they will not be able to remove barriers to economic development.

Find the right path, identify strategic spearheads

For the private economy to truly be the key to Vietnam achieving sustainable economic growth, according to Mr. Phan Dinh Tue, Chairman of Bamboo Airways, it is necessary to view the relationship between the state and private enterprises as the relationship between enterprises and customers.

Accordingly, if a business wants to sell its products, it must think in terms of what customers need and like and must find ways to meet those needs. Similarly, the government, especially the Central Policy Strategy Committee, needs to clearly orient what businesses will need, expect and will do.

“For areas that the state wants to prioritize and promote, there needs to be appropriate support mechanisms, policies and interest rates. On the contrary, if we wait until problems arise before resolving them, it will be very difficult and costly,” said Mr. Tue.

Taking the aviation industry as an example, Mr. Tue said that in order to develop sustainably and effectively, it is necessary to build an accompanying service ecosystem, including maintenance, servicing, catering, ground handling, etc. To do this, state-owned enterprises and private enterprises need to sit on equal footing, and have fair and equal access to policies.

Experts say that if the private economy plays a leading role, development policies and strategies must also focus on this sector. Photo: Nguoi Lao Dong Newspaper

Meanwhile, Mr. Le Tri Thong, General Director of PNJ, said that it is necessary to find the right path, identify strategic spearheads and make strategic bets.

Institutionally, the state needs to expand the road for businesses, increase investment sources, promote capital flows, and at the same time improve the qualifications of the “drivers”, that is, private enterprises. It is necessary to change from “national highways” to “highways” so that private enterprises can break through and contribute more to the economy.

According to Mr. Thong, if we want the private business sector to develop more strongly, there needs to be advanced training programs to help private businesses reach new heights. Because even large Vietnamese businesses are currently only at the world average level.

“Vietnam can build joint investment funds between the public and private sectors,” he said, explaining that public-private implementation should be carried out according to market mechanisms, with investment decisions based on market factors. In the era of development, the connection between enterprises and policies, and between enterprises and enterprises is very important.

According to Dr. Nguyen Quoc Viet, a public policy expert, the state needs to have a systematic plan, clearly identifying key areas and projects that need priority investment, with the participation of both the public and private sectors.

The focus of the private economic development policy is that the state needs to select priority areas and projects for development in each phase, in accordance with the ability to mobilize and allocate resources. Placing orders for enterprises to implement key projects must be done on the basis of clear, public selection criteria and with specific scope limits.

The selected enterprises must be those that have or have the potential to implement key projects and fields, have the ability to lead development trends and create positive spillover effects to other industries and enterprises. This spillover will promote entrepreneurial spirit in the private sector, arousing sustainable development momentum for the entire economy.

The political determination of senior leaders is very clear. However, for these policies to be put into practice, there needs to be innovative models of a breakthrough nature from the local level, even ready to "break the rules" within the legal framework to build pilot mechanisms for private enterprises. The proactive participation of enterprises from local to central levels will be the decisive factor for the success of the private economic development strategy in the new period.

Source: https://baodautu.vn/phat-trien-kinh-te-tu-nhan-khong-nen-cho-phat-sinh-vuong-mac-roi-moi-go-d256805.html