The promise of leadership from the leading birds Vingroup, Hoa Phat, Thaco...

Private enterprises participate in major national projects

Recently, General Secretary To Lam wrote an article titled "Private Economic Development - Leverage for a Prosperous Vietnam". The General Secretary especially emphasized that in order to achieve the common vision of the country, the private economy also needs to more clearly define its mission and vision.

The private economy must be the pioneering force in the new era, successfully implementing the cause of industrialization and modernization of the economy, enhancing national competitiveness, having social responsibility, contributing to improving people's lives, participating in building a civilized and modern society and contributing to building a dynamic and internationally integrated Vietnam.

One of the solutions proposed by the General Secretary is that in addition to strongly consolidating the state-owned enterprise sector, especially state-owned economic groups; it is necessary to prioritize the building of private economic groups of regional and global stature, actively support small and medium-sized enterprises, and at the same time support the household economy and cooperative economy; encourage private enterprises to participate in the country's strategic sectors: practice the view that the private economy plays an important role in the socialist-oriented market economic structure, eliminate the ideology of "Public over private" and the "monopoly" of state-owned enterprises in a number of sectors.

Form and develop large, strong private economic groups with international competitiveness, with the mission of leading and supporting other domestic enterprises to participate deeply in the global value chain.

In order for the private economy to not only grow in scale but also contribute positively to the country's long-term development, it is necessary to encourage private enterprises to participate in strategic areas, develop important infrastructure, high technology, spearhead industries and energy security.

Expand opportunities for private enterprises in important national projects, join the State in a number of strategic industries and special fields, and enhance research and technological innovation capacity.

The State has a policy mechanism to assign orders to the private economic sector to participate in a number of key, important national projects, urgent tasks such as building high-speed railways, urban railways, energy infrastructure, digital infrastructure, defense industry, security...

In early February, Prime Minister Pham Minh Chinh also chaired a meeting of the Government Standing Committee to meet with businesses on tasks and solutions for private enterprises to accelerate, make breakthroughs, and contribute to the country's rapid and sustainable development in the new era.

Attending this conference were representatives of leaders of ministries, branches, representatives of the Vietnam Federation of Commerce and Industry, the Association of Small and Medium Enterprises, 26 large corporations and enterprises of the state and private sector.

General Secretary and President To Lam met with a delegation of outstanding businessmen from the Vietnam Federation of Commerce and Industry (VCCI) and the Vietnam Private Entrepreneurs Association on the occasion of the 20th anniversary of Vietnamese Entrepreneurs Day in November 2024 (Photo: Nhan Dan).

The promise of the leading birds

Recently, at the 16th meeting of the State Steering Committee for important national projects and works, Prime Minister Pham Minh Chinh requested Ho Chi Minh City to urgently study and assign tasks to enterprises to deploy railways (subway or elevated) connecting the city to Long Thanh airport, in the spirit of harmonious benefits, shared risks, and harmonious interests between the State, people and enterprises.

Notably, regarding railway projects, a number of enterprises have been assigned tasks. Vingroup Corporation was assigned to deploy a metro line from Ho Chi Minh City to Can Gio, worth more than 4 billion USD.

At the same time, the Prime Minister requested that Ho Chi Minh City urgently study and assign tasks to enterprises to deploy a railway (subway or elevated train) connecting the city to Long Thanh airport.

During the meeting with the Prime Minister, Mr. Nguyen Viet Quang, General Director of Vingroup Corporation, said that with the awareness that private enterprises are the driving force of the economy, in recent years Vingroup has continuously made efforts to invest heavily in strategic areas such as energy infrastructure, green economy, digital economy, and supporting industries to contribute to realizing the vision of sustainable development.

The Group proposed that there should be a more open policy mechanism to invite domestic and foreign investors to participate in the electricity business, contributing to ensuring sufficient output and reducing electricity costs.

At the same time, promoting investment in national technical infrastructure, this unit recommends perfecting the legal framework and promoting the application of investment forms under the public-private partnership method such as build-operate-transfer (BOT), build-own-operate (BOO), build-transfer (BT).

In the context of increasingly fierce international competition, Vingroup is committed to playing the role of one of the pioneering enterprises promoting innovation and sustainable development of the country.

Vingroup Corporation believes that, with the companionship and support of the Government, ministries, departments, and agencies, Vietnamese private enterprises have the opportunity to reach out and contribute to building a prosperous, green, and sustainable economy.

Representatives of Thaco, Vingroup, and Hoa Phat at a working session with the Prime Minister in February (Photo: Chinhphu.vn).

With Truong Hai (Thaco), Prime Minister Pham Minh Chinh suggested that the group participate in research, technology transfer, and production of high-speed railway cars, moving towards research, technology transfer, and production of locomotives.

Meeting with the Prime Minister, Mr. Tran Ba ​​Duong - Chairman of Thaco - said that the group will focus on participating in urban railway construction, especially train cars and steel components. Chairman of Thaco promised that there will be a reasonable technology transfer, on-site production organization to reduce costs and this product will have the participation of Vietnamese enterprises, responsible for quality and cost.

Also at this meeting, Mr. Tran Dinh Long, Chairman of the Board of Directors of Hoa Phat Group Joint Stock Company, committed to the Prime Minister to develop at least 15% in the period 2025 to 2030.

In the 2025-2030 plan, public investment capital is very large, especially the Hanoi-Ho Chi Minh City urban railway project, the Lao Cai-Hanoi-Hai Phong railway project. This is a great opportunity for businesses. Mr. Tran Dinh Long said that in the near future, Hoa Phat can invest in a rail manufacturing factory, investing 10,000 billion VND.

However, this is a very special product, if not used for the project, we do not know who to sell it to. Hoa Phat Group really hopes to have a document like the Resolution so that businesses can feel secure in investing and producing products for the project.

Private enterprises need to be supported

Thus, a number of large enterprises have been assigned specific tasks: Vietnam Railway Corporation undertakes operations, Hoa Phat Group produces rails, Truong Hai Group manufactures train cars, and Vingroup Group implements the metro project from Ho Chi Minh City to Can Gio.

Mr. Nguyen Ngoc Hoa, Chairman of the Ho Chi Minh City Business Association (HUBA), assessed that Vietnamese private enterprises have been affirming their important role in the national economy. With about one million enterprises and more than 5 million individual business households, compared to international standards, Vietnamese private enterprises still have many limitations in terms of scale, management capacity, technology as well as access to capital.

But compared to 1-2 decades ago, Vietnamese private enterprises have made great strides, contributing about 51% of GDP, more than 30% of the state budget, creating more than 40 million jobs, accounting for more than 82% of the total workforce in the economy and contributing nearly 60% of total social investment capital.

This shows that the potential and dynamism of private enterprises are growing. If we know how to exploit them and in a favorable business environment, barriers are removed, private enterprises will quickly rise and become the most important pillar of the economy.

Mr. Nguyen Ngoc Hoa, Chairman of Ho Chi Minh City Business Association (HUBA) and Mr. Nguyen Van Than - Chairman of Vietnam Association of Small and Medium Enterprises (VINASME) (Photo: IT).

Private enterprises have also accumulated experience through many generations of entrepreneurs, with solidarity, cohesion, and gathering by business and industry associations. In particular, Vietnamese entrepreneurs are very diligent, hard-working, eager to learn, and always have the spirit to strive for success.

However, there are also many major challenges that are hindering the development of private enterprises. Specifically, our country's legal system still has many shortcomings and overlaps, the business environment has many obstacles, and administrative procedures are complicated. Many private enterprises feel that they do not have full freedom of business, and some are concerned about the criminalization of civil and economic relations.

On the other hand, private enterprises have not been given priority in accessing resources such as land and capital; and have not enjoyed full preferential and support policies like state-owned enterprises or foreign-invested enterprises (FDI).

Private enterprises are also lacking high-quality labor, while digital transformation and high-tech manufacturing require skilled human resources, but private enterprises still face difficulties in training and recruiting. Not only that, Vietnamese private enterprises also face fierce competition from foreign enterprises and multinational corporations.

HUBA representatives expect that with the General Secretary's decisive reform, strong leadership and vision, the new Resolution will create a more open mechanism, removing bottlenecks such as: Equality in access to capital, land, technology, and markets; reducing administrative procedures, creating a transparent and favorable business environment.

Mr. Nguyen Van Than - Chairman of the Association of Small and Medium Enterprises (VINASME) - said that private enterprises play an important role in the process of building and developing the country.

Recently, the Prime Minister assigned specific tasks to Vingroup, Thaco, and Hoa Phat to build a metro line from Ho Chi Minh City to Can Gio, demonstrating his trust and creating favorable conditions for the units. These are all large enterprises with enough potential, resources, and expertise to implement key national projects.

"Domestic private enterprises are always ready to contribute and build key projects. They not only accept to have jobs but also demonstrate the responsibility, qualifications and potential of the enterprise. With future key projects, the Government can also directly assign them to large enterprises to implement without going through bidding," he said.

He said that the State only needs to ensure sufficient capital for businesses. At the same time, site clearance needs to be carried out quickly and handed over to businesses on time.

Associate Professor Dr. Tran Hoang Ngan also expressed that the Prime Minister's "ordering" of enterprises shows complete trust in private enterprises. That trust is not built in a day but over a period of time. Private enterprises can grow stronger but are still at a modest level, so this sector needs to be "supported".

Mr. Ngan also stated that Vietnam is moving towards an era of national development, wanting to be self-reliant and self-reliant in its economy. To achieve this, the country cannot rely on foreign enterprises but needs to focus on the private economic sector. He expressed his confidence in the country entering a new era with high incomes and a prosperous and happy life.

Associate Professor, Dr. Tran Hoang Ngan, Associate Professor, Dr. Tran Dinh Thien and Dr. Dinh The Hien (Photo: IT).

Associate Professor, Dr. Tran Dinh Thien affirmed that this is an unusual time, with high excitement. From not daring to say much, speaking timidly, shyly, whispering, not daring to be proud of the private economy and private enterprises, now the call is resounding unusually, confident that the future is coming.

According to Mr. Thien, the General Secretary’s message and the Prime Minister’s call have affirmed that the private economic sector is an important driving force, breaking down prejudices, dogmas, and taboos about stances and viewpoints of many years ago. The role of the private economic sector has been identified, helping to escape the fear and obsession that have haunted us for decades.

Mr. Thien also said that in a developed economy, the private economy, especially domestic enterprises, must contribute 60-70%, even 80% of GDP. Previously, this sector was still inferior to foreign-invested enterprises (FDI), but now it has improved. He emphasized that private enterprises are the foundation for national development, creating jobs and income for workers.

Dr. Dinh The Hien assessed that the State's assignment of key projects to private enterprises demonstrates its trust in the units. Assigning such projects to private enterprises helps enterprises promote their capacity and affirm their position in the world. From there, Vietnamese enterprises can quickly mature and make progress in the international market.

According to him, awarding large contracts to private enterprises will create a healthy competitive environment. From there, domestic enterprises must focus on improving their qualifications and expertise to participate in bidding.