In all high-income developed countries in the world, domestic private enterprises play the most important role in creating wealth for the whole society and employment for the people.
Processing bananas in Long An province for export - Photo: QUANG DINH
For Vietnam to achieve the goal of becoming a high-income country by 2045, further promoting the role of domestic private enterprises is necessary.
Based on the most recent and complete data (2022), of the three types of enterprises, private enterprises (non-state enterprises according to official classification) play the most important role in all three criteria of creating jobs, contributing to the state budget and generating GDP. However, the informal sector is still the largest and needs to be reduced.
Regarding job creation, enterprises nationwide created 15.2 million jobs, accounting for nearly 30% of the country's total employment. Of which, private enterprises accounted for 17.9%, FDI enterprises accounted for 10.4% and state-owned enterprises accounted for 2%.
Regarding contributions to the state budget, revenue through enterprises nationwide accounts for 44.2% of total budget revenue according to the 2022 settlement.
Of which 16.9% comes from private enterprises, 13.9% from state-owned enterprises, and 13.4% from FDI enterprises.
Regarding GDP, estimated by the income method (GDP = income of workers + profit of business owners + interest paid for capital use + land rent and other assets + taxes paid to the State), it is very likely that private enterprises create a GDP level significantly higher than the 20.5% of FDI enterprises and the 10% or so of state-owned enterprises.
GDP alone calculated from labor income + pre-tax profit + corporate VAT paid by private enterprises is equal to 18.4% of GDP, compared to 14.7% of FDI enterprises and 6.4% of state-owned enterprises.
Moreover, the total fixed assets of private enterprises are also much higher than the other two groups.
Therefore, the contribution to GDP from other sources of private enterprises can hardly be lower than 5.8% of GDP of FDI enterprises.
The important role of private enterprises is undeniable. However, there are currently at least two problems in the Vietnamese economy that need to change.
Firstly , the position of enterprises in general, and private enterprises in particular, in the economy is still quite modest, especially in terms of job creation.
About 1 million enterprises create 30% of jobs for society, while more than 60% of the workforce is still in the informal sector. This ratio needs to be reversed.
Second , Vietnam does not have many large enterprises with global competitiveness. The Fortune 500 list of Southeast Asian countries shows this. We only have 63 enterprises, accounting for 12.6%, lower than the population ratio.
If measured by market value, Vietnam’s size is much more modest. The reason why many domestic private enterprises cannot grow is because of informal costs and other conditions, as Professor David Dapice has pointed out, that medium-sized enterprises bear the heaviest burden.
In addition, the ability to connect and coordinate between businesses is also a reason why Vietnamese businesses cannot go far.
To enhance the position and role of domestic private enterprises, Vietnam can refer to the experience of other economies, especially in the region.
Taiwan has adopted the linkage model of SME chains with the active role of associations and intermediary organizations.
They knew together to go far. Korea developed large private enterprises with proactive state (industrial policy) programs.
China, like the other two and many other economies, has policies that encourage international competition. The role of the state in creating the playing field and conditions for domestic businesses to grow is crucial.
In order to better promote the role of private enterprises, the first thing to do is to create a level playing field among the three components.
In fact, domestic private enterprises are often at a disadvantage compared to state-owned enterprises and FDI enterprises.
The next step is to encourage domestic enterprises to pioneer in important areas and improve international competitiveness.
International cooperation and competition, along with proactive policies of the State, are extremely important. Finally, the role of the State in supporting business development needs to be promoted and the making of difficulties and extortion of businesses needs to be minimized.
This equality not only shows the proper appreciation of the role of private enterprises but also demonstrates a healthy, transparent and fair economy for all components.
Source: https://tuoitre.vn/san-choi-binh-dang-cho-doanh-nghiep-tu-nhan-20250301080735477.htm
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