Untying the Lock for the Private Economy to Breakthrough: Fueling the Aspiration to Bring the Country into a New Era

The private economic sector is expecting a new resolution to remove all bottlenecks so that it can rise up with the country.

PHOTO: PHAM HUNG

With a good environment, Vietnamese private enterprises will grow strongly in the next 5 years.

From the US-China trade war to Covid-19 and now when the policies under President Donald Trump have continuously changed, causing the world market to fluctuate, one of the most important lessons is to rely on internal strength. When the world is in turmoil, internal strength is an extremely important deciding factor. Whether "Britain" can still maintain its export market, can participate in the global supply chain or not, can access technology or not... all depend on internal strength. We cannot rely on any foreign partner to lead our country forward. Even the desire to invest in high technology, semiconductors... if our country does not have enough conditions, no one will choose to invest.

Although Vietnam is always considered a bright spot in attracting FDI, competition is very high and internal strength is the decisive factor. In terms of internal strength, it is determined that state-owned enterprises (SOEs) only invest in essential areas that private enterprises (PIEs) have not been able to do, play the role of the main source of supply and must focus on doing it well. For example, with electricity, it is necessary to digest the renewable energy sources of many invested PIEs. The rest, the private enterprise sector will be the main driving force that needs to be strongly promoted, becoming a pillar for the national internal strength. This change by General Secretary To Lam is truly a revolutionary change for Vietnam's private enterprises. 40 years after the renovation, 50 years after the country's unification and 80 years after gaining independence, the private economic sector has now been truly recognized for its role. As long as there is a good environment and a fast-moving apparatus, Vietnamese private enterprises can certainly develop rapidly and strongly, surpassing the country in the next 5 years.

Economist Pham Chi Lan

PHOTO: NVCC

Economist Pham Chi Lan

The private economy must become the backbone, competing strongly in the world.

General Secretary To Lam's assertion that the private enterprise sector is the most important driving force for economic development has created a new turning point, breaking prejudices, dogmas and taboos in the view of the private economy (PE). In 1986, when Vietnam introduced the private economy into the multi-sector economy, the domestic economy immediately revived. Right from the beginning, the Vietnamese private enterprise force did what I considered "earth-shattering" things - bringing the economy out of crisis in an extremely short time, despite being in a low position and not being respected. Only now has the role of the private economic sector been truly recognized as the most important driving force. This event has special significance, is an important fulcrum, creating confidence in Vietnam's choice of a market economy for more than 40 years now as truly correct and promising. In the general mission of the market economy, the private economy is the fundamental and decisive force, and at the same time creates the global economic system.

Therefore, private enterprises must be supported, facilitated, and guided to become the backbones and "faces" of strong competition in the world. Here, the supporting and creative role of the state is extremely important. To do this, we need to liberate our viewpoints, change from thinking to regimes and policies; thereby helping private enterprises truly become the lever of a prosperous society. We really need a strategy to develop the Vietnamese business force, which requires enterprises to have new capacities and qualities, especially creativity. The strategy for developing private enterprises does not stop at solving licensing issues, but must create a comprehensive development strategy. Only then can the country catch up with the development momentum and enter a new orbit.

Associate Professor, Dr. Tran Dinh Thien

PHOTO: NVCC

Associate Professor, Dr. Tran Dinh Thien , former Director of Vietnam Economic Institute

Hope the policies are specified in a separate law for KTTN

The appeal and strong, decisive actions of General Secretary To Lam and the Government have encouraged and created strong confidence for the private enterprise community, fueling the aspiration to contribute to economic development, bringing the country to prosperity. However, there are still many concerns because there are still bottlenecks that are hindering the development of the private economic sector. The Government is building a new resolution for the private enterprise sector, we expect the resolution to have more comprehensive and specific measures. In particular, the resolution needs to have policies to encourage private enterprises to innovate technology and upgrade industry; ensure the right to participate in setting standards and using data sources of private enterprises; support private enterprises to participate in strategic areas; strengthen the protection of intellectual property rights; create an equal and transparent business environment.

Policies to encourage the development of private enterprises need to be linked to the scale of enterprises and sectors participating. For example, priority should be given to supporting small and medium enterprises, start-ups, and innovation in terms of capital, land, taxes, etc. Prioritizing technology, tourism, clean agriculture, green real estate, clean and renewable energy, etc. Finally, in my opinion, we need to build a cooperation mechanism between private enterprises and universities or research institutes to promote the transformation of scientific and technological achievements and accelerate the commercialization of new technologies and new products.

Mrs. Luu Thi Thanh Mau

PHOTO: NVCC

MSc. Luu Thi Thanh Mau , Vice President and General Secretary of Ho Chi Minh City Real Estate Association

Large private enterprises should be considered "eagles" and supported to reach international level.

We hope that the new resolution on private enterprises will specify clear, practical and strong policies to solve the difficulties and problems that enterprises are facing. In particular, administrative reform should be considered a top priority. Enterprises expect that the new resolution will continue to strongly promote the reduction of unnecessary procedures, promote the application of digital technology to shorten the processing time for investment licensing procedures, business licenses, taxes, customs, etc. In particular, localities need to publicize and make transparent the entire administrative process and be clearly accountable to enterprises and society. At the same time, we hope that the resolution will highlight policies to support leading private enterprises through tax and credit incentives, and access to large national investment projects. Large Vietnamese private enterprises such as Vingroup, THACO, FPT, etc. need to be considered "eagles", given opportunities and conditions to develop internationally, lead and create a ripple effect in the Vietnamese business community.

At the same time, we need to build startup support centers in large cities with the role of "one-stop-shop" providing full consulting, training, initial investment and international market connection services. Currently, access to capital is the biggest difficulty for many businesses, especially young businesses, small and medium-sized start-ups. We propose that the state establish special credit guarantee funds for young businesses and technology and innovation start-ups. These funds will guarantee loans without collateral or with flexible collateral, low preferential interest rates, quick and clear procedures to stimulate the spirit of entrepreneurship and innovation, helping small and medium-sized businesses improve their internal strength, and join forces with the big "eagles".