(PLVN) - The Government has set very high growth targets and to realize this target, it is necessary to create a consistent aspiration. From there, there will be breakthrough reforms to create open space for Vietnamese enterprises to have the motivation to develop.
A consistent aspiration...
Economist, Dr. Nguyen Bich Lam - former General Director of the General Statistics Office, said that the Government is currently setting quite high development goals for the coming period and this is not easy to achieve. "But when we set expectations, we must turn those expectations into aspirations throughout from the highest leaders to the implementation team and the business community. All leaders at all levels, leaders - heads of all units must have aspirations. From those aspirations, we will find and propose solutions, overcome difficulties to realize expectations and from there develop Vietnam's economic strength" - Mr. Lam shared.
Vietnam currently has the advantage of developing from a major institutional revolution with the reorganization of the apparatus. It is an effort to reduce the number of contacts, reduce intermediaries, and reduce administrative procedures. Along with that, it is necessary to strengthen decentralization and delegation of authority, along with the allocation of power, improve the implementation capacity of subordinates, resolutely eliminate the mechanism of asking and giving, and increase administrative procedures. From this reform, the business environment will be more open, enterprises will benefit more and have space to develop their own internal strengths.
According to Mr. Lam, immediately, along with the institutional revolution, there needs to be specific policies to be able to disburse public investment capital in the short term. “In the past, there was no money, so we had to attract FDI by all means, but now we have money but we cannot spend it. That is a paradox that needs to be resolved and solved immediately. For example, there needs to be institutional reforms, very unique and different regulations so that the implementation team dares to do, dares to disburse, and is not afraid that when disbursing, they may fall into a state of violating the law. The fundamental problem is still the institution and still attaching responsibility to the leader, there must be someone responsible and at the same time really working for the job, for the rise of the country and the people,” said Mr. Lam.
In addition, Mr. Lam said that procedures that hinder socio-economic development activities or create avenues for corruption and harassment should be eliminated, such as the "kickback" in bidding, such as the unit price in projects using state budget money. There needs to be a mechanism so that those who implement can have the right to decide, the right to change in the public investment process, completely avoiding the current situation, each time the price changes, it has to be submitted up and down through several rounds, several times but still not decided... "Of course, along with this mechanism, there also needs to be a truly effective monitoring and post-audit mechanism" - the expert noted.
Create a mechanism to "nurture" businesses
Developing internal economic strength is having quite a lot of advantages. In the immediate future, there is Resolution 41-NQ/TW with orientations to form national enterprises, enterprises capable of leading each industry and field. Internal economic strength also starts from the business community. "In the business community, private enterprises are the main subjects, there must be policies and measures to improve the internal strength of enterprises, thereby making them the subjects of economic development" - said the former General Director of the General Statistics Office.
Associate Professor, Dr. Dinh Trong Thinh assessed: “Vietnam's internal strength is very large, from private enterprises to state-owned enterprises. The important issue is whether the State has a policy framework and mechanisms to take advantage of and promote that internal strength or not.”
In fact, according to Associate Professor Dr. Dinh Trong Thinh, if Vietnam wants to rise up and develop its internal strength, we must have purely Vietnamese products, which means the development of "leading" enterprises, including state-owned and private enterprises, so that they can create products with national brands and international influence.
Along with that, they also play the role of a nucleus connecting small and medium enterprises, from which they can have a "so-called production chain" but purely Vietnamese. It is from this purely Vietnamese value chain that their own internal strength is formed. This requires the creation of a mechanism so that large Vietnamese enterprises can gather small and medium enterprises, creating a purely Vietnamese production chain. And the mechanisms and policies must be specifically and clearly defined, and those priorities and incentives must be practical and consistent with the wishes of enterprises.
Associate Professor, Dr. Dinh Trong Thinh gave specific examples, such as the need to have regulations on how enterprises that are national brands should be prioritized in terms of taxes, access to capital, and the issue of issuing domestic and foreign bonds... "These incentives must be specific so that large enterprises can mobilize a large enough amount of capital to make typical products, then be able to gather enterprises around them as a production ecosystem, from there building a purely Vietnamese production chain. Only when we build purely Vietnamese chains can we stand on our own two feet and promote the internal strength of the Vietnamese economy" - Associate Professor, Dr. Thinh said.
According to many experts, the aspirations of Vietnamese enterprises are always very great, therefore, the "magic wand" of institutions and supervision of implementation is needed to realize the "aspiration to rise up". Dr. Nguyen Bich Lam affirmed that now is the time to strongly take action to create "a place to show off" for a team of truly knowledgeable, dedicated, and dedicated human resources for the benefit of the nation and to quickly recognize and eliminate individuals who take advantage of others, put personal interests in the process of building economic strength, put personal interests above, and trade off national interests.
Still need to take advantage of FDI resources
In the current period and in the coming years, the FDI sector is still an important subject of the Vietnamese economy. Therefore, it is necessary to step by step, resolutely bring Vietnamese enterprises into the production chain of this enterprise sector. This is also what we have set out for nearly 30 years of attracting FDI capital, but many opinions say that because the internal strength of Vietnamese enterprises is still weak, the opportunity to deeply enter the global production chain is still limited.
A report published in early December 2024 by the World Bank stated: “Very few domestic enterprises participate directly or indirectly in global value chains. In fact, this rate is much lower than in other countries and most worryingly, this rate is decreasing over time.” Accordingly, only 18% of enterprises are linked to global value chains in 2023, 17 percentage points lower than in 2009. Similarly, less than 40% of Vietnamese manufacturing and processing enterprises are linked to global value chains, also lower than in 2009, when 55% of manufacturing and processing enterprises were linked.
Dr. Nguyen Bich Lam commented that, in fact, Vietnam is still giving foreign investors great incentives. Therefore, it is necessary to review FDI projects and set specific conditions, for example, after how many years of technology transfer, how to use domestic materials to develop supporting industries. "We call for foreign investment but also need to set specific conditions. For example, in the semiconductor industry, at least we must require what technology, after so many years of technology transfer, how to use Vietnamese labor force, only in this way can Vietnamese enterprises have the opportunity to grow alongside FDI enterprises" - Dr. Lam suggested.
According to Dr. Lam, the Government's policy to support or attract FDI should aim to develop a close connection between the domestic enterprise sector and the FDI enterprise sector, while improving the competitiveness of the domestic enterprise sector. This is also a recommendation of the World Bank, which believes that the policy of connecting multinational enterprises with domestic enterprises is one of the ways to enhance the internal strength of Vietnamese enterprises, thereby enhancing the value of Vietnam in the global supply chain. From there, the internal strength of Vietnamese enterprises will be consolidated and gradually master the game at "home".
Bringing businesses together into an ecosystem
Associate Professor, Dr. Dinh Trong Thinh.
“There should be incentives for private enterprises. These incentives must be specific so that large enterprises can mobilize enough capital to make typical products, then be able to gather enterprises around them as a production ecosystem, from which we can build a purely Vietnamese production chain. Only when we build purely Vietnamese chains can we stand on our own two feet and promote the internal strength of the Vietnamese economy” - Associate Professor, Dr. Dinh Trong Thinh.
There is a policy to implement commitments to FDI enterprises.
Dr. Nguyen Bich Lam.
“There must be specific policies to be able to implement the commitments between FDI investors and domestic enterprises in technology transfer and participation in their production chains, even though when committing to invest, they provide support but it is really low. In fact, when looking at the projects and investment proposals, we can see that the commitments are clearly stated, but there are no constraints to implement these commitments” - economic expert, Dr. Nguyen Bich Lam (former General Director of the General Statistics Office).
Source: https://baophapluat.vn/thoi-co-chin-muoi-de-phat-trien-noi-luc-nen-kinh-te-bai-3-nhung-khuyen-nghi-nang-tam-doanh-nghiep-viet-post540387.html
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