Prime Minister: Small and medium enterprises overcome their own limits to rise up

Việt NamViệt Nam27/02/2025

Prime Minister Pham Minh Chinh asked small and medium enterprises to develop rapidly and sustainably with the country, growing 8% by 2025.

The Prime Minister chairs the Government Standing Committee meeting to work with small and medium-sized enterprises. (Photo: Duong Giang/VNA)

On the afternoon of February 27, concluding the Government Standing Committee Conference with Vietnamese small and medium-sized enterprises to identify obstacles, remove difficulties, and propose tasks and solutions for enterprises and the country to develop quickly and sustainably, Prime Minister Pham Minh Chinh noted that authorities at all levels must create, listen, absorb, remove difficulties and obstacles, and encourage and motivate enterprises to develop.

According to the Ministry of Planning and Investment, by December 31, 2024, there will be more than 940,000 operating enterprises nationwide.

Small and medium-sized enterprises account for nearly 98% of the total number of enterprises operating in the economy; attract 5.5 million workers; have a total capital of 16.6 million billion VND, accounting for less than 30% of the total capital for production and business activities of the entire enterprise sector.

Over the years, our Party and State have always paid attention to, encouraged, and allocated priority resources for the development of small and medium-sized enterprises, including Resolution No. 41-NQ/TW on building and promoting the role of Vietnamese entrepreneurs in the new era, promulgating the Law on Support for Small and Medium Enterprises...; having policies for small and medium-sized enterprises to access credit, tax policies, production premises, market expansion, human resource development... to help the small and medium-sized enterprise community restore and increase confidence, increase investment, and expand production and business.

Small and medium enterprises are present in most industries, production and business sectors; they play an important role in job creation, poverty reduction, improving workers' income, contributing to the state budget and economic growth. However, the small and medium enterprise community still faces many difficulties and challenges, and there are many barriers and limitations to substantial and sustainable development.

Ms. Pham Thi Nhung, Deputy General Director of Vietnam Prosperity Joint Stock Commercial Bank, speaks. (Photo: Duong Giang/VNA)

At the conference, the small and medium-sized enterprise community expressed their determination to work with the whole country to achieve the growth target of 8% in 2025 and double-digit growth in the following years.

Enterprises also discussed frankly, pointed out bottlenecks and bottlenecks that need to be removed, and proposed tasks and solutions for enterprises to accelerate and break through with the country's development.

Chairman of the Association of Small and Medium Enterprises Nguyen Van Than proposed that the Government should stipulate that enterprises participating in large-scale, national key projects reserve a portion of the project value for capable small and medium enterprises; have preferential policies based on the localization rate and gradually increase according to the localization level of products; reduce corporate income tax for small and medium enterprises; credit institutions lend to enterprises with mortgages based on future assets; reduce administrative procedures and compliance costs; eliminate unnecessary business conditions; do not criminalize economic and civil relations; and completely handle backlogged projects...

Mr. Do Quang Hien, Executive Chairman of T&T Group, speaks. (Photo: Duong Giang/VNA)

Mr. Do Quang Hien - Founder and Executive Chairman of T&T Group - said that the number of enterprises and the ratio of enterprises to population in Vietnam is low. Therefore, to increase the number, there needs to be policies to guide, support, encourage and sponsor creative startups, especially among students; support small and medium enterprises to participate in the supply chain of large enterprises and FDI enterprises; have financial policies, taking into account the level of risk for small and medium enterprises; support connecting Vietnamese small and medium enterprises with enterprises of other countries; have specific, clear and synchronous policies for craft village enterprises and individual handicraft households to move from polluting residential areas to industrial parks.

Mr. Dang Dinh Chinh, Chairman of the Board of Directors of SMP Holdings Joint Stock Company (SMP) - the first and only Vietnamese enterprise to be a tier 1 partner in manufacturing and assembling phones and tablets for Samsung, providing products and services to more than 70 FDI enterprises in the electronics sector, proposed that the Government propose and introduce Vietnamese enterprises to become tier 1 partners in manufacturing and assembling components for large technology corporations; have preferential policies, especially in terms of capital, for small and medium-sized enterprises to expand investment and development.

After the leaders of ministries and branches discussed and answered the opinions and recommendations of business leaders, and delivered a concluding speech at the conference, Prime Minister Pham Minh Chinh reiterated that the world situation is changing rapidly, complicatedly and unpredictably, so we must adapt flexibly and effectively to promote positive things and overcome limitations. Meanwhile, our assigned tasks are higher, with a growth target of at least 8% in 2025, creating momentum, strength and position for the double-digit growth target in the coming years.

Prime Minister Pham Minh Chinh gives a directive speech. (Photo: Duong Giang/VNA)

The Prime Minister emphasized that the goals of change should also change the tasks, solutions and methods, requiring the entire political system, the entire population and the business community to make efforts and participate.

The Prime Minister pointed out the important role of small and medium enterprises in creating jobs, reducing poverty, improving workers' income, contributing to the state budget; ensuring social security, especially in natural disasters, eliminating temporary and dilapidated houses...; and said that with a flexible management mechanism, small and medium enterprises are places where it is easy to adapt to market changes and test new ideas, and implement innovation.

However, according to the Prime Minister, the development of the business community and enterprises still has many limitations and shortcomings; the potential and room for development have not been effectively exploited.

Most businesses are small in scale, with limited competitiveness, operational efficiency, and management skills; they still have a "seasonal" business mindset, lacking strategic vision; a number of entrepreneurs have poor ethics, business culture, and awareness; low innovation capacity, few businesses invest in research and development; low competitiveness, most small and medium-sized enterprises only participate in regional and global value chains at stages with low added value.

Therefore, the Prime Minister believes that enterprises in general, and small and medium enterprises in particular, need to make greater efforts, be more determined, and take more drastic actions to promote their role and mission as "the most numerous and flexible force, the reserve force of large corporations and enterprises" in socio-economic development.

The Prime Minister requested that enterprises contribute effectively to the implementation of the Party and State's guidelines and policies; specifically the Resolutions of the Central Committee, the National Assembly, and the Government, especially in innovation, application of science and technology, focusing on traditional growth drivers, promoting new growth drivers such as digital economy, green economy, circular economy, knowledge economy, sharing economy, and combating climate change.

The Prime Minister hopes that businesses will promote national spirit, innovate, overcome their own limits to rise from small and medium enterprises to large enterprises; actively participate in building institutions, removing difficulties and obstacles that businesses themselves are facing; effectively exploit the country's potential such as mineral resources, land, history, culture, especially human intellectual resources; promote international cooperation, transfer of science and technology, attract finance, management science; diversify markets, diversify products, diversify supply chains, participate deeply in the global supply chain; promote social security work, participate in the process of hunger eradication, poverty reduction, development of social housing, especially social housing for young people, people with difficulties, low incomes...

Delegates attending the Government Standing Committee Conference working with state-owned enterprises. (Photo: Duong Giang/VNA)

On the part of the Government and ministries and branches, Prime Minister Pham Minh Chinh requested to review and summarize the implementation of resolutions, guidelines and policies related to small and medium enterprises to propose competent authorities to promulgate and institutionalize guidelines and policies for enterprise development in general, including small and medium enterprises; assigned Deputy Prime Minister Ho Duc Phoc and Deputy Prime Minister Nguyen Chi Dung to direct the Ministry of Finance to implement and submit to the National Assembly at the upcoming session.

Informing that the Government, ministries, branches and localities continue to further promote 3 strategic breakthroughs, including the breakthrough in institutional improvement, to unblock and mobilize all resources for development, cut all cumbersome and unnecessary administrative procedures, eliminate the request-grant mechanism, reduce hassle and petty corruption; promote decentralization, delegation of power, coupled with strengthening supervision and inspection..., the Prime Minister assigned Permanent Deputy Prime Minister Nguyen Hoa Binh and Deputy Prime Minister Le Thanh Long to direct the implementation.

The Prime Minister proposed to continue promoting infrastructure development, including hard infrastructure, soft infrastructure, transport infrastructure, digital infrastructure, information technology infrastructure, healthcare, education, etc., to create new development space, added value, create jobs, thereby developing small and medium enterprises; reduce logistics costs, input costs, increase product value for enterprises; promote training of high-quality human resources, increase labor productivity for enterprises.

The Prime Minister directed ministries and sectors to promote the signing of free trade agreements, investment protection agreements, have open visa policies, exploit traditional markets, expand new markets, especially those in the Middle East, Africa, Central Asia, South America, etc.; focus on building national brands, thereby increasing product value, improving production and business efficiency; developing research and development centers, innovation centers.

The Prime Minister requested not to criminalize economic and civil relations; to stabilize interest rates, reduce costs to reduce lending interest rates to support businesses; to operate monetary and fiscal policies proactively, positively, flexibly, appropriately and effectively; to promote public investment, create jobs for businesses and people; to continue to study the reduction of taxes, fees and charges for businesses such as value added tax, land rent tax, and resource management fees.

Emphasizing that authorities at all levels must be creative, listen, absorb, remove difficulties and obstacles, encourage and motivate businesses to develop, Prime Minister Pham Minh Chinh directed localities, according to their decentralized functions, tasks and powers, to review and handle businesses' problems; consider businesses' work as their own.

Supporting the establishment of funds to support business development, the Prime Minister requested strict management and effective use; assigned the Ministry of Finance to preside over and coordinate with ministries and branches to support businesses in implementation.

With the spirit of urgency, “high determination, great effort, drastic action, focus, key points, completing each task,” “clear assignment of people, tasks, responsibilities, time, products,” “working together, enjoying together, developing together,” “harmonizing benefits, sharing risks; harmonizing interests between the State, people, and enterprises,” Prime Minister Pham Minh Chinh called on all subjects to promote the spirit of great national unity to combine with the strength of the times, helping to develop small and medium enterprises, contributing to the rapid and sustainable development of the country./.


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