Vietnam will have 10 USD billionaires and 2 million businesses

Resolution No. 66/NQ-CP was issued by the Government 3 days ago (May 9) to implement Resolution No. 41-NQ/TW of the Politburo on building and promoting the role of Vietnamese entrepreneurs in the new era. Accordingly, the program sets out that from now until 2030, there will be at least 2 million enterprises, of which many entrepreneurs will be formed and developed as leaders of strong economic groups with potential and competitiveness in the domestic and international markets. In particular, by 2030, at least 10 Vietnamese entrepreneurs will be on the list of world USD billionaires, 5 most powerful entrepreneurs in Asia voted by prestigious world organizations. The number of enterprises ranked in the list of enterprises with the highest brand value by prestigious ranking organizations in the world will increase by 10% each year... In 2022, the number of USD billionaires in Vietnam recorded by Forbes Magazine (USA) is 7 people. In 2024, the number will be reduced to 6 USD billionaires, including Mr. Pham Nhat Vuong, Chairman of Vingroup; Ms. Nguyen Thi Phuong Thao, General Director of VietJet Air; Mr. Tran Dinh Long, Chairman of Hoa Phat Group; Mr. Ho Hung Anh, Chairman of Techcombank; Mr. Nguyen Dang Quang, Chairman of Masan Group; and Mr. Tran Ba ​​Duong, Chairman of Truong Hai Auto Corporation (Thaco Group).

Production line inside Thaco's supporting industry factory at Thaco Chu Lai Industrial Park (Quang Nam)

Manh Cuong

Thaco Mazda car manufacturing plant in Chu Lai, Quang Nam

Thai Nguyen

Although the number of Vietnamese businessmen is still quite modest in the list of world billionaires, it is a positive result after decades of economic development. At the same time, a series of Vietnamese enterprises and Vietnamese brands have become more widely known in the international market. For example, Vingroup Corporation has been mentioned by international media after establishing the Vietnamese electric car brand VinFast and quickly bringing Vietnamese electric cars to the US, Europe, Asia as well as listing shares on the US Nasdaq stock exchange. FPT Corporation has also joined the group of billion-dollar information technology service enterprises, affirming its ability to implement large-scale projects for the world's leading corporations, marking Vietnamese intelligence globally. Or Hoa Phat Group is currently the only Vietnamese enterprise that can produce hot-rolled coil steel (HRC) and has become the largest steel production enterprise in Southeast Asia...

VinFast factory

VFS

VinFast electric car factory in Cat Hai district, Hai Phong city

Ba Hung

It is estimated that the whole country has about 920,000 active enterprises. In addition, there are about 5.2 million non-agricultural individual economic establishments. According to economic experts, the target of reaching 2 million enterprises by 2030 is quite challenging but can be achieved if the Government has specific solutions, creating the best business and investment environment for enterprises to boldly develop. Economic expert, Associate Professor, Dr. Vo Dai Luoc, former Director of the Institute of World Economics (Vietnam Academy of Social Sciences), commented: Resolution No. 41-NQ/TW issued by the Politburo on Vietnamese Entrepreneurs' Day, October 10, 2023, clearly stated the goal of developing a strong team of entrepreneurs in terms of quantity and quality, making worthy contributions to the country's development goals... That means that the role of entrepreneurs and private enterprises has been increasingly recognized as important and this is the basis for making the Vietnamese economy develop more strongly. The most important issue will be how to achieve the set goals.

A recent report on the richest cities in 2024 by investment migration consultant Henley & Partners (London, UK) showed that in Southeast Asia, only two cities were mentioned, namely Ho Chi Minh City of Vietnam and Singapore. The report noted that the increase in the wealthy population of Ho Chi Minh City could be due to the city's rapid growth in many different sectors, including technology, financial services, electronics, tourism and textiles. Henley & Partners' findings are consistent with New World Wealth's previous forecast that Vietnam's assets will increase by 125% over the next decade. This would be the largest growth of any country in terms of GDP per capita and the number of millionaires. Specifically, the statistical report shows that Vietnam has 19,400 millionaires with assets of more than 1 million USD and 58 tycoons with total assets of more than 100 million USD. This is considered a relatively safe country compared to other countries in the Asia-Pacific region. This creates more motivation for businesses to establish better production activities. In addition, low labor costs, good infrastructure and export support policies have turned Vietnam into a top destination for international investment. That is the strength that helps Vietnam have more and more wealthy people, the number of billionaires and millionaires is increasing accordingly.

Hoa Phat Steel Factory

HRC steel production at Hoa Phat

HPG

The above figures are also quite similar to the Prosperity Report released by the consulting firm Knight Frank. Accordingly, the number of super-rich people in Vietnam, individuals who own assets of 30 million USD or more, is estimated at 752 in 2023, an increase of 2.4% compared to the previous year. This increase is lower than neighboring countries such as Malaysia (4.3%), Indonesia (4.2%) and Singapore (4%), but is 3 times higher than Thailand with only 0.8%. It is expected that by 2028, the super-rich population of Vietnam will reach 978, an increase of about 30% compared to 2023 and be in the top 5 in Asia - Pacific. Scientist, Professor, Dr. Vo Tong Xuan said that Resolution 66 of the Government with specific goals and solutions to implement Resolution 41 of the Politburo further affirms the direction of Vietnam's economic development focusing on private enterprises. But from the resolution to reality, there needs to be more specific and clear policies. Among them, there must be policies to encourage training and self-training for the business community. Only people with sufficient qualifications and understanding are capable of running and making businesses grow stronger and stronger, able to compete in Vietnam or in the region.

"Although in reality some entrepreneurs may not have gone to university and are still successful and run their businesses well, this number is not high. Entrepreneurs themselves still have to equip themselves with knowledge and need to be encouraged with specialized training programs," said Professor Vo Tong Xuan. According to Professor Vo Tong Xuan, most of the largest corporations in the world today come from family businesses. Therefore, households and production facilities in Vietnam can also be seeds. If there is a good business environment, entrepreneurs are confident, promote creativity and development, and the facilities will grow and also become large corporations. Therefore, Professor Xuan emphasized that support policies for small businesses and households are almost available; but when implemented in localities, they are not smooth. For example, in terms of accessing capital, households and small and medium-sized enterprises still face many difficulties. Or policies to encourage startups have also been introduced but implementation is slow, many policies are not specific. The government must pay attention to removing bottlenecks in the business environment so that all economic sectors are treated fairly. This will promote enthusiasm and diverse creativity of all economic sectors, especially entrepreneurs. A strong economy must have more large corporations and talented entrepreneurs.

According to economist, Associate Professor, Dr. Vo Dai Luoc, specific policies and goals on developing the private economy and promoting the formation of a team of entrepreneurs are important, reflecting Vietnam's viewpoint in the new context. Currently, state-owned enterprises still account for about 28% of GDP, foreign-invested enterprises (FDI) account for 18% of GDP, private enterprises only account for about 10% of GDP and the rest is individual and household economies. In reality, there are still many "discriminatory" policies between the above economic sectors. In other words, state-owned enterprises are given priority, FDI enterprises have many preferential policies, while private enterprises rarely enjoy similar policies. Meanwhile, in developed countries, all economic sectors are the same, applying the same policy and state-owned enterprises account for a very low proportion. Many countries have applied the principle for hundreds of years that the state does not do business. State-owned enterprises were established only to perform certain fields that the private sector does not do.

VietJet Air plane takes off and lands at Tan Son Nhat airport, Ho Chi Minh City

Independence

Associate Professor, Dr. Vo Dai Luoc emphasized: To promote the development of the private economy, self-reliance, and the creation of many large and powerful corporations capable of competing in the world, Vietnam must consider abolishing policies that only give priority and incentives to state-owned enterprises or FDI enterprises. If there are any places or policies that consider the state economy to be the mainstay, this is limiting the private economic sector. Only by creating a fair and transparent business environment can entrepreneurs and private enterprises promote their ownership and creativity to grow stronger. To do this, it is necessary to accelerate the equitization of state-owned enterprises. More importantly, it is necessary to divest state capital to below 49% to truly transfer management to private units. Priority should be given to transferring and selling shares to domestic enterprises to continue creating large economic corporations. From the development of a strong private economic sector, there will be more big businessmen with billions of USD in assets like other countries. Dr. Nguyen Minh Thao, Head of the Department of Business Environment and Competitiveness Research (Central Institute for Economic Management - CIEM), assessed: Ambitious goals and plans have been set many times before, including the goal of Vietnam having to increase the number of USD billionaires or influential enterprises. The most recent is Resolution 02 of the Government on the main tasks and solutions to improve the business environment and enhance national competitiveness in 2024. Now is Resolution 66 implementing Resolution 41 of the Politburo. In which, the Politburo focuses on the development of the country on the role of the business community to solve the problem.

"This is very ambitious, but very necessary because with ambition comes effort. We do not lack solutions, but bringing solutions into life, implementing them in practice to realize the resolution is a matter for localities, ministries and branches. Therefore, the resolution is already there, there is no shortage of solutions, even very detailed ones. What we need are localities and agencies that dare to think and dare to do. There needs to be a change in policy approach, clear orientation for a greater cause, determination to remove obstacles... then it is not difficult for Vietnam to have a team of influential businessmen abroad. In the past few years, although there have been many difficulties and stagnation in reform, large, influential domestic enterprises have gone abroad, making Vietnam's name known in the international market... which is something to be appreciated", Ms. Thao emphasized. To achieve specific targets such as the number of enterprises and billionaires, Resolution 66 of the Government also "assigns specific tasks" to each ministry and sector, focusing on amending and supplementing the 2020 Enterprise Law to overcome current shortcomings and obstacles. At the same time, focus on perfecting mechanisms and policies to encourage investment in startups and innovation; preferential policies for the National Innovation Center, perfecting the circular economy project... By 2025, the Ministry of Planning and Investment needs to assess and soon have solutions to create an equal business environment between enterprises operating in the sharing economy and traditional ones. The Ministry of Industry and Trade is in charge of urgently completing the amendment and supplement of the decree on supporting industry development to create a mechanism to remove bottlenecks in the market and credit for supporting industry enterprises, promote domestic supporting industry enterprises to participate deeply in the global value chain, and increase the localization rate of industries. The resolution also requires the Ministry of Finance to propose a plan to improve the operational efficiency of the Credit Guarantee Fund for small and medium enterprises in the coming time...

Thanhnien.vn

Source: https://thanhnien.vn/viet-nam-se-co-10-ti-phu-usd-va-2-trieu-doanh-nghiep-185240511205048335.htm