Tackling difficulties to promote the private sector

(VOVWORLD) - Prime Minister Nguyen Xuan Phuc held a policy dialogue with 14 chairmen and general directors of leading private enterprises in Hanoi on Saturday to seek ways to address difficulties facing the private sector. Before the dialogue, the Prime Minister worked with Ministries and sectors on creating a favorable business environment for Vietnamese private enterprises.
Tackling difficulties to promote the private sector - ảnh 1 Prime Minister Nguyen Xuan Phuc and female entrepreneurs(Thu Hang/Vietnamnet)

A resolution of the Party Central Committee declares the private sector an important driver of the economy.

Private sector plays a growing role in the Vietnamese economy

Since 2010, the private sector has contributed 43% of GDP while the state sector has contributed only 28.9%. The private sector’s revenue is also 3 times higher than that of the public sector. Prime Minister Phuc said: “Previously, we did not have such big economic groups. The private sector is a driving force of the national growth. Private enterprises account for 96.7% of the 500,000 enterprises in Vietnam. Many economic groups have become very successful.”

Chairing the Private Economic Forum 2017 attended by nearly 1,000 private enterprises 2 months ago, the Prime Minister asked the private sector to increase its contribution to GDP to 50 or 60%.

Removing obstacles

The government has organized a number of meetings with enterprises, revised a number of policies, and addressed problems related to bad debts, ineffective banks, divestment, SOE equitisation, and inspection. The government has also asked commercial banks to lower interest rates to reduce costs for enterprises. Insurance and BOT transport projects will be reviewed to reduce costs for enterprises. Minister and Head of the Government Office Mai Tien Dung said: “Cutting costs for enterprises is very important especially road expenses, public infrastructure fees, and customs inspection fees.”

The Ministry of Industry and Trade recently cut in half business requirements to reduce costs for enterprises.  Minister Dung said: “The government has set up an administrative reform advisory council which is tasked with connecting enterprises inside and outside Vietnam and making recommendations to tackle difficulties for enterprises. Reforming administrative procedures is one of the World Bank’s criteria for improving the investment environment.”

Promoting the private sector is one of the steps the government is taking to make Vietnam a modern industrial country.