Big gap between policy and practice – The target of 1 million enterprises by 2020 is not met


This is the affirmation of Deputy Minister of Planning and Investment Tran Duy Dong at the Conference on Reporting Summary of Resolution 35 / NQ-CP on enterprise support and development up to 2020, by the Ministry of Planning and Investment ( Ministry of Planning and Investment) coordinated with the United States Agency for International Development (USAID) held on October 19, 2020.

The workshop is within the framework of the Project of Promoting Reform and Capacity Building to Connect Small and Medium Enterprises (LinkSME).

According to Deputy Minister of Planning and Investment Tran Duy Dong, performing the tasks assigned to the Work Program 2020, the Ministry of Planning and Investment was assigned to review, evaluate and develop a 5-year report on the implementation of Resolution No. 35 / NQ- CP and develop a draft Decree amending, supplementing or replacing the Government’s Decree No. 39/2018 / ND-CP dated March 11, 2018 detailing a number of articles of the Law on Support for Small and Medium Enterprises and submit to the Government in the fourth quarter of 2020.

According to Resolution 35 / NQ-CP on business support and development up to 2020, there are 6 goals that must be achieved by 2020, of which the first goal of 1 million enterprises operating by 2020 has not been achieved.

Ms. Trinh Thi Huong – Head of General Policy Department, Enterprise Development Department (Ministry of Planning and Investment) said that until October 2020, there are nearly 759 thousand enterprises nationwide. In the 2016-2020 period, the average speed of newly established enterprises is just over 10%, the average growth rate of operating enterprises is 14.4%. Meanwhile, in order to achieve the target of 1 million enterprises by 2020, the average growth rate of operating enterprises needs to be 17.7% ”.

Notably, policies to encourage business households to convert to businesses are not attractive enough, resulting in very low transformation. Synthesis from localities shows that, although the number of business households currently accounts for more than 4.3 million households, the willingness of business households to convert and formalize production and business activities still has many barriers. Up to now, only 4/55 localities (Vinh Long, Ninh Thuan, Lam Dong, Ha Tinh) have developed plans and programs to support SMEs to transform from business households.

In fact, the number of enterprises converting from business households is still very low. According to the report of the Enterprise Development Department, Hai Phong city in the two years 2018-2019, only 4 enterprises successfully converted from business households; Vinh Phuc province in 2018 has only 1 enterprise converted from a business household into an enterprise, Phu Yen province has 2 enterprises transformed.

This is partly due to the impact of the Covid-19 translation. From the beginning of 2020 up to now, the number of temporarily suspended enterprises increases 82% over the same period, the number of newly established enterprises has reached the lowest level in the past 5 years.

However, the main subjective cause is due to ineffective implementation of tasks and solutions to support enterprises in Resolution 35, mainly stopping at the promulgation of regulatory documents; The level of access to and enjoying the policies of enterprises is still limited. Besides, many supporting policies for businesses are not effective.

Deputy Minister Tran Duy Dong said that there is a big gap between policy and implementation practice, and the problem now is how to shorten this gap.

At the conference, delegates focused on exchanging and contributing ideas to focus on existing issues and problems in the implementation process, contributing to the drafting of Decree amending Decree 39/2018. / ND-CP, proposing solutions to minimize the gap between policy and enforcement, improve the efficiency of implementing policies to support and develop businesses in the coming period.

Le Kim Lien

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