Let the private economy accelerate

The imprints

After 35 years of reform, from being limited in development, the Vietnamese private economy has made great strides, becoming an indispensable part of the socialist-oriented market economy (socialist). . One of the important milestones is the 5th Conference of the Party Central Committee (Session XII) promulgated Resolution No. 10-NQ / TW dated June 3, 2017 on “Developing KTTN as a driving force. the importance of a socialist-oriented market economy ”with a clear view:

Eliminate all barriers and prejudices, and create all favorable conditions for a healthy and right-oriented private economic development. The private economy is developed in all sectors and fields that are not prohibited by law. Promoting the startup and innovation movement; improve operational efficiency of small and medium enterprises. Create favorable environment and conditions for business households to voluntarily cooperate to form cooperative organizations or operate under the business model. Encourage the formation of private, multi-owned and private economic groups contributing capital to state economic groups, capable of participating in regional and global production networks and value chains. At the same time, the Resolution also emphasizes encouraging the private sector to contribute capital and buy shares of state-owned enterprises upon equitization or divestment of the State. Promote the development of all forms of linking production, trading, supplying goods and services according to the production network, market value chain between the private economy and the state economy, the collective economy and businesses. foreign-invested enterprises aimed at receiving, transferring, creating a wide spread of advanced technology and modern governance, enhancing added value and expanding consumption markets.

Activities of Vietnamese enterprises in the first month of 2021- Source: General Statistics Office

With the Party’s strong determination to innovate as mentioned above, the number of newly registered enterprises has increased rapidly. In the period 2016-2018, on average, there were 122,744 newly established enterprises each year with a registered capital of 1,221,744 billion VND, an increase of 49.3% in the number of enterprises and an increase of 155.8% in capital compared to period of 3 years earlier. According to the Ministry of Planning and Investment, by June 2019, accumulated nearly 1.3 million new establishment registrations of enterprises in the private economic sector. Despite many difficulties due to the COVID-19 epidemic, in January 2021, more than 10,000 enterprises registered for new establishment with a total capital of more than 155,000 billion VND.

The rapid growth in total capital of private enterprises has never been as great as today. About 546 billion USD has been mobilized and brought into the economy by Vietnamese enterprises in just 15 years (2000-2015), averaging 36.4 billion USD per year. This outstrips the annual registered and realized FDI and ODA disbursement in Vietnam in the same period. The fixed assets and long-term investments of domestic private enterprises increased 114 times between 2000 and 2015. This is a record growth rate, much faster than the state-owned enterprises (SOEs) and foreign-invested enterprises.

On June 14, 2019, Prime Minister Nguyen Xuan Phuc visited VinFast Auto Factory – Photo: VGP

In the past 5 years, Vietnam’s economy has been known to the world through names of private corporations such as: Vingroup, Sun Group, T&T Group, Thaco, Vietjet, TH True Milk, Masan … With Vingroup The decision to invest in the automobile industry has brought the Vietnamese car brand (VinFast) to the international level. On June 14, 2019, attending the inauguration ceremony of Vinfast Auto Factory, Prime Minister Nguyen Xuan Phuc expressed his great surprise after just 650 days of construction, the factory was put into operation. This shows the great aspirations and burning enthusiasm among the people who have joined hands to create a project that can be called a miracle of the automobile industry in Vietnam as well as the world.

Many other private enterprises have achieved an export turnover of millions of USD, significantly contributing to growth, budget revenue and job creation, ensuring social security. Vietnam now has an enterprise with a market capitalization in excess of $ 1 billion. The private economic sector also actively participates in solving difficulties, creating more jobs and jobs for our economy, especially in the context of the economy being affected by uncertainties such as translation COVID-19; climate change, extreme weather events, natural disasters, droughts, saltwater intrusion …

Some shortcomings

In addition to the great achievements that the private economy has brought about in recent years, it can be seen that the majority of private enterprises are micro and small, limiting the ability of enterprises to innovate. engineering, technology and improving labor productivity. If we include nearly 4 million business households, the picture of Vietnam’s domestic enterprise size is even more imbalanced because most household businesses are both micro and small. Although microenterprises and household businesses play an important role in creating livelihoods and jobs for millions of people across the country, these actors would otherwise grow in scale and improve their production methods. business, it will be difficult for our country to realize the potentials and advantages to improve labor productivity; At the same time, the resistance to the COVID-19 pandemic is also extremely difficult, many small and medium-sized businesses have to suspend operations, especially in the field of tourism and transportation.

Also because the majority of domestic private enterprises are small and micro, with a modest position in the global trade chain, it is difficult to benefit the best from international trade agreements that Vietnam Nam has joined the signing.

In terms of State management (State management), there have been new strides, but there are still many barriers. For example, in 2016, the National Assembly promulgated the Law amending and supplementing Article 6 and Appendix 4 on the list of conditional business lines of the Investment Law, in which there are 243 regulated business lines. to sue. With 243 conditional business lines, there are 6,191 business conditions (business registration).

Administrative procedure reform in general and reduction and simplification of business registration in particular have always been one of the key contents of the innovation over the past time because this is the difference between state management thinking of the planned economy. centralization and market economy, between the role of the state governed by administrative orders with the tectonic state development. The results in the above fields have always been welcomed and welcomed by the people and businesses, but it is very difficult to achieve the goal, despite efforts. One of the reasons mentioned by some experts and people is the inertia of some authorities and interests of the group. In addition to the advances in some ministries and sectors actively creating substantial changes recognized by the business community, there are many opinions that reducing the number of business registration in many places can only be done one way. mechanics converts 2 into 1 or converts to another condition, or focuses only on small regulations, low impact areas …

This could be one of the main reasons hindering substantive innovation efforts. On the other hand, the thought of “management addiction”, if not managed, still appears in some state management agencies. In some regulations, the nature and purpose of promulgation are not clear. For example, why is that information needed (eg about serial number of daily filling gas cylinders)? Gas business enterprises said that this regulation is very difficult to implement and makes it difficult for businesses, because there are gas filling stations that produce thousands of gas cylinders a day, so recording the above parameters is very manual. time consuming, labor cost of the business. Why is the regulation at that level (such as the minimum space condition for an office of 8 m2 / person, to have a stable lease for 2 years)? What is such a regulation for, is it really necessary and reasonable? …

Prime Minister Nguyen Xuan Phuc emphasized that creating all conditions for the private economy to feel secure in investment in production and business at the Standing meeting of the Government on February 18 – Photo: VGP

Let the private economy fly away

Implementing the Resolution of the XIII Party Congress, the comprehensive State management renewal project in the economic field, developed by the Ministry of Planning and Investment this time, emphasizes the need to develop a digital economy on the revolutionary basis. For the 4th time, the solution groups should aim to 2030, fundamentally and comprehensively renovate the state management method towards digital technology, digital government. At the same time, it is necessary to switch from control to tectonic; from direct to indirect intervention; from pre-check to post-check, in accordance with international principles and practices in order to create a favorable and equal business environment for all economic sectors to develop.

In parallel with the above big goal, there are other goals that also require a lot of efforts and efforts in the implementation organization such as building policies based on the principle of respecting market laws, principles and practices. international; business environment and competitiveness of equivalent quality to ASEAN-3 countries (Singapore, Thailand and Malaysia); improving the capacity and quality of the contingent of cadres and civil servants; expanding the participation of private economic sectors and non-state economic sectors in providing public services, building infrastructure; ensure openness, transparency and equal treatment among businesses and organizations, regardless of economic sectors …

It can be said that the scheme of the Ministry of Planning and Investment this time focuses on strongly renovating the thinking of State management on the private economy; clear separation between state management and corporate governance; to step up the application of achievements of the 4 industrial revolution and the development of the digital economy and digital government. This is clearly shown in the Project proposing 5 groups of new solutions and 25 tasks.

For example, the group of solutions for the role of orientation, planning and regulation of economic development, state management focuses on improving the quality of building, implementing strategies, planning, planning orientation. socio-economic development, macro management and regulation, development of medium and large enterprises in leading economic sectors … Solutions group on the role of creating a policy and legal framework with the aim of improving the quality of the institutional environment, removing conflicting and overlapping regulations, hindering economic development according to the laws of the market, promoting the private economy to become one of the most important driving forces. importance of the economy, creating an equal business environment, irrespective of the form of ownership and economic sectors; fully and synchronously develop the market of production factors, promote start-ups, innovate, and transform the number of enterprises …

Solution groups on the role of indirect intervention in investment and production of enterprises and the allocation of resources for economic development will comply with the preferential policy mechanism, supporting enterprises on the principle of equality and public equal, forming a value chain to promote competition and inclusive development …

Pay much attention to the implementation of the ‘dual’ goal to fight against the COVID-19 pandemic, restore and develop the economy, so right in the first week after the New Year’s Eve (February 18), the ordinary meeting The Government has focused on discussing the Project on comprehensive State management reform in the economic field. At this meeting, the Prime Minister agreed to include the contents of the Project in the Government’s Action Program to implement the Resolution of the XIII Congress of the Party. At the same time, Prime Minister Nguyen Xuan Phuc emphasized the need to promote all potentials and advantages to promote the rapid and sustainable private economic development; to focus on disassembling institutions, policies and laws, freeing up production and social resources for economic development, creating all conditions for the private economy to feel secure in investment in production and business.

These are very good signs in January, the first month of the Tan Suu Spring. It is certain that barriers and shortcomings will be removed in the near future, to have a space and environment that is more and more open for the private economy to accelerate, take off and fly away, contributing to extremely successful implementation of the Resolution XIII of the Party.

According to Chinhpphu


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