The Private Economic Forum 2023 organised by the Vietnam Private Business Association. (Photo:) laodong.vnCan Van Luc, chief economist at BIDV and member of the National Financial andMonetary Policy Advisory Council, told the event, organised by the VietnamPrivate Business Association (VPBA) that after nearly 40 years of renewal, theprivate economic sector has had many strong brands, making an importantcontribution to the country's socio-economic development.
A number of large-scale, multi-industry private economic groups have beenformed, which are capable of competing in the domestic and internationalmarkets.
In terms of quantity, the private sector accounts for about 98% of the totalnumber of over 800,000 operating enterprises; accounting for about 85% of thetotal number of employees in the country, including the individual economicsectors.
In particular, the private sector makes a large contribution to the Statebudget rising from 13.88% in 2016 to 18.5% of total budget revenue in 2021 andaccounts for about 35% of total import turnover and 25% of total exportturnover, nearly seven times higher in terms of import and 10 times in exportcompared to the State-owned enterprise sector.
Capital from the private sector also makes a great contribution tosocio-economic development, increasing the social investment capital from 51.3%in 2016 to 59.5% in 2021.
In addition to highlighting the results and contributions of the privatesector, Luc and other delegates also pointed out shortcomings and limitations.
Although the private sector contributes a large proportion to the GDP, about46.4%, the growth rate of the private sector tended to decrease in recent yearsand failed to reach the target of 50% by 2020 according to Resolution 10-NQ/TW.
In addition, the private economy is mainly small and micro-scale, most of whichare still household businesses, accounting for 94%.
The level of technology, management, financial capacity, product quality andcompetitiveness are still low.
Industry structure is still unreasonable as well as lack of links with eachother and other economic sectors.
The capacity for international economic integration and competition is stilllimited, and the level of deep participation in regional and global valuechains is still low. The private sector, especially private enterprises, alwayslacks capital.
Chairwoman of BRG Group Nguyen Thi Nga said that a business that wants tosucceed not only needed aspirations and passion, but the business itself neededto have the capacity and careful preparation.
In particular, the businesses must always put people at the centre, which wasan important asset for success and development, noted Nga.
They must make efforts to improve the working environment, share information,benefits and responsibilities with employees, and always ensure the interestsof employees at the best level, added Nga.
She also said that the entrepreneurial team and each enterprise must beproperly, fully and deeply aware of the rights, obligations andresponsibilities of their entrepreneurs and businesses in the process ofinnovation and development of the country.
In addition, it was also necessary to pay special attention to promote digitaltransformation, invest wisely in the application of information technology toimprove the efficiency of business administration at enterprises, she added.
Capital for private enterprises was also a big issue attracting many opinionsat the discussion.
Cao Tien Doan, Chairman of the Thanh Hoa Business Association, said thatalthough the issue of access to capital for private enterprises in recent yearshad been regulated quite specifically in many legal documents, in fact, theaccess to capital of enterprises still faced many difficulties and obstacles.
The chairman and a number of businesses suggested that the banking industrypromptly solve outstanding problems, helping businesses easily grasp and accesscapital sources.
Along with that, they asked banks to continue to promote administrative reform,especially improving process, simplifying lending procedures, strengthening theapplication of information technology in management, analysis and prevention ofrisks.
Joint stock commercial banks should regularly organise training courses toimprove professional capacity of staff in charge of credit and loans to adviseand support timely, safely and effectively businesses when in need of loans,said Doan.
In addition, business representatives also recommended strengtheninginspections and reviews of internal processes and regulations, early warning ofpotential risks to have timely preventive and handling solutions, helpingbusinesses limit possible damage.
At the same time, there should be a mechanism to closely monitor and inspectthe implementation and have strict sanctions to avoid taking advantage of orimproperly implementing the loan policy for self-seeking purposes./.
VNA
