Speakers at the “Solutions to Promote the Development of the Private Sector” seminar hosted by Người Lao Động (The Labourer) newspaper on Thursday in HCM City. — VNA/VNS Photo

HCM CITY — Việt Nam is placing significant emphasis on the private sector as a key driver of its long-term growth strategy, targeting its contribution of 70 per cent to the country's GDP by 2030.

Speaking at a seminar on Thursday in the city, Nguyễn Đình Cung, former director of the Central Institute for Economic Management, said the private economy plays a “key role in shaping Việt Nam’s future.”

With appropriate institutions, sound policies, and a supportive business environment, the private sector can flourish, ultimately helping Việt Nam achieve high-income status in the next two decades, he said.

Cung also noted that private businesses face significant challenges, including limited access to resources such as credit and land, as well as bureaucratic hurdles that hinder their progress compared to State-owned enterprises.

He urged the Government to adopt market-aligned management practices that promote business freedom, protect property rights, and ensure fair competition.

Cung called for a more supportive environment for private enterprises to invest abroad and emphasised the need for a stable macro-economic climate to attract long-term investment.

He expressed concern over recent declines in provincial initiatives supporting businesses but remained optimistic that small collaborative efforts could rebuild trust and pave the way for sustainable development.

An upcoming Politburo resolution regarding the private economic sector is expected to provide encouragement and direction for private enterprises, potentially ushering in a new era of growth, he noted.

Đỗ Quang Hiển, chairman of the Saigon - Hanoi Commercial Joint Stock Bank (SHB), noted the vital partnership between commercial banks and businesses.

Many small and medium-sized enterprises (SMEs) struggle to secure funding due to a lack of collateral and underdeveloped business plans, despite having promising ideas, he said.

Hiển stressed that banks should not only provide credit but also offer guidance to these businesses.

He urged the Government and the State Bank of Vietnam to create mechanisms that alleviate fears surrounding lending, particularly the concern that banks may not recover loans.

Phạm Đình Đoàn, chairman of the Phú Thái Group, said it was important for private enterprises to develop clear short-term and long-term plans to achieve significant growth.

He highlighted the importance of collaboration among businesses to strengthen their collective capabilities.

Many Vietnamese enterprises face challenges in technology, management skills, and capital resources, making Government support essential.

Lại Hoàng Dương, general director of the Thánh Gióng Computer Company, called for additional supportive policies as Việt Nam embarks on a new era with ambitious growth goals.

He expressed hope that the Government would implement more tax exemptions, interest rate support, and streamlined procedures.

Dương raised concerns about entrepreneurs facing travel restrictions due to late tax payments, which often result from staff errors in paperwork.

He suggested that training sessions be held to enhance document handling skills to ensure better compliance with legal requirements.

Private sector key to national growth

In a recent article, Party General Secretary Tô Lâm highlighted the vital role of Việt Nam’s private sector in boosting the national economy.

He noted that the private economy not only enhances production and services but also improves labour productivity, fosters innovation, and strengthens competitiveness

Party General Secretary Lâm pointed out that many Vietnamese private enterprises have successfully established global brands, contributing significantly to the economy.

Recently, the Government convened its inaugural meeting to strategise on enhancing the growth of Việt Nam’s private economy.

The meeting set a goal of achieving two million private businesses by 2030, in line with the nation’s vision of becoming a high-income nation by 2045.

Prior to 1986, Việt Nam’s economy was State-controlled. The shift began with the Communist Party’s recognition of the private sector, which now encompasses a variety of enterprises and contributes over 50 per cent of GDP, employing 82 per cent of the workforce.

Despite its growth, the private sector faces challenges such as administrative barriers, informal fees, and limited access to land and financing.

Over 50 per cent of firms report time-consuming inspections, while 60 per cent struggle to secure funding.

The meeting noted the need for a plan that removes obstacles, fosters a transparent environment, and promotes innovation and competitiveness.

The final draft will be submitted to the Communist Party of Việt Nam’s Politburo for approval.

The “Solutions to Promote the Development of the Private Sector” seminar hosted by Người Lao Động (The Labourer) newspaper was attended by hundreds of representatives of businesses, banks, and leaders. — VNS