20 Years of Vietnamese Entrepreneurs

This was the content of a letter sent to entrepreneurs more than 20 years ago by the late General Vo Nguyen Giap, dated May 7, 2004, suggesting the need for a day dedicated to entrepreneurs, a Vietnamese Entrepreneur Award, given to outstanding entrepreneurs who are not only skilled in production and business, accumulating wealth, but also actively contributing to poverty alleviation…

Those who break free from conventional paths to thrive.

In the letter, General Vo Nguyen Giap emphasized that Vietnamese entrepreneurs are the vanguard of the entire nation, unwilling to accept poverty and backwardness, making worthy contributions to the great and small "Dien Bien Phu" victories in the cause of reform. With that perspective, the General stressed: Entrepreneurs are the leaders and conductors of their businesses, and must have the will to strive for progress in the spirit of innovation and creativity, thinking things that no one else has thought, doing things unprecedented, with the awareness to break free from the constraints of conventional thinking, reaching the intellectual heights of humanity, researching and applying advanced scientific and technological achievements. In particular, the General was deeply concerned that Vietnamese entrepreneurs must "improve their management skills so that their businesses can continuously develop, becoming reputable enterprises of national and international scale."

Prime Minister Phan Van Khai with businesspeople at the ceremony announcing Vietnam Entrepreneurs' Day, October 13, 2004.

More than five months later, Prime Minister Phan Van Khai signed Decision No. 990, designating October 13th as "Vietnamese Entrepreneurs' Day." To promote the role and traditions of Vietnamese entrepreneurs, and to encourage all sectors of society to contribute to the building and development of businesses and the growing strength of the entrepreneurial community, meeting the requirements of the country's industrialization and modernization, the Prime Minister requested that the annual organization of Vietnamese Entrepreneurs' Day be practical, economical, and effective, avoiding formality, and ensuring the requirements of educating the patriotic, self-reliant, and proactively creative traditions of entrepreneurs, encouraging the emulation movement in production and business, and enhancing the discipline, ethics, and business culture of enterprises and entrepreneurs.

At the same time, Vietnamese Entrepreneurs' Day is also an occasion to commend and reward, in appropriate forms, businesses and entrepreneurs who excel in business, effectively implement the Party's guidelines and policies, the State's laws, and organizations and individuals with achievements in building and developing businesses. On October 13th of that year, at the annual meeting between the Prime Minister and more than 500 businesses representing the nationwide business community, Prime Minister Phan Van Khai announced this decision.

Letter from President Ho Chi Minh to the Vietnamese business community, October 13, 1945

SOURCE: HO CHI MINH COMPLETE WORKS, VOLUME 4, PAGE 49, NATIONAL POLITICAL PUBLISHING HOUSE 2009

National affairs and domestic affairs always go hand in hand. A prosperous national economy means that the businesses of industrialists and merchants also prosper.

President Ho Chi Minh (Letter to the Vietnamese business and industrial sectors, Cuu Quoc newspaper, issue 66, October 13, 1945)

It has now been exactly two decades (October 13, 2004 – October 13, 2024) since Vietnam celebrated Vietnamese Entrepreneurs' Day. Dr. Nguyen Minh Thao, Head of the Business Environment and Competitiveness Department (Central Institute for Economic Management Research), recalled that to have Vietnamese Entrepreneurs' Day, we must go back to 1999 when the first Enterprise Law was enacted, paving the way for the development of the private economy. “The 1999 Enterprise Law laid the groundwork for a series of economic and administrative reforms and improvements to the business environment in our country.”

Thanks to the impact of the Enterprise Law, citizens have gained the freedom to conduct business in accordance with the law, creating millions of new and stable jobs for workers, contributing to economic growth and solving social problems. From that turning point, the role of businesses and entrepreneurs has been viewed very differently, driving significant changes in both the quantity and quality of businesses. From being prohibited, to experiencing explosive growth, within just 3 years after the law came into effect, the number of newly established businesses was 1.5 times higher than in the previous 10 years (1991-1999),” Ms. Thao recalled.

According to Dr. Nguyen Minh Thao, what General Vo Nguyen Giap stated in his letter to entrepreneurs and the subsequent institutional reforms, through the amendment and promulgation of open legal regulations related to businesses, have helped the country develop a strong and powerful business sector that has expanded internationally as it does today.

Why October 13th?

Going back in history, after the reading of the Declaration of Independence that gave birth to the Democratic Republic of Vietnam (September 2, 1945), during the Golden Week, Hanoi's industrialists and businesspeople were the first social leaders to be received by President Ho Chi Minh at the Presidential Palace. Despite his busy schedule, he paid great attention to Vietnamese businesspeople and industrialists. On October 13, 1945, when the business community gathered to form the "National Salvation Industrial and Commercial Group" and joined the Viet Minh Front, President Ho Chi Minh wrote a letter of encouragement and support. His "Letter to the Vietnamese Industrial and Commercial Sectors," published in the same day's issue 66 of the newspaper Cuu Quoc, affirmed the important role of the industrial and commercial forces in building the national economy.

Prime Minister Pham Minh Chinh held discussions with representatives of private corporations on the sidelines of the Government's Standing Committee meeting with large enterprises, September 21, 2024.

Uncle Ho's letter, less than 200 words long, can be considered the first document from the Party and State of Vietnam addressed to Vietnamese businesses and entrepreneurs. It was also the first call for patriotic emulation that Uncle Ho addressed to the business community. In the letter, Uncle Ho addressed the business community as "Gentlemen," beginning the letter in a warm and respectful manner: "To you gentlemen in the business community. I am very pleased to hear that the business community has united to form the 'National Salvation Business and Industry Group' and joined the Viet Minh Front. Currently, the 'National Salvation Business and Industry Group' is actively working to do many things beneficial to the nation and the people, and I wholeheartedly welcome this and look forward to many good results."

It is evident that President Ho Chi Minh highly valued and affirmed that entrepreneurs were an integral part of the national unity bloc, and that the "Industrial and Commercial National Salvation Group," an organization of the business community, was a member of the country's political system – a member of the Viet Minh Front. He wrote very clearly about the economic development tasks of businesses and entrepreneurs, stating: "While other sectors of the nation are striving to achieve complete national independence, the industrial and commercial sectors must work to build a stable and prosperous economy and finance," and "National affairs and domestic affairs always go hand in hand. A prosperous national economy means prosperous businesses for industrialists and merchants."

Prime Minister Pham Minh Chinh attended the inauguration ceremony of the Center for the Fourth Industrial Revolution (C4IR) at the Ho Chi Minh City High-Tech Park on September 25, 2024. To date, we have entrepreneurs who are USD billionaires, and brands that have crossed oceans, reaching global markets and gaining international recognition.

Uncle Ho's teachings on the development of businesses and entrepreneurs are not only found in his historic letter of October 13, 1945, but also in many of his speeches and writings related to the business and industrial sector. He criticized the excessive number of meetings and the tendency to prioritize quantity over quality in production. While production must be "fast, abundant, good, and cheap," producers must be honest, making good goods for the people to use, and should not display good goods while selling bad ones... Nearly eight decades have passed, but Uncle Ho's thoughts on businesses and entrepreneurs, as expressed in that letter, remain just as valuable. Over time, this community has grown stronger, becoming a pioneering force in the industrialization and modernization of the country.

Vietnam has surpassed the 1 million business mark.

Associate Professor Dr. Nguyen Manh Quan, Director of the Institute for Entrepreneurship Research, commented: "President Ho Chi Minh had a very early vision of the role of entrepreneurs. Shortly after Vietnam emerged from colonial rule, he clearly defined the government's policy: not to eliminate or seize the entire private economy, but to utilize it as an integral part of the overall economy. A wealthy people makes a strong nation. This understanding and concept ushered in the 'golden age' of entrepreneurship and the private economy from the 1950s and 1960s, and its strong development continues to this day."

The business community is growing stronger, meeting the requirements of the country's industrialization and modernization.

In fact, in just 20 years since the establishment of Vietnam Entrepreneurs' Day, the number of businesses has increased dramatically. While in 2004 there were approximately 90,000 active businesses nationwide, only 60,000 were registered with tax identification numbers, by the end of August this year, the number of active businesses across the country was nearly 1.2 million. Among them, we have entrepreneurs who are USD billionaires, and brands that have crossed oceans, reaching global markets and gaining international recognition. Dr. Nguyen Minh Thao commented: Over the past 20 years, Vietnam has joined the World Trade Organization (WTO) and participated in 19 bilateral and multilateral free trade agreements (FTAs), including new-generation FTAs. From a country with a trade deficit of over 5.5 billion USD in 2004, Vietnam has consistently had a trade surplus over the past decade; in 2023, the country achieved a trade surplus of 28 billion USD.

“After 20 years, our country's legal system has undergone significant changes. From having the Enterprise Law, the legal system has been expanded and adjusted in the spirit of innovation. The Investment Law has also been amended using a select-and-reject approach, instead of the previous select-and-allow approach. This means that what the law does not prohibit, businesses and people have the right to do. The institutional framework is moving towards a market-oriented system, which can create leverage, but the most important thing is the resilience of businesses. It is the strength of businesses that creates the impetus for development,” Dr. Nguyen Minh Thao emphasized and affirmed: “Businesses create jobs, generate income, and promote growth. No country develops without the development of businesses. Because they are the factor that creates jobs, stimulates innovation, and promotes competition.”

Therefore, it is necessary to continue removing barriers that hinder businesses. Institutional reform includes policy reform and institutional implementation. How can we improve the internal capacity of businesses, access to capital, and resources? For businesses and projects with potential and good capabilities, we should boldly unleash their potential. We must dismantle the mechanisms to allow private enterprises to participate in many sectors that were previously considered "forbidden zones," only handled by state-owned enterprises, such as the energy sector. This is the potential that Vietnam currently has to achieve breakthroughs in economic growth and development.

According to Resolution No. 66 dated May 9, 2024, on the Government's Action Program to implement Resolution No. 41 of the Politburo on building and promoting the role of Vietnamese entrepreneurs in the new era: By 2030, there will be at least 2 million businesses; 10 Vietnamese entrepreneurs will be included in the list of the world's USD billionaires; and 5 of the most powerful entrepreneurs in Asia will be selected by prestigious international organizations.

“Our private sector transformation is slower than in many countries. In this context, the resilience of entrepreneurs and businesses plays a crucial role. Without resilience, it would be impossible to overcome so many barriers to exporting goods in such large quantities. Thanks to FTAs ​​and new-generation FTAs, which require institutional changes from within, businesses have been encouraged to change and innovate, aiming for higher-quality products and compliance with the strict principles and criteria of developed markets.”

Dr. Nguyen Minh Thao , Head of the Business Environment and Competitiveness Department (Central Institute for Economic Management Research)

Thanhnien.vn

Source: https://thanhnien.vn/20-nam-doanh-nhan-viet-nam-185241009162845836.htm