Director of the German International Cooperation Agency, Dr. Michaela Baur
Sharing about the development prospects of Vietnam's private economic sector on the occasion of the 50th anniversary of the establishment of diplomatic relations between Vietnam and the Federal Republic of Germany (1975-2025), Director of the German International Cooperation Agency (GIZ), Dr. Michaela Baur, assessed that the non-state economic sector is becoming the "heart" of Vietnam's economy, contributing 50% of GDP, more than 30% of State budget revenue and providing jobs for more than 40 million people (accounting for 82% of the total workforce).
However, the private sector in Vietnam mainly consists of small and micro enterprises (SMEs), accounting for more than 95%. Micro enterprises have the potential to develop into small enterprises, and small enterprises have the opportunity to expand into medium enterprises, and continue to expand further. Their importance and level of participation in global value chains will continue to increase. Therefore, in the future, the Vietnamese private sector promises great potential for development.
According to Ms. Michaela Baur, when all key factors, such as investment capital, good partnerships in the value chain, skilled workforce and flexible operating space, private enterprises can thrive and improve their innovation capacity.
Vietnam is currently aiming for double-digit growth and becoming an industrialized, high-income country by 2045. All of these goals will be difficult to achieve without continuing to develop the private sector in a more quantitative, innovative and deeply integrated way with the global market, especially in a greener and more sustainable way.
Heavenly time, favorable location, and harmony of people: A golden opportunity for Vietnam's private economic sector to take off
Ms. Michaela Baur emphasized that the Vietnamese private economic sector is facing a golden opportunity to become a driving force for green and inclusive growth: favorable timing - when the world is strongly shifting towards sustainable development; favorable location - with strategic location and domestic market potential; favorable people - demonstrated through consensus between the government and businesses. Favorable opportunities create a solid foundation for the private sector to develop Vietnam more strongly than ever.
Vietnam's private sector enjoys many favorable conditions, such as a young workforce, a positive economic cycle, government support and reforms, free trade agreements, opportunities in digitalization and innovation, foreign investment and international cooperation.
On this occasion, Ms. Michaela Baur also proposed that the Government promote the use of e-Government platforms to create a more convenient and effective interactive process, while increasing transparency, stability and streamlining administrative procedures for businesses.
The GIZ Director also recommended that Vietnam increase access to finance for SMEs, through supporting the development of digital lending platforms and alternative sources of finance, and improving the stock and bond markets to make it easier for businesses to raise capital.
She suggested that Vietnam pay attention to improving vocational training and skills for the workforce, by supporting businesses in training human resources to meet the requirements of a digital and globally connected economy.
The government could also consider providing financial support for digital transformation initiatives, especially for SMEs in rural areas, to help them keep up with current development trends; ensure fair competition between the public and private sectors, accelerate the reform of state-owned enterprises (SOEs) and create a more level playing field for private enterprises, especially SMEs, and promote gender equality in SMEs’ operations.
"Ultimately, green and inclusive growth is the inevitable path for Vietnam. Long-term and stable support from the Government is crucial in helping the private sector meet the growing global demand for environmentally and socially sustainable goods and services, so that Vietnamese enterprises can become important links in the international supply chain," Dr. Michaela Baur emphasized.
Chief Representative of Hanns Seidel Foundation in Vietnam Michael Siegner
Sustainable Startups: A Key Driver for Vietnam’s Economic Growth
Michael Siegner, Chief Representative of the Hanns Seidel Foundation (HSF, Germany) in Vietnam, said that the private economic sector, especially innovative startups following sustainable and circular economic models, play an important role in Vietnam's long-term development.
Startups in Vietnam in general and startups in the circular economy sector in particular are currently facing common challenges, such as lack of capital, limited management skills and difficulty accessing the global innovation ecosystem.
Therefore, HSF pursues the mission of supporting Vietnamese startups to connect with innovation centers in Singapore and promoting large domestic enterprises to realize the potential of cooperation with startups towards sustainable development.
Currently, HSF mainly supports startups with an innovative and sustainable orientation through training, capacity building and networking. One of the prominent initiatives is the Climate Launchpad program, initiated by the EU and co-organized by HSF in Vietnam since 2020. Over the past five years, ClimateLaunchpad has attracted the participation and trained nearly 100 startups from 12 provinces and cities across Vietnam.
Through the program, many potential startups have been discovered and facilitated to develop, typically Alterno (a sand-based battery manufacturer) or AirX Carbon (with the NetZero Pallet product made from polymerized coconut fiber bio-waste). Currently, leading startups are also successfully integrated into the value chains of large companies.
"We have built a global green startup network, connecting Vietnam with the ASEAN region and Africa, creating conditions for startups to learn, share and expand their markets," Mr. Siegner shared.
Thanh Thuy
Source: https://baochinhphu.vn/chinh-phu-giu-vai-tro-ho-tro-quyet-dinh-doi-su-phat-trien-cua-kinh-te-tu-nhan-viet-nam-102250426162111557.htm
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