Private economic opportunities reach new heights

The Politburo has just issued Resolution No. 68 on private economic development. For private enterprises, this is an unprecedented opportunity when the position and role of the private economy is raised to a new level. The business community is looking forward to new policy mechanisms, especially the upcoming solutions of the province to bring the Resolution into life. To help readers better understand this issue, Vinh Phuc Newspaper reporters interviewed comrade Pham Quang Thang, Deputy Director of the provincial Department of Finance.

Deputy Director of the Department of Finance Pham Quang Thang answers the interview. Photo: Chu Kieu

What is the significance of Resolution No. 68 of the Politburo to the private business community in the province?

Resolution No. 68 is a very important milestone, not only because the Politburo clearly affirmed that the private economy is one of the most important driving forces of the socialist-oriented market economy, but also because the Resolution opened up a very large development space for the private economic sector, especially the private business community nationwide, including Vinh Phuc.

It can be said that the significance of this Resolution for the private economic sector is summarized in the following 15 words: Recognition - Creating mechanisms - Giving trust - Promoting reform - Inspiration.

The Resolution affirms the role and position of the private economy, in which private enterprises are the core as an equal component, protected by law; at the same time, it is a great source of encouragement for authorities at all levels to take more drastic and stronger actions in improving the investment environment and removing barriers for businesses.

More importantly, the Resolution not only creates a favorable legal corridor, but also establishes a spirit of companionship, substantial support, and encouragement of innovation and start-ups. This is very necessary in the period when private enterprises in Vinh Phuc are facing challenges and opportunities from digital transformation, green transformation, and deep global integration.

Could you assess the current state of private economic development in Vinh Phuc; the advantages and difficulties in the implementation of Resolution No. 68?

The private economy in Vinh Phuc has made remarkable progress in recent times. Up to now, the whole province has more than 17 thousand registered businesses, of which about 12 thousand private businesses are actually operating, along with more than 70 thousand business households. This sector contributes about 31% of GRDP, creates jobs for nearly 400 thousand workers, accounting for more than 66% of the province's workforce - becoming the main force in the fields of trade, services, and supporting industries.

However, in addition to the achievements, frankly admitting that there are still shortcomings. Specifically, the majority are small and micro enterprises, with weak management capacity and competitiveness, limited technological innovation, and lack of chain linkage. Many enterprises face difficulties in accessing land, credit capital, high-quality labor and support policies...

Resolution No. 68, issued at this time, is a clear and drastic policy from the Central Government and the synchronous participation of the entire political system. The Provincial Party Committee and the Provincial People's Committee promptly issued an action plan, clearly defining the goals for the private economic sector by 2025. Specifically, the average growth rate of the private economic sector will reach 12 - 13%/year; the scale of GRDP in the private economic sector will double compared to 2025, accounting for about 35 - 40% of GRDP at current prices of the province; creating jobs for about 70% of the total number of workers in the economy; the average labor productivity growth rate in the private economic sector will reach about 13 - 15%/year; the State budget revenue in the private economic sector will increase by an average of about 14 - 15%/year.

Actively investing in technological innovation, Cosmos Company Limited (Khai Quang Industrial Park) has become a supplier of mechanical components for many automobile and motorbike manufacturers. Photo: Chu Kieu

In the new context, how will Vinh Phuc implement Resolution No. 68 to create a launching pad for the private economic sector to develop strongly, effectively and sustainably?

Immediately after Resolution No. 68 was issued, the Provincial Party Standing Committee directed the urgent development of an action plan to implement the resolution, defining a vision to 2045, goals to 2030 and 8 groups of tasks and breakthrough solutions.

In particular, the province clearly identified 4 "pillars" that must be synchronously implemented to perfect institutions and reform procedures to reduce costs and risks for businesses. Developing infrastructure, land funds, credit, and human resources to expand development space for the private economy. Encouraging innovation, digitalization, and greening to elevate private enterprises. Connecting and protecting businesses to create a transparent and safe business environment.

The province will also issue specific financial mechanisms to support small and medium-sized innovative start-up enterprises, supporting industry enterprises, high-tech agriculture, green enterprises, etc., which will create leverage to help private enterprises not only develop in quantity, but also truly improve in quality, and have the ability to "reach out to the ocean".

According to you, what should private enterprises in Vinh Phuc do to make good use of policy mechanisms and truly become the pillars of the province's economy?

Private enterprises are the central subject in the process of realizing Resolution No. 68. If the government is the "institutional support", then enterprises are the "future drivers" of the provincial economy. Therefore, Vinh Phuc private enterprises need to proactively update policies, not passively wait for support, but actively grasp information, participate in dialogue, and connect policies. Technology transformation - digitalization - greening - improving internal strength, competitiveness, taking the lead in transforming business models. Professionalizing governance - Standardizing processes, transparent finance, building a sustainable corporate culture. Collaborating in chain linkages - Don't go it alone. Cooperate with FDI enterprises, the state, and partners to grow together. Proactively criticize policies - Contribute ideas, recommendations, and share difficulties responsibly, so that the State can adjust them closely to reality.

Vinh Phuc province always accompanies and creates the most favorable conditions for the development of the private economy. However, the main "leverage" must still come from the great aspirations, innovative thinking and steadfast actions of the enterprises themselves. If that can be done, the private economic sector will soon become the "development pillar" of Vinh Phuc's economy in the next decade.

Thank you very much, comrade!

Van Cuong (performed)

Source: http://baovinhphuc.com.vn/Multimedia/Images/Id/129334/Co-hoi-kinh-te-tu-nhan-vuon-len-tam-cao-moi