"Unleashing" the private economy

Institutional nudge

One of the important breakthroughs of Resolution 68-NQ/TW is the affirmation that the private sector is one of the most important driving forces of the economy. This is a major step forward in policy thinking, and at the same time clearly demonstrates the commitment to put the private sector on par with other economic sectors in leading growth, creating jobs and promoting innovation.

Mr. Nguyen Huu Thap, Chairman of the Tuyen Quang Province Business Association, said: The very new point of Resolution 68 is that it has correctly recognized the role of the private economy in the current economic structure. Up to now, although contributing up to 40% of GDP and more than 80% of the workforce, this sector still faces many barriers in accessing land, capital, market information as well as administrative procedures.

This Resolution is an important institutional step to remove those obstacles, creating momentum for the private economy to develop more systematically and sustainably. After the Resolution was issued, on May 12, the Prime Minister signed Official Dispatch No. 63/CD-TTg, requesting ministries, branches and localities to urgently develop an action program for implementation. This quick participation demonstrates a strong determination to put the spirit of reform into practice, meeting the expectations of the business community.

Chairman of the Tuyen Quang Province Business Association Nguyen Huu Thap proposed to abolish the procedure for approving investment policies for domestic investors.

In addition to the orientation for private sector development, Resolution 68 also requires comprehensive innovation in the governance of state-owned enterprises. Promoting decentralization, clearly defining responsibilities and improving the efficiency of public investment capital use will help improve the competitive environment, creating conditions for economic sectors to develop together.

In Tuyen Quang, the private economic sector currently has more than 2,890 enterprises, with a total registered capital of over VND37,000 billion, creating jobs for about 48,000 workers. Each year, this sector contributes over 60% of the total local budget revenue. These figures are clear evidence of the increasingly important role of private enterprises, and at the same time show the urgent need to continue reforming, creating conditions for this sector to develop more stably and sustainably in the coming period.

Expectation to be "untied"

Mr. Nguyen Phuong Nam, Chairman of the Board of Directors of Tuyen Quang Forestry and Minerals Joint Stock Company, said that the biggest obstacle for businesses at present is legal procedures related to land and investment adjustment. Accessing land, implementing procedures on investment policies, planning, land lease, etc. is still very complicated, especially for small, medium and start-up enterprises. Many projects have land, but when it comes to adjusting investment policies or land use purposes, the procedures are even more difficult. There are some documents that have been delayed for several years and are still not completed, causing businesses to lose investment opportunities. He hopes that Resolution 68 will promote strong administrative reform, make processes transparent, and create conditions for businesses to be more flexible in project implementation.

Mr. Pham Quang Hiep, Director of Hiep Phu Company Limited (Tuyen Quang City) also hopes that Resolution 68 will bring about substantial changes in removing institutional barriers, especially in land procedures and public investment. According to him, many enterprises still have to negotiate compensation and contribute capital with the people, a cumbersome and lengthy process. Even projects that are not involved in disputes are still "suspended" because they cannot complete legal procedures. Mr. Hiep also reflects the situation that some projects using budget capital, although completed and put into use, have not been accepted and handed over, affecting the interests of enterprises. He hopes that management agencies will operate more drastically after Resolution 68.

The Tuyen Quang Provincial Business Association has just sent a petition to the leaders of the Party and the State, proposing to amend the Investment Law 2020 to abolish the approval procedure or adjust the investment policy for domestic investors, in the context that the private economy is established as "the most important driving force of the national economy". This is not only the desire of the Tuyen Quang business community but also the common voice of businesses nationwide, in order to contribute to promoting an increasingly favorable and transparent investment and business environment for the sustainable development of the economy.

Another highlight is that Resolution 68 clearly mentions the orientation of developing the collective economy and cooperatives in a modern and effective direction. Ms. Pham Thi Hong, a member of Hong Phat Agricultural and Service Cooperative (Chiem Hoa), shared: “The Resolution has placed the role of the collective economy in a new position, encouraging innovation, applying technology, building brands, and expanding markets. We hope to have more preferential credit policies, trade promotion and technical support so that the cooperative can reach out to the export market in a sustainable way.”

The business community expects that Resolution 68 will not only stop at commitments on paper, but will be materialized by practical, effective and consistent actions. When the policy is put into practice strongly, it will be the driving force for businesses to confidently invest, expand production and contribute more to the sustainable development of the locality.

Source: https://baotuyenquang.com.vn/coi-troi-cho-kinh-te-tu-nhan-211924.html