By 2030, Vietnam strives to have at least 1 million more businesses.

In Resolution No. 10/2017, Vietnam expected to have 1 million enterprises by 2020 and this number will increase to 1.5 million this year. However, currently the whole country only has nearly 1 million enterprises, about two-thirds of the set target.

Workers work at Polaris Garment and Sports Accessories Manufacturing Company, Tan Phu District (Ho Chi Minh City).

In Directive No. 10 dated March 25 on promoting the development of small and medium enterprises, Prime Minister Pham Minh Chinh said that this business sector needs to increase in quantity, quality, scale, as well as its contribution to the economy . Accordingly, Vietnam aims to have at least 1 million more businesses by 2030.

The private sector plays an important role in the economy, contributing about 51% of GDP and more than 30% of total budget revenue, according to 2023 data. However, the majority of this sector is still small and medium-sized enterprises, accounting for 98%. They face many barriers in expanding their scale and improving their international competitiveness.

Therefore, the Prime Minister requested agencies to prioritize resources to support the development of small and medium-sized enterprises, focusing on innovation, improving competitiveness to participate in value chains, digital transformation and green transformation, developing new business models and increasing technology application.

"Ministries and localities must take people and businesses as the center to proactively support and resolve problems," the Prime Minister requested, adding that this must be done in the spirit of "not saying no, saying difficult things, or criminalizing economic and civil relations."

According to Decree 80/2021, a small enterprise is defined as one with a total capital of less than VND 20 billion in the fields of agriculture, industry, and construction; VND 50 billion in the field of trade. A medium-sized enterprise has a maximum capital of VND 100 billion.

According to Dr. Le Duy Binh, Director of Economica Vietnam, among the 940,000 operating enterprises, the proportion of medium-sized enterprises is equivalent to that of large enterprises, only 1.5%; the rest are small and micro. The above structure is "unusual and worrying".

Meanwhile, in economies such as Japan, South Korea, and Taiwan (China), the proportion of medium-sized enterprises is at 10-30%. The phenomenon of "lack of medium-sized enterprises", according to Mr. Binh, makes Vietnam lack a successor force for the class of large enterprises.

In order for the small and medium-sized enterprise sector to grow, one of the important tasks stated in the Prime Minister's Directive is to perfect policies, reform administrative procedures and create a favorable and equal investment and business environment.

He requested ministries, sectors and localities to reduce at least 30% of the time spent on procedures, compliance costs and unnecessary business conditions this year. Along with that, State management must shift from pre-inspection to post-inspection, combined with increased inspection and supervision.

The Ministry of Finance is assigned to find solutions to increase loan disbursement from the Small and Medium Enterprise Development Fund, in order to create a channel for capital mobilization at reasonable costs for businesses. This agency must also promptly complete regulations and propose a legal framework for the management and development of digital assets, crypto assets, and cryptocurrencies and submit them to the Government in March.

The Prime Minister also assigned the State Bank to have solutions to prioritize credit in production and business sectors, traditional economic growth drivers (consumption, investment, export) and new growth drivers (digital transformation, green transformation, circular economy, science, technology and innovation).

In addition to institutions and credit, the Prime Minister requested ministries, branches and localities to support training high-quality human resources for small and medium enterprises.

According to VnExpress

Source: https://baobacgiang.vn/den-2030-viet-nam-phan-dau-co-them-1-trieu-doanh-nghiep-postid414880.bbg