The most important driving force of the national economy

BHG - 13 days after the Politburo issued Resolution 68 on private economic development, the National Assembly issued Resolution 198 on a number of special mechanisms and policies for private economic development. This shows the strong determination of the Party and State to make the private economy the most important driving force of the national economy.

BHG - 13 days after the Politburo issued Resolution 68 on private economic development, the National Assembly issued Resolution 198 on a number of special mechanisms and policies for private economic development. This shows the strong determination of the Party and State to make the private economy the most important driving force of the national economy.

Private economy increasingly asserts its position

At the summary and award ceremony of the Vietnam Science and Technology Innovation Award 2024 held in Hanoi recently, the project "Application of advanced technology of the Czech Republic in the production of high-quality Buckwheat Beer, contributing to the economic development and sustainable tourism in the Dong Van Karst Plateau Global Geopark" by author Tran Duy Hien, Director of Ha Giang Highlands Joint Stock Company, Dong Van town (Dong Van) was honored to win the Third Prize. This is the first project in Ha Giang to comprehensively apply advanced equipment and technology in a closed process, producing high-quality fresh beer from barley and buckwheat seeds grown on the Dong Van Karst Plateau. Buckwheat Beer is also a typical OCOP product of Dong Van district, initially affirming its brand.

An Chang Retreat & Spa Resort, Phuong Thien Commune (Ha Giang City) is invested by a private business household. Photo: An Giang

Director Tran Duy Hien, the first person to turn buckwheat seeds on the Dong Van Stone Plateau into raw materials to produce premium beer, said: With the encouragement and support of agencies, departments, and branches, and the facilitation and support of local authorities with open and quick mechanisms, policies, and procedures, in a short time of implementation, the Company has had the first products processed from locally available raw materials. Before applying product processing technology, buckwheat seeds did not have high economic value. Buckwheat is a wild plant that provides flowers for tourism and seeds for regular food, but now its seeds are not only used to produce beer, but also to make famous fragrant and delicious cakes that are only available in the Ha Giang Stone Plateau.

The bold investment, daring to think, daring to do of Ha Giang Highlands Joint Stock Company has brought economic efficiency, increasing income for more than 350 farming households in the region (10-20 times higher than growing corn). Director Hien added that Buckwheat Beer has established a position in the market, in the near future the Company will continue to expand the intensive cultivation area of ​​250 hectares, in addition to providing beer production seeds, barley by-products, Buckwheat is a source of raw materials for the production of organic microbial fertilizers, animal feed for the high-quality yellow beef chain... This is just one of the enterprises in the province that has boldly applied science and technology to the production process, moving towards getting rich from the typical local products. It is known that in the province there are currently nearly 4,400 enterprises and affiliated units with a total registered capital of over 38,000 billion VND. Every year, the business community contributes over 1,300 billion VND to the budget revenue and about 60% of GDP in the province. The province's businesses, together with nearly 1 million businesses and more than 5 million business households nationwide, operate in the economy, contributing about 50% of GDP, more than 30% of total state budget revenue and employing about 82% of the total workforce, and are an important force promoting innovation, improving labor productivity, increasing national competitiveness, contributing to hunger eradication, poverty reduction, and stabilizing social life. Many businesses and businessmen are growing stronger, the entrepreneurial spirit, the spirit of innovation and the desire to grow stronger, social responsibility, ethics, and culture are spreading more and more widely...

There are still barriers

In 2023, HIDDEN LANDS Trading, Service and Tourism Company Limited, a start-up enterprise, proposed to invest in the Hoa Thuan glass bridge project in Mich A, Mich B and Hoa Bac villages, Thuan Hoa commune (Vi Xuyen) with a total investment of over 200 billion VND. Ms. Bui Phuong Thao, Director of the Company, said: The project is expected to be very high, creating an attractive tourism product, attracting tourists to our province. Because the Company is the first unit to propose the investment policy to build a glass bridge combined with Ziplai - a type of experiential tourism, creating a sense of adventure, currently there is no similar type invested in the province.

The proposed location for the construction of the Hoa Thuan glass bridge is included in the planning of tourist destinations of the Department of Culture, Sports and Tourism, in accordance with the local socio-economic development planning and the general planning of Thuan Hoa commune. The project is not in the field of land acquisition by the State, the Company has signed an agreement to contribute capital with 21 hectares of production forest land, in accordance with the provisions of law and requested to lease about 4,000 m2 of land along the traffic road under State management.

Song Chay 3 Hydropower Plant (Hoang Su Phi) contributes significant revenue to the local budget. Photo: Tien Chien

However, from 2023 to now, the Company has submitted documents to the provincial authorities and branches 3 times and has not yet been approved by the competent authority for the investment policy by the Provincial People's Committee. According to Ms. Bui Phuong Thao, the main reason why the investment policy has not been approved after 2 years is due to legal problems. During the meetings, the competent authorities said that to be approved for investment, there must be a land use plan; to be able to lease land and receive capital contributions in the form of land use rights, it must be approved by the Provincial People's Committee and must have a land use plan, which must be submitted by the Department of Agriculture and Environment; to supplement the land use plan, it must have investment approval from the Provincial People's Committee or additional instructions...

These regulations make businesses worry, run to many levels, many sectors but still cannot resolve. "This delay causes businesses to incur more costs and lose many investment opportunities" - Ms. Bui Phuong Thao sadly said!

In reality, the concerns of HIDDEN LANDS Trading, Service and Tourism Company Limited are not uncommon and have been pointed out by the Party and the State: The private economy is still facing many barriers that hinder development, has not yet made a breakthrough in scale and competitiveness; financial potential and management level are limited; most have low technological capacity and innovation; labor productivity, operational efficiency and competitiveness are not high...

There are many reasons for this situation, but mainly due to: The mindset and awareness of the position and role of the private economy in the economy are not adequate and do not keep up with development requirements; institutions and laws are still entangled and inadequate; leadership and direction have not received due attention. The private economy still faces many difficulties and obstacles in accessing resources, especially capital, technology, land, resources and high-quality human resources.

Determined to remove

With the goal of striving by 2030, the private economy will be the most important driving force of the national economy; a pioneer in science and technology development, innovation and digital transformation; striving to have 2 million enterprises operating in the economy, 20 enterprises operating/thousand people; having at least 20 large enterprises participating in the global value chain. The average growth rate of the private economy is about 10-12%/year, higher than the growth rate of the economy; contributing about 55-58% of GDP, about 35-40% of total state budget revenue, creating jobs for about 84-85% of the total workforce; labor productivity increases by an average of about 8.5-9.5%/year. By 2045, Vietnam's private economy will develop rapidly, strongly, sustainably, proactively participating in the global production and supply chain; have high competitiveness in the region and internationally; strive to have at least 3 million enterprises operating in the economy; contribute about 60% of GDP... this requires great determination of the entire political system, especially the enthusiastic response of the business community and entrepreneurs - important subjects of the national economy.

In order to achieve the set goals, in terms of state management, this year we will complete the review and elimination of unnecessary business conditions, overlapping and inappropriate regulations that hinder the development of private enterprises; cut at least 30% of administrative procedure processing time, at least 30% of legal compliance costs, at least 30% of business conditions and continue to cut them strongly in the following years. Strongly deploy the provision of public services to enterprises regardless of administrative boundaries. Shift from public administration, mainly management to service and development creation, focusing on people and enterprises; strongly shift from pre-inspection to post-inspection associated with strengthening inspection and supervision.

Talking to us, a business leader operating in the mining sector said: The tasks and solutions set out in Resolution 68 of the Politburo and Resolution 198 of the National Assembly are really strong enough to create a big boost for the private economy. Private enterprises and traders have high expectations when the State exempts corporate income tax for a period of 2 years and reduces 50% of the tax payable for the next 4 years for income from start-up and innovation activities; exempts corporate income tax for small and medium enterprises for 3 years from the date of being granted the first Business Registration Certificate... The important thing is to have a mechanism to closely monitor the implementation of all levels and sectors so that the resolution can really come into life, avoiding the situation of "hot above, cold below".

Thien Thanh

Source: https://baohagiang.vn/kinh-te/202506/dong-luc-quan-trong-nhat-cua-nen-kinh-te-quoc-gia-60733bf/