Supporting small and medium enterprises - seen from Resolution 68

The Politburo and the Secretariat have just held a national conference to disseminate and implement Resolution No. 68-NQ/TW of the Politburo on private economic development. Resolution 68 was developed and promulgated very quickly under the direction of General Secretary To Lam. After Resolution 68 was promulgated on May 4, within 13 days, the National Assembly and the Government issued 3 resolutions to institutionalize and implement it.

During nearly 40 years of renovation, the private economic sector in Vietnam has developed strongly, contributing greatly to the gross domestic product (GDP), creating jobs, promoting growth, innovation and international economic integration. However, the private economic sector has never been affirmed as in Resolution 68, because this is the first time the Politburo has affirmed that "the private economy is identified as the most important driving force of the national economy".

This viewpoint marks a profound change in strategic awareness of the role of the private sector, from a secondary position to a pillar of development, alongside the state economy and collective economy, forming a solid "tripod" for an independent, autonomous and successfully integrated economy.

Developing the private economy is not only an economic requirement but also a political imperative, aiming to consolidate the foundation of national economic autonomy and deep integration, enhancing competitiveness and adaptability in a volatile world . Resolution 68 not only acknowledges, but also respects and nurtures the entrepreneurial spirit, affirming the role of entrepreneurs as “soldiers on the economic front”. It can be said that this is the most important document ever for the private economy.

Resolution 68 is a big boost for the private economic sector. The resolution has paved the way for institutional reforms, protecting property rights and business freedom, creating a level playing field between state-owned and private enterprises, especially in bidding, access to land, credit, and unlocking socialized resources, especially in digital infrastructure, energy, and logistics, areas where the private sector sometimes faces barriers due to administrative procedures.

The private economic sector, focusing on small and medium enterprises (accounting for about 98%), always plays a very important role in socio-economic development, contributing more than 50% of GDP, 30% of total state budget revenue, creating more than 40 million jobs (accounting for more than 82% of the total number of workers in the economy). However, small and medium enterprises still face many difficulties and challenges to develop quickly and sustainably in terms of quantity, scale, quality and operational efficiency.

Resolution 68 of the Politburo pays special attention to the majority of small and micro enterprises and business households, such as eliminating lump-sum taxes, providing free accounting software, simplifying financial management and providing management training as practical solutions to support them in transforming into more systematic and transparent enterprises. The resolution's financial policies also create more opportunities for women, youth and ethnic minorities to rise up.

For Quang Tri, the whole province currently has 3,473 operating enterprises. In 2024, the private economic sector will pay 1,170 billion VND, accounting for 32% of domestic revenue and 81% of enterprise revenue (including state-owned enterprises and foreign-invested enterprises).

In recent times, the province has also issued many policies, programs, and plans to support business development, investment support, and labor training; organized investment promotion conferences, announced investment incentive mechanisms and policies in the area, publicized provincial planning, district planning, land use planning, construction planning, and new rural planning for businesses to know, and at the same time created a favorable environment for businesses to operate. Support individuals and organizations in completing procedures and documents to establish industrial property rights, promote and expand consumption markets for businesses...

Many enterprises have built up their brands and reputations and have made great contributions to the socio-economic development of the province. Despite the growth in both quantity and quality, the province's private enterprises are more than 91.5% small and micro-sized (of which micro-sized enterprises account for nearly 60%); financial potential and management level are still limited; most of them have low technological capacity and innovation, low labor productivity, operational efficiency and competitiveness; access to capital, land and resources is still difficult.

Therefore, from the guidelines and viewpoints of Resolution 68 and resolutions of the National Assembly and the Government, it is necessary to research and promulgate local mechanisms and policies with strong breakthroughs to develop small and medium-sized enterprises quickly, sustainably, and increase in quantity, quality, scale, and operational efficiency, such as: Prioritizing the allocation of resources to support business development, focusing on supporting small and medium-sized enterprises to start up creatively, improve competitiveness to participate in the value chain; digital transformation, green transformation, development of new business models; promoting technology application, innovation, and digital transformation.

Promote administrative procedure reform, create a favorable and equal investment and business environment for small and medium enterprises. Continue to focus on implementing drastically and effectively tasks and solutions to remove barriers and difficulties, creating conditions to mobilize maximum resources of small and medium enterprises to contribute to economic growth and development.

There are effective solutions to promote lending activities of the Small and Medium Enterprise Development Fund to create a channel for capital mobilization at reasonable costs for small and medium enterprises; and to vigorously implement credit programs and policies for enterprises.

Thoroughly simplify processes, procedures, and documents to support tax incentives and value-added tax refunds for businesses; research and apply post-audit methods so that small and medium-sized enterprises are not affected in terms of cash flow and business operations.

Tung Lam

Source: https://baoquangtri.vn/ho-tro-doanh-nghiep-nho-va-vua-nhin-tu-nghi-quyet-68-194065.htm