Car assembly at Hyundai Thanh Cong Automobile Factory (Gian Khau Industrial Park, Ninh Binh ). (Photo: LE DO)

In the article "Private economic development - a lever for a prosperous Vietnam", General Secretary To Lam positions the mission of the private economic sector in the Vietnamese economy. From there, he proposes a comprehensive and concise framework for economic development thinking in general and the private economic sector in particular.

Positioning the mission of the private economy

First of all, the General Secretary emphasized the need to stabilize the macro economy, because only when the macro economy is stable can the economy develop and then businesses can predict the market, calculate long-term to make investment decisions. In the framework of development thinking, General Secretary To Lam mentioned the legal system with all the keywords that need to be removed to build a favorable and safe business environment. That is to ensure the freedom of business, the right to own property of private enterprises, unify the viewpoint that "everyone has the right to freely do business in industries that are not prohibited by law"... This is very necessary for entrepreneurs and businesses to feel secure to focus on investment, production, business, and limit legal risks. "Peace of mind" is the keyword that General Secretary To Lam mentioned many times in the article, only when they feel secure and have confidence, then will people devote all their wealth and creativity to investment and development.

Not only is it a way to acknowledge and record the development of the private economy in the economy, General Secretary To Lam's thinking about the private economy is also a "dynamic" view, that is, a comprehensive view of untapped potential and points out the barriers that are hindering the development of this economic sector. Not only facing barriers in accessing land resources, credit capital, high-quality human resources, the private economic sector also faces many difficulties in administrative procedures, legal risks, disadvantages in preferential policies, etc.

That is the important reason why many private enterprises "cannot grow". In the process of expanding and developing their business, at turning points when there are business opportunities, they cannot access land, cannot mobilize large enough capital, cannot grasp and own suitable and modern enough technology to take advantage of business opportunities and make a breakthrough and develop. With such an approach, the General Secretary affirmed that it is necessary to thoroughly re-orient the viewpoints and perceptions in the entire political system about the role of the private economy as the leading important driving force of the country. At the same time, there should be a mechanism to encourage private enterprises to participate in strategic areas, develop important infrastructure, spearhead industries and energy security, such as high-speed railway projects, urban railways, digital infrastructure, etc.

Which solution group to start with?

Vietnam’s private economy consists of two sectors. One is enterprises registered and operating under the Enterprise Law and other economic organizations (credit institutions, securities, notaries, etc.). The second sector is individual business households, divided into two parts: Agricultural, forestry, and fishery production households and non-agricultural production and business households.

Currently, the private economic sector contributes about 50% of GDP; 56% of total social investment; 28-30% of total export turnover; creates more than 80% of social jobs. However, the private economy is mainly small, micro enterprises and individual business households. Regarding the type of enterprise, as of December 31, 2024, the whole country has about 980 thousand operating enterprises. The number of newly established enterprises is gradually decreasing, while the number of enterprises withdrawing from the market has increased rapidly in recent times, causing the annual growth rate of enterprises to decrease sharply. Regarding the form of family business households, the whole country has about 5.2 million business households, operating mainly in large cities. With the above scale and characteristics, the production and business efficiency and integration capacity of Vietnamese private enterprises are still low. Although in recent years, Vietnam has seen the emergence of a group of large-scale national enterprises, there are still very few and no regional and international-scale enterprises/economic groups.

After the Covid-19 pandemic and the slowdown in the business environment reform process, Vietnamese enterprises are in the most difficult period, especially the private economic sector. To activate the private economic momentum, General Secretary To Lam pointed out seven groups of solutions that need to be focused on implementing. The next important issue is who will do it, and how to prioritize implementation to ignite the desire for business, promote the development of the private economic sector as a lever for a prosperous Vietnam.

Perhaps we should start with solutions to restore the confidence of the private sector through strong reforms of the business environment. Although Vietnam's business environment has undergone many reforms and improvements over the past decades, there are still many major shortcomings. Solution groups must focus on resolving institutional bottlenecks, gathering legal regulations and enforcement methods to create a business environment where businesses have the freedom to invest and do business; are guaranteed property rights, have equal business opportunities and access to resources, and have low compliance costs... In addition, it is necessary to form policies to reduce costs, increase profits and income... to encourage businesses to expand investment and develop business in accordance with the State's goals.

According to nhandan.vn