Large private business force

On the morning of September 21st, at the Government Standing Committee's meeting with businesses on solutions to contribute to the country's socio-economic development, Minister of Planning and Investment Nguyen Chi Dung stated that the success of businesses is also the success of the country.

Prime Minister Pham Minh Chinh chaired a meeting of the Government Standing Committee with businesses to discuss solutions contributing to the socio -economic development of the country. (Photo: Nhat Bac)

The conference was chaired by Prime Minister Pham Minh Chinh and was attended by representatives from 12 major private corporations nationwide.

According to the Minister of Planning and Investment, in nearly 40 years of implementing the reform policy, with the correct guidelines and directions of the Party and State, Vietnam currently has more than 930,000 operating enterprises, of which 98% are small and medium-sized enterprises, approximately 14,400 cooperatives and more than 5 million business households.

In 2023, the private sector contributed approximately 46% of the Gross Domestic Product (GDP), generated about 30% of state budget revenue, and employed 85% of the workforce.

Among them, a large force of private enterprises has emerged, accumulating sufficient capacity in terms of capital scale, technological level and corporate governance, with brands in regional and global markets, becoming an important driving force of the economy, such as Vingroup, Thaco, Hoa Phat…

However, reporting at the conference, Minister Nguyen Chi Dung acknowledged that the business community in general still faces many difficulties and challenges; large enterprises still have many obstacles and limitations; they have not fully exploited their potential and have not fulfilled their pioneering and leading role as expected.

Minister Nguyen Chi Dung stated that the production and business activities of the enterprise sector in general, and large-scale enterprises in particular, are still subject to many adverse impacts from objective circumstances, geopolitical conflicts, and disruptions in supply chains and input materials.

In addition, the institutional and legal framework still has some obstacles and shortcomings. The decentralization, delegation of power, and reduction of some administrative regulations and procedures have not been thorough.

Furthermore, although a group of medium and large enterprises has emerged, they have not yet truly become the driving force of the economy as expected.

"The development of our country's business community is still in its infancy compared to other countries in the region and around the world. We have not yet accumulated much capital, knowledge, technology, experience, or business tradition."

The majority of businesses in the economy are small and medium-sized, lacking core technologies and sufficient resources to digitize and green their operations. The proportion of businesses involved in the manufacturing and processing sector remains limited.

"The operations of large enterprises are still relatively independent, and their linkages, spillover effects, and leadership are not yet clearly evident, as the proportion of small and medium-sized enterprises (SMEs) participating in the supply chains of large domestic and FDI enterprises remains low. Large enterprises have not fully fulfilled their pioneering role in leading the development of SMEs, as well as the economy," Minister Nguyen Chi Dung emphasized.

Minister of Planning and Investment Nguyen Chi Dung at the Government Standing Committee meeting with businesses on solutions contributing to the socio-economic development of the country. (Photo: Nhat Bac)

According to the Minister, by the end of 2023, the total assets of the large private enterprises attending today's conference reached approximately 70 billion USD. Mobilizing this asset base, along with technology, knowledge, management expertise, and high-quality human resources from these enterprises, provides a significant resource for the economy, contributing to ensuring the self-reliance of the national economy.

The head of the Ministry of Planning and Investment said: "Therefore, today's conference is like the Dien Hong Conference for the private business sector, where the Government and businesses can exchange and discuss major issues of the country, including the role of large enterprises."

At the same time, Minister Nguyen Chi Dung also urged the large business community to proactively take the lead in major, difficult, and new tasks, solving national-level problems to create momentum for economic development and create room for the development of small and medium-sized enterprises in other sectors.

Furthermore, in addition to business activities aimed at generating revenue and profit, large enterprises need to collaborate with large state-owned corporations and conglomerates to invest in new areas of the Fourth Industrial Revolution, meeting the requirements of shifting towards green development trends; and participate in major national projects...

According to the Minister, large enterprises need to play a pioneering role in innovation and digital transformation; transfer technology, proactively form joint ventures and partnerships, guide and lead, and create opportunities for small and medium-sized enterprises to participate as subcontractors and develop together along the value chain.

"The government wants businesses to demonstrate a pioneering and proactive spirit, working together with the government to successfully achieve socio-economic development goals. The success of businesses is also the success of the country," Minister Nguyen Chi Dung affirmed.

Source: https://baoquocte.vn/luc-luong-doanh-nghiep-tu-nhan-lon-dong-luc-quan-trong-cua-nen-kinh-te-viet-nam-287139.html