The new growth model opens a "window of opportunity" for small and medium-sized enterprises.

The need to establish a new growth model, as outlined in the Report at the 14th National Congress of the Communist Party of Vietnam, is of particular importance to the small and medium-sized enterprise (SME) sector. This presents both a significant challenge and an opportunity for SMEs to upgrade their position, participate more deeply in supply chains, and contribute more effectively to economic growth. The People's Army Newspaper had a conversation with Dr. Mac Quoc Anh, Vice President and General Secretary of the Hanoi Small and Medium-sized Enterprise Association, about the opportunities for SMEs under this new growth model.

Reporter (R): Sir, what is your assessment of the requirement to shift from a "management" mindset to a "development-creating" mindset, from direct state intervention to a state focused on designing institutions, creating an environment, and ensuring legal discipline, as stated in the Party's 14th Congress Report?

Dr. Mac Quoc Anh: In my opinion, the requirement to shift from a "management" mindset to a "development-oriented" mindset, emphasized by the 14th Party Congress, is not merely an adjustment in operational techniques, but a fundamental shift in the philosophy of national development, reflecting the maturity of institutional thinking in the context of Vietnam's economy entering a new stage of development.

The "development-oriented state" mindset established by the 14th National Congress means that the state does not replace the market, nor does it interfere administratively in production and business activities. Instead, it focuses on three core functions: designing transparent institutions, creating a healthy competitive environment, and ensuring legal discipline and order. This is a prerequisite for businesses to confidently invest long-term, innovate technology, and expand their markets.

Dr. Mac Quoc Anh, Vice President and General Secretary of the Hanoi Small and Medium-Sized Enterprise Association.

A significant step forward in the spirit of the 14th Party Congress is the placement of the State in the role of "institutional facilitator." This requires a stable and predictable policy system; simplified administrative procedures with low compliance costs; and substantive protection of property rights and freedom of business. For small and medium-sized enterprises (SMEs), this is crucial, as they lack the resources to keep up with unpredictable policy changes or bear unnecessary legal risks.

PV: Sir, the Report of the 14th Party Congress also emphasized the need to innovate the growth model. So, how should small and medium-sized enterprises (SMEs) change to adapt to this direction?

Dr. Mac Quoc Anh: Reforming the growth model in the spirit of the 14th Party Congress sets a very clear requirement: Growth cannot continue to rely primarily on capital, cheap labor, and resource exploitation, but must shift to being based on productivity, innovation, science and technology, and the quality of human resources. In this context, with their overwhelming proportion in the economy, small and medium-sized enterprises (SMEs) cannot remain uninvolved.

First and foremost, small and medium-sized enterprises (SMEs) need to change their development mindset. While previously the main goals were "survival" and "maintaining cash flow," in the coming period, businesses must aim for sustainable development with medium- and long-term strategies. This doesn't mean every business has to become a high-tech enterprise, but rather that each business needs to clearly define its core values, competitive advantages, and position within the value chain.

Secondly, innovating the growth model requires small and medium-sized enterprises (SMEs) to improve their intrinsic productivity. Productivity comes not only from machinery and technology, but also from management, production organization, and the quality of human resources. Many businesses currently operate on a family-run model, lacking standardized processes and financial transparency. This is a major barrier that makes it difficult for businesses to access capital, expand their scale, and participate in the supply chains of large enterprises.

Thirdly, businesses need to proactively participate in linkages and cooperation. In the new growth model, no small business can achieve sustainable development if it stands alone. Participating in industry associations, industry clusters, and regional and global value chains will help businesses share costs, access technology, expand markets, and minimize risks. This is also the most practical way for small and medium-sized enterprises to gradually upgrade their position.

Fourth, businesses must view digital transformation and green transformation as part of their growth strategy, not as a trend or a cost burden. Innovating the growth model doesn't mean all businesses have to make large investments immediately; what's important is having a suitable roadmap, starting with areas that yield clear results such as management, accounting, sales, and logistics.

From the Association's perspective, we believe that innovation in the growth model will only succeed with a two-way partnership: the State creating a favorable institutional framework, and businesses proactively innovating. If businesses maintain a short-term mindset, relying on incentives or protectionism, then no matter how progressive the policies are, opportunities will slip away. Conversely, businesses that proactively adapt will transform the direction set by the 14th Party Congress into a genuine driving force for their own development.

Opportunities for small and medium-sized enterprises to grow.

PV: In the context of digital transformation and the green economy being at the heart of the new growth model, what challenges are small and medium-sized enterprises (SMEs) facing, and what specific support policies do they need, sir?

Dr. Mac Quoc Anh: Digital transformation and green economic development are two important pillars in the development orientation of the 14th Party Congress, but for small and medium-sized enterprises (SMEs), these are also the two biggest challenges today. The first and most common difficulty is the limitation of resources, both financial, human, and management capacity. The majority of SMEs do not have enough capital to invest in new technologies, and it is even more difficult for them to access green solutions, which require relatively high initial costs.

Secondly, there is a lack of information and access to policy. Many businesses do not fully understand where digital transformation or the green economy begins, how to implement it, and what standards they should aim for. Meanwhile, the current support policy system is fragmented and lacks specific guidance, causing businesses to feel confused or hesitant to participate due to fear of risk.

Thirdly, small and medium-sized enterprises (SMEs) face significant difficulties in accessing green finance and digital transformation financing. While preferential credit packages and support funds have been discussed extensively, access requirements remain high, procedures are complex, and small businesses often lack collateral and standardized financial documentation.

Based on that experience, in my opinion, support policies need to be practical, accessible, and focused. First, the State should prioritize "seed" support programs, that is, initial support to help businesses start their transformation, instead of expecting them to undertake a comprehensive transformation right away. For example, support for consulting costs, training, process standardization, and the application of basic management software.

A robust ecosystem supporting businesses needs to be developed, with business associations, research institutes, universities, and technology companies playing a bridging role. The government doesn't necessarily need to do everything for them, but it should commission and create mechanisms for these entities to professionally support small and medium-sized enterprises.

Next, financial policies need to be more flexible, accepting a reasonable level of risk, especially for green and digital transformation projects. If traditional credit thinking remains in place, it will be difficult for capital to flow into the small and medium-sized enterprise (SME) sector.

PV: From the Association's perspective, what do you think is the most important message that the 14th Party Congress sent to the small and medium-sized enterprise (SME) community? How should SMEs act to turn policies into real opportunities?

Dr. Mac Quoc Anh: In my opinion, the most important message that the 14th Party Congress sent to the small and medium-sized enterprise community is: The Party and the State place their trust in the private economic sector, considering businesses as the center of development, but at the same time expecting businesses to proactively innovate, improve their capabilities, and fulfill their social responsibilities.

This is the first time that the spirit of fostering development, innovating the growth model, and promoting the role of private enterprises has been placed within a unified whole, consistent from thought to action. This shows that businesses are no longer in a "request-and-grant" position, but are recognized as development partners of the State.

However, belief always comes with demands. The 14th Party Congress did not advocate for growth at all costs, but emphasized sustainable, inclusive, and responsible growth. This requires small and medium-sized enterprises to change their approach: from chasing short-term profits to building a long-term foundation; from competing on price to competing on quality, reputation, and added value.

To transform policy into tangible opportunities, I believe businesses need to act in three areas. First, they must upgrade themselves: standardizing governance, ensuring financial transparency, and investing in people and technology. Without internal reforms, businesses will find it difficult to take advantage of any opportunities arising from policy.

Secondly, proactive networking is crucial: connecting with associations, government support programs, large businesses, and international partners. In this new context, those who remain outside the network will become increasingly disadvantaged.

Thirdly, businesses should proactively participate in policy critique and collaboration. Businesses should not only be beneficiaries, but also active participants in improving institutions through associations and official dialogue channels. When the voices of businesses are reflected promptly, policies will be more relevant to reality, and businesses will be more responsible for overall development.

From the perspective of the Hanoi Small and Medium-Sized Enterprise Association, we believe that the 14th Congress has opened a very important "window of opportunity." However, opportunities only become a reality when businesses dare to change, dare to invest in the future, and dare to step out of their comfort zones. This is the moment when the courage and vision of the small and medium-sized enterprise community will be tested and affirmed.

Source: https://baolangson.vn/mo-hinh-tang-truong-moi-mo-cua-so-co-hoi-cho-doanh-nghiep-vua-va-nho-5078172.html