Developing the private economy and institutional reform are the most effective measures.

(Dan Tri) - According to experts, good institutional reform that meets the needs and aspirations of people and businesses is the cheapest but most effective measure to develop the private economy.

On the afternoon of May 9, the Government Electronic Information Portal held a discussion "For the private economy to break through according to Resolution 68 - Things to do immediately".

The Politburo previously issued Resolution 68, affirming that the private economy is the most important driving force of the economy, a pioneer in the development of science and technology and innovation. The Government is also drafting a National Assembly Resolution on a number of specific mechanisms and policies for the development of the private economy.

Mr. Phan Duc Hieu, a National Assembly delegate and economic expert, commented that the birth of Resolution 68 is necessary and meaningful. The messages in the resolution are very clear and strong, going straight to the problems of the private economic sector, solving long-standing obstacles.

3 important milestones in the process of private economic development

Mr. Hieu pointed out 3 important milestones in the development of the private economy.

The first is the period 1978-1990, when Vietnam shifted from the view that the private economy was a reformed and unrecognized component to being recognized and allowed to operate in certain industries and fields according to regulations. Private enterprises in this period still faced many difficulties despite their positive contributions to socio-economic activities, providing products and services.

The second milestone was the birth of the Enterprise Law in the period of 1999-2000, changing Vietnam's perspective on the private sector. Previously, it could take from one to several years for a business to be established with strict conditions, but after 2000, establishment was easy, could be calculated in days, hours.

Mr. Phan Duc Hieu (Photo: VGP).

The third milestone, according to Mr. Hieu, is the issuance of Resolution 68. Mr. Hieu pointed out the breakthroughs compared to previous changes.

The first is to recognize the private economic sector by granting business rights and reforming administrative procedures, mainly at the level of market entry, to facilitate market entry...

Next is increasing the level of protection. "We see that handling the responsibility of the private economic sector in a non-criminal direction has greatly reduced the risks for this sector," Mr. Hieu said.

In addition, it is about unlocking resources by helping this area access resources such as land, production and business premises, capital, human resources, etc.

"This will be the third milestone to help change the quality of the private economic sector, to meet the needs of the country's economic development goals for the 2030-2045 period," Mr. Hieu said.

Low participation rate of private enterprises in global value chains

Ms. Bui Thu Thuy, Deputy Director of the Department of Private Enterprise and Collective Economy Development (Ministry of Finance), said that in the past, state-owned enterprises and FDI enterprises were often given priority over private enterprises, especially in accessing credit. "There was a period when state-owned enterprises were given credit and could borrow capital without collateral, while private enterprises had great difficulties," Ms. Thuy said.

However, Resolution 68 clearly affirms the requirement for equality between economic sectors in business opportunities, access to resources... She emphasized: "This will not stop at the resolution, it will be institutionalized with specific solutions. If there is still discrimination, the person who implements it must be held responsible."

The reason the Politburo emphasizes the viewpoint of developing the private economy quickly, sustainably and effectively - both an urgent task and a long-term strategy - is because currently, the FDI sector contributes about more than 20% of GDP; the State-owned enterprise sector is equivalent. Meanwhile, the domestic private economy accounts for more than 50%.

If the GDP growth target for 2025 is 8% and beyond is double-digit growth, the role of the private economy is extremely important.

However, Ms. Thuy noted that the number of private enterprises has increased, but most of them are still small, have weak competitiveness, and a low participation rate in the global value chain (under 20%), while 70% of export value still belongs to the FDI enterprise group.

"Therefore, the development orientation must be fast, strong but sustainable, meaning not only solving immediate difficulties but also ensuring a long-term role, working hand in hand with the State," said a representative of the Ministry of Finance.

Ms. Bui Thu Thuy (Photo: VGP).

In response to the opinion that the root of the problem in developing the private economy is institutional reform, Mr. Phan Duc Hieu said that if institutional reform is good and meets the needs and aspirations of the people and businesses, this is the cheapest reform measure but brings the greatest efficiency.

He also believes that institutional reform is the easiest in theory. "In practice, there will be obstacles. The reality of institutional reform in our country has proven that it is not necessary to have strong support in terms of resources to create a breakthrough, but only strong institutional reform can create a breakthrough," he said.

"Institutional reform will be the most effective, fairest, least costly and most feasible measure," he emphasized.

Source: https://dantri.com.vn/kinh-doanh/phat-trien-kinh-te-tu-nhan-cai-cach-the-che-la-bien-phap-hieu-qua-nhat-20250509173402332.htm