Private sector remains driving force for economy

HÀ NỘI — The private business sector has been an important driving force of the economy and is expected to raise GDP contribution to  五 五 per cent by  二0 二 五, a top economist told the second Private Economic Forum  二0 二 三 in Hà Nội on Sunday.

Cấn Văn Lực, chief economist at BIDV and member of the National Financial and Monetary Policy Advisory Council, told the event, organised by the Việt Nam Private Business Association (VPBA) that after nearly  四0 years of renewal, the private economic sector has had many strong brands, making an important contribution to the country's socio-economic development.

A number of large-scale, multi-industry private economic groups have been formed, which are capable of competing in the domestic and international markets.

In terms of quantity, the private sector accounts for about  九 八 per cent of the total number of over  八00,000 operating enterprises; accounting for about  八 五 per cent of the total number of employees in the country, including the individual economic sectors.

In particular, the private sector makes a large contribution to the State budget rising from  一 三. 八 八 per cent in  二0 一 六 to  一 八. 五 per cent of total budget revenue in  二0 二 一 and accounts for about  三 五 per cent of total import turnover and  二 五 per cent of total export turnover, nearly seven times higher in terms of import and  一0 times in export compared to the State-owned enterprise sector.

Capital from the private sector also makes a great contribution to socio-economic development, increasing the social investment capital from  五 一. 三 per cent in  二0 一 六 to  五 九. 五 per cent in  二0 二 一.

In addition to highlighting the results and contributions of the private sector, Lực and other delegates also pointed out shortcomings and limitations.

Although the private sector contributes a large proportion to the GDP, about  四 六. 四 per cent, the growth rate of the private sector tended to decrease in recent years and failed to reach the target of  五0 per cent by  二0 二0 according to Resolution  一0-NQ/TW.

In addition, the private economy is mainly small and micro-scale, most of which are still household businesses, accounting for  九 四 per cent.

The level of technology, management, financial capacity, product quality and competitiveness are still low.

Industry structure is still unreasonable as well as lack of links with each other and other economic sectors.

The capacity for international economic integration and competition is still limited, and the level of deep participation in regional and global value chains is still low. The private sector, especially private enterprises, always lacks capital.

Chairwoman of BRG Group Nguyễn Thị Nga said that a business that wants to succeed not only needed aspirations and passion, but the business itself needed to have the capacity and careful preparation.

In particular, the businesses must always put people at the centre, which was an important asset for success and development, noted Nga.

They must make efforts to improve the working environment, share information, benefits and responsibilities with employees, and always ensure the interests of employees at the best level, added Nga.

She also said that the entrepreneurial team and each enterprise must be properly, fully and deeply aware of the rights, obligations and responsibilities of their entrepreneurs and businesses in the process of innovation and development of the country.

In addition, it was also necessary to pay special attention to promote digital transformation, invest wisely in the application of information technology to improve the efficiency of business administration at enterprises, she added.

Capital for private enterprises was also a big issue attracting many opinions at the discussion.

Cao Tiến Đoan, Chairman of Thanh Hóa Business Association, said that although the issue of access to capital for private enterprises in recent years had been regulated quite specifically in many legal documents, in fact, the access to capital of enterprises still faced many difficulties and obstacles.

The chairman and a number of businesses suggested that the banking industry promptly solve outstanding problems, helping businesses easily grasp and access capital sources.

Along with that, they asked banks to continue to promote administrative reform, especially improving process, simplifying lending procedures, strengthening the application of information technology in management, analysis and prevention of risks.

Joint stock co妹妹ercial banks should regularly organise training courses to improve professional capacity of staff in charge of credit and loans to advise and support timely, safely and effectively businesses when in need of loans, said Đoan.

In addition, business representatives also reco妹妹ended strengthening inspections and reviews of internal processes and regulations, early warning of potential risks to have timely preventive and handling solutions, helping businesses limit possible damage.

At the same time, there should be a mechanism to closely monitor and inspect the implementation and have strict sanctions to avoid taking advantage of or improperly implementing the loan policy for self-seeking purposes. — VNS