Driving force from private economic development

(Baonghean) - Creating favorable conditions for private enterprises to develop both in quantity and quality is the strongest driving force and also the most important task of the state apparatus at all levels. This policy received special attention from the Party Central Committee (12th tenure) at the 5th Conference.

Workers at Tran Thai Private Enterprise in Quynh Lap Commune (Hoang Mai Town). Photo: Tran To

Along with the innovation process, our Party and State have issued and led the implementation of many important policies and measures to encourage and facilitate the private economy to develop and contribute more to mobilizing social resources for investment in production and business development, economic growth, and solving social problems. Initially, a number of large-scale private economic groups have been formed, operating in multiple sectors, with better competitiveness in the domestic and international markets; the team of entrepreneurs is growing stronger. With nearly 600,000 enterprises, including many private companies, large joint stock companies, with strong brands in the domestic and international markets, the private economic sector currently accounts for 51% of the country's workforce, contributing about 40% of the gross domestic product (GDP) and 30% of the state budget, Vietnam strives to have over 1 million registered enterprises by 2020, many of which have matured and developed, reaching regional and world levels.

Despite their strong growth, most of Vietnam's private enterprises are small-scale, low-tech and slow to innovate; product quality and competitiveness are still low; the ability to connect with other economic sectors and participate in domestic, regional and global production value chains as well as management capacity are still limited. According to VCCI, up to 96% of private enterprises nationwide are small and micro-sized, 2% are medium-sized enterprises and 2% are large enterprises and only use less than 30% of the country's business land area.

At the 5th Central Conference, General Secretary Nguyen Phu Trong suggested that the Central Committee closely follow the Resolution of the 12th National Party Congress and the country's reality, focus on discussing and clarifying, creating high consensus within the entire Party and people on the goals, viewpoints, guiding ideas and major tasks and solutions that need to be thoroughly grasped and implemented so that the private economy can develop more strongly, correctly and healthily, truly becoming an important driving force of the socialist-oriented market economy in our country. This new driving force will increasingly converge and resonate with new awareness and ways of building a new type of production, increasing linkage chains to recreate the foundation of the commodity market in accordance with the needs and advanced consumption standards of the world.

Put the state economic sector on an increasingly equal footing with non-state economic sectors in terms of law and conditions for accessing and using input and output factors of enterprises in healthy competition according to law and market principles; develop and deploy new management and support tools for the private economic sector, shifting from the purpose of "strict management" to "supporting" enterprises with policy orientation, market information and financial incentives, as well as the spirit of industry, product, location..., not according to each specific enterprise, project or ownership nature.

Reform, strengthen the capacity and effectiveness of economic and administrative institutions and sanctions, as well as the national and local judicial apparatus to effectively protect the interests of the State, enterprises, entrepreneurs and workers, develop the social security system, risk prevention system, early warning of risks and promptly resolve socio-economic shocks caused by the process of promoting private economic development and international economic integration.

It is necessary to diversify the methods of mobilization and investment (BOT, BT, PPP...); at the same time, it is necessary to pay attention to the innovation of personnel work in the direction of promoting standardization, professionalization and high responsibility towards enterprises. The State also needs to explore and replicate new and more innovative ways of doing things in state management of enterprises and business; promptly reward and appropriately honor units and individuals with outstanding achievements in management and development of the private economy; encourage the spirit of entrepreneurship, innovation, improve product competitiveness, ensure sustainable development; promote the role of socio-political organizations and associations, professions in the private economic sector as well as in each enterprise.

The comprehensive innovation and proactive international integration process requires a change in thinking, creating new momentum for development in the spirit of creation and comprehensively promoting the role of enterprises and the private sector. On that basis, reorganize production according to the value-added chain, deep processing, on the basis of promoting advantages associated with the 4.0 industrial revolution. The new policies of the Party expressed in the contents of the 5th Central Conference are fundamental changes in quality to encourage the development of the private economy, creating momentum for our country's socio-economy to transform and firmly integrate into the international community for the goal of "rich people, strong country, democracy, fairness, civilization".

Dr. Nguyen Minh Phong