Private economic prospects and opportunities for Nghe An enterprises

Attending the seminar, on behalf of the Vietnam Chamber of Commerce and Industry (VCCI), there were Mr. Bui Trung Nghia - Vice President of VCCI; Economic expert, Dr. Nguyen Dinh Cung - Former Director of the Central Institute for Economic Management. Also attending were representatives of provincial departments and branches; representatives of the Ha Tinh Business Association, business associations and nearly 500 enterprises.

Prospects for Vietnam's private economy

At the beginning of the conference, the representative of VCCI Nghe An branch highlighted the significance of this discussion and meeting between businesses and entrepreneurs, aiming to review the contributions of private enterprises in the past time; at the same time, exchange and share to resolve difficulties in the coming time.

Ms. Dao Thi Kim Hoa - Deputy Director in charge of VCCI Nghe An Branch opened the discussion. Photo: Nguyen Hai

With the theme "Prospects of the private economy and the path of integration and development of Nghe An enterprises", expert - Dr. Nguyen Dinh Cung, on behalf of the Organizing Committee, reviewed the changes in policies and positions of private enterprises from 1986 to present, with milestones: in 1990 they were legally recognized, in 2001 they were recognized as a component part of the economy, in 2006 party members were allowed to do private business and in 2017 the private economy became an important driving force of the economy.

Representatives of provincial departments, branches and the business community and entrepreneurs attended the Vietnam Private Economic Prospects Meeting organized by VCCI Nghe An branch. Photo: Nguyen Hai

Corresponding to the above milestones is the growth and increasingly deep participation in the country's economic life; more and more USD billionaires are born and grow from private enterprises. Private enterprises participate in investment, production and business in all regions of the country.

Up to now, our country's private economy includes millions of business households and nearly 900 thousand enterprises, contributing annually more than 50% of GDP and 56% of total social investment. Most of the goods and export turnover come from the private economic sector; the private economy has created 80% of jobs for workers with 10/15 million workers working in enterprises. Private enterprises are increasingly participating in economic activities that used to belong only to state-owned enterprises.

Economist, Dr. Nguyen Dinh Cung - Former Director of the Central Institute for Economic Management. Photo: Nguyen Hai

In addition to the above advantages, entering the integration and development period, the private economy also revealed some difficulties and limitations when it is large in number but not strong, the ability to integrate and compete is poor; development is unstable; the level of science and technology, management capacity is still weak, and it has not taken advantage of the advantages brought by trade agreements. The business situation is fragmented, passive, mainly waiting for the state's policy mechanism.

Opportunities for Nghe An businesses

Also within the framework of the forum, another topic that attracted attention was the current state of the Nghe An business community. Although it is the 4th most populous province in the country with 3.3 million people, its GRDP index ranks 40th out of 63 provinces and cities. The province has nearly 12,000 active enterprises but only accounts for 1.4% of the total number of enterprises in the country; an average of 3.5 enterprises/1,000 people is still low and lower than many provinces. In recent years, although the number of newly established enterprises has increased, the rate of withdrawal from the market is quite high. The province's PCI index is not low but also not high, not enough to attract foreign investors...

In the spirit of open exchange, experts answered questions from businesses and suggested and recommended development directions and opportunities through major directions of the state and Nghe An province for private businesses to grasp, gradually plan production and business, overcome limitations, and strive for sustainable development.

Mr. Pham Van Hoa - Director of Nghe An Department of Industry and Trade, representing departments and branches, spoke to answer the recommendations and proposals of enterprises: suggesting some solutions for enterprises to overcome difficulties. Photo: Nguyen Hai

At the forum, representatives of business associations and entrepreneurs also proposed to the province a number of solutions to promote the private economy in general and the development of the provincial business community. Next, on the basis of receiving the recommendations, representatives of a number of provincial departments and branches answered and resolved a number of issues that businesses were concerned about; shared and recommended a number of major orientations of the province for the business community to refer to and study...

Also within the framework of the seminar, VCCI Nghe An Branch organized the awarding of membership cards to new businesses joining VCCI.

Nguyen Hai