To make the private sector a true vital driver of the national economy

Tuesday, 2019-06-04 11:32:57
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A tile manufacturing line at Vitto-VP Co., Ltd, Tam Duong 2 Industrial Park in Vinh Phuc province. (Photo: NDO/Tran Hai)
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NDO – Since the 12th National Party Congress, under the close direction of the Politburo and the strong administration of the Government, Vietnam’s economy has made an important shift and achieved optimistic results. Particularly, the private economic sector has seen positive developments in terms of both quantity and quality, after two years of implementing the Resolution No. 10-NQ/TW adopted at the fifth plenum of the 12th Party Central Committee on developing the private sector into an important driver of the socialist-oriented market economy.

The number of businesses operating across the country climbed from 665,000 in 2017 to 730,000 in 2018 and over 743,400 in the first quarter of 2019. The total registered investment capital was estimated to reach approximately VND1.48 quadrillion (US$63.64 billion) in 2018 from roughly VND1.3 quadrillion (US$55.9 billion) in the previous year. An average 1.1 million new jobs are generated annually. The operational scale of enterprises has also been expanded, with some firms possessing total assets worth hundreds of trillions Vietnam dong and employing dozens of thousands of workers. The entrepreneurship movement has blossomed, with more than 3,000 innovative startups recorded in 2018.

The Party, State and people recognise the increasing contributions of the private sector, which currently accounts for 42.1% of the country's gross domestic product (GDP) and posts a higher growth rate than the average level of the economy in the same year (6.81%). The private and collective economic sectors now represent 26% of Vietnam’s export value and 34% of its import turnover, while contributing to 32.26% of the State budget in 2017 and 38.2% in 2018, much higher than the rate of 29.43% recorded in 2016 when Resolution No. 10 on developing the private sector had yet to be issued.

The aforementioned vivid reality is a testimony of the Party’s decisions going in accordance with the people’s aspirations, thus strongly sparking patriotism, national self-reliance and the spirit of not resigning to poverty as well as being determined to rise above barriers, seize opportunities, utitlise achievements of the Fourth Industrial Revolution, unanimously work together, and create new ways to suit Vietnam’s conditions. Such spirits and wills were clearly demonstrated during thematic discussions at the 2019 Vietnam Private Sector Economic Forum co-chaired by the Government and the PCC’s Economic Commission at the Vietnam National Convention Centre in Hanoi on May 2. The conference witnessed a sincere and equal dialogue between typical businesses of various industries and ministers, deputy ministers and representatives from the National Assembly, the Vietnam Fatherland Front Central Committee and many policy-making agencies. New features and differences from previous forums were that enterprises did not lament about their difficulties and sectors did not try to whitewash their shortcomings, rather both sides wished to work out focused and breakthrough measures to develop the private economic sector to new heights, commensurate with hidden potential at many businesses as well as rich capital sources in society.

A “common denominator” in discussions at the forum was to continue promoting administrative reforms, especially administrative procedures, strongly improving the business climate, enhancing equal competitiveness, supplementing and perfecting the system of mechanisms and policies, and adjusting investment strategies of businesses towards greater sustainability. Despite a huge workload and numerous difficulties ahead, with the power of the great unity of the whole nation, as well as intelligence and creativity of Vietnamese businesses and people, there are strong hopes for new breakthroughs, as those seen in the early years of “Doi Moi” (Renewal) with the adoption of Resolution No. 10 on a system of “package contract” awarded to peasant households.