PM orders efforts to settle diffucilties facing businesses

Chairing a meeting between Cabinet members and leaders of 12 leading private economic groups and enterprises on measures to boost the country's socio-economic development, he also noted that this meeting, the first of its kind held so far, shows the Party and State's great attention to private businesses which he described as an important driving force for the growth of the national economy.

The private sector contributes about 45% of the country's GDP, generating about 30% of the State budget revenue, drawing 85% of the workforce, and paying about 35% of the total corporate income tax. This is a large force that has accumulated sufficient capacity in terms of capital scale, technology level, and corporate governance, with brands reaching out to regional and world markets, he said.

The leader recognised the great contributions from the private sector to the country's successful fight against the COVID-19 pandemic and post-pandemic economic recovery, as well as social welfare activities.

Emphasising that the country has never had such a fortune, potential, position, and international prestige as it is today and is entering a new development period, Chinh expressed his hope that private enterprises will continue upholding their patriotism tradition and solidarity, together with their peers from all sectors to create new breakthroughs in national development.

He said he hopes Vietnamese businesses will take the pioneering role in innovation and actively engage in the implementation of strategic breakthroughs, renovating traditional growth motivations, taking science-technology and renovation as a new growth motivation of the country, together with the country developing rapidly and sustainably, striving to achieve major targets towards the 100th founding anniversary of the Communist Party of Vietnam in 2030 and the 100th National Day in 2025.

Particularly, they should join hands in completing iconic projects such as the North-South Expressway, the expressway system and the project to build and upgrade houses for the needy, and poverty reduction, he said.

According to the Ministry of Planning and Investment, currently Vietnam has more than 930,000 operating businesses, 98% of which are small- and medium-sized, with 14,400 cooperatives and more than 5 million business households.

Along with the strong growth in quantity, Vietnamese enterprises have continuously developed and expanded their scale in terms of capital, revenue, profit, and labour efficiency; demonstrating their role as the main force in managing and organising production resources, creating products, goods, and services for society, promoting the growth and development of the country's economy and society.

Particularly, a large number of large-scale private firms have developed and clinched their role as an important driving force of the economy such as Thaco, Hoa Phat, Sovico, and TH.

After nearly 40 years implementing the "Doi Moi" (Renewal) scheme, Vietnam has risen up to be among the world top 40 leading economies, top 20 countries in terms of the trade scale, and an important link in 16 free trade agreements (FTAs) connecting 60 key economies in the region and the world.

The scale of the economy increased from 26.3 billion USD in the early years of Doi Moi to more than 430 billion USD in 2023. Vietnam is considered by the United Nations and international friends as a success story and a bright spot in poverty reduction, constantly improving the material and spiritual life of the people.

However, the world is witnessing many major changes, the emergence of new industries, and changes in policies of major economies, leading to shifts in investment flows, and adjustments in the structure of trade and investment. This pose both risks and challenges but, at the same time, brings new opportunities and fortunes to countries.

The new context is also raising new requirements in the country's economic development such as green and sustainable growth, with the goal of achieving net-zero emissions by 2050, requiring efforts to attract investment and create breakthroughs for pioneering industries such as semiconductors, AI, green hydrogen; growth based on science - technology, innovation, promoting new growth drivers coming from the circular economy, digital economy, and even new economic models.

At the meeting, Cabinet members looked into businesses' ideas on difficulties facing them and proposals on solutions, while listening to their opinions on measures to implement national-scale projects and deal with major problems of the country with an aim to make Vietnam a developing country with modern industry and high middle income by 2030 and a developed country with high income by 2045 as set by the 13th National Party Congress.

Nguyen Phuong Thao, Chairwoman of the Sovico Group, President and CEO of Vietjet, expressed her hope that the PM will trust private firms and offer them optimal conditions in law, mechanism and business environment to build strong economic groups with national and international brands, helping boost the growth of small- and medium-sized enterprises and startups. She hailed the Government's e-visa policy and showed her hope that Vietnam will be come an aviation centre and a driving force of the aviation sector in the region and the world.

Le Van Kiem, Chairman of the KN Holdings, asked for more favourable conditions for the firm to develop new-generation industrial park projects. He said he hopes ministries, sectors, businesses, and localities will continue to simplify administrative procedures and processes, especially those related to industrial park planning and infrastructure development.

Meanwhile, Dang Minh Truong, Chairman of the Sun Group, proposed the application of special mechanisms to attract private firms' engagement in projects that motivate socio-economic development, including land use mechanisms.

PM Chinh pledged that the Government will continue to build and perfect mechanisms for businesses' smooth operation, strengthen decentralisation and delegation of power to ministries, sectors and localities, and drastically cut down administrative procedures.

Stressing that the people and businesses are the centre and subject in institution completion, the leader asked the business community to take the pioneering role in six aspects, including innovation, application of science and technology, focusing on traditional growth drivers, promoting new growth motivations such as digital economy, green economy, circular economy, knowledge-based economy, sharing economy, and mitigating climate change. They should pioneer in participating in global value chains and supply chains, contributing to building corporate brands and national brand, as well as in creating jobs and improving livelihood for people and social security activities.

He also expected businesses to take the lead in infrastructure development, especially digital, transport, socio-economic, cultural and green infrastructure. They should support one another for common development.

The Government leader asked ministries and sectors to listen to and respond to requests of businesses in the spirit of shared risk and harmonised interest among the State, the people, and tje enterprises. They should organise thematic conferences with businesses to discuss issues related to land use, environment, finance, tax, and investment to deal with problems in the fields.