Vietnam’s economic growth indicates a sluggish rate resulting from multiple difficulties and challenges. In the first quarter of this year, the economic growth rate was 3.32%, only 0.11% higher than that at the time of the Covid-19 outbreak. This cries a distressing signal while the Vietnamese economy is currently suffering from no shocks.
Such information was provided at the 2nd Vietnam Private Sector Forum (VPSF), with the theme “Embracing the private sector as an important driving force of the economy” organized by the Vietnam Private Business Association (VPBA) on April 2nd in Hanoi.
The forum attracted the attention of delegates who are leaders representing ministries, departments and agencies; economic experts, researchers along with 200 typical entrepreneurs. The Prime Minister, Mr. Pham Minh Chinh, presented a congratulatory flower basket.
Accordingly, the Vietnam Private Sector Forum is aiming to become a regular event for businesses and ministries, sectors, agencies and economic experts to exchange, share thoughts and evaluate practical business experience in economic development.
Thereby, opinions and responsibilities will be contributed to the Party and State to increasingly improve mechanisms and policies for private economic development in particular and socio-economic development in general as well as to spread inspiration and responsibility, aspiration to innovate, create and connect a network of Vietnamese Private Business Association for the mission of developing and protecting the Nation.
The speaker for the opening of the forum, Associate Professor, Dr. Nguyen Trong Dieu, Chairman of the Vietnam Private Business Association, said that our Party has determined to perfect mechanisms and policies to encourage and facilitate strong development of the private sector in most economic sectors and fields, becoming the key motivation to the economic growth.
The Resolution No. 10/NQ-TW dated 3 June 2017 by the 5th Conference of the 12th Party Central Committee on the development of the private sector also sets forth requirements for the private sector development, the national economy and the collective economy to become a decisive factor of the socialist-oriented market economy.
However, the current global economic status is extremely complicated, unpredictable, and the existing limitation of the economy… creating “hindrance” against the socio-economic growth of the country in general and the private sector in particular.
In the current backdrop, 4.0 digital technology and scientific breakthroughs have radically changed the life dynamics, moreover, the outbreak of the global pandemic and the capricious and compicated global politics pose significant challenges for private economy in particular and the State economy in general.
According to Dr. Vu Dinh Anh, the economist, Vietnam has failed to reach a target of having 1 million enterprises by 2020, only achieving 800,000 enterprises. Particularly, in the first quarter of this year, the national economy witnessed a worrying statistic of around 60,000 enterprise closures, compared to around 57,000 newly-established enterprises.
For the first time, the number of business closures is greater than the number of newly-established businesses, thus, the goal of reaching 1 million businesses is distant. In the next 2 years, the goal of 1.5 million businesses is more unobtainable and seemingly unrealistic. Therefore, policymakers need to create a more equal business environment, without discriminating state economy and private economy in order to create momentum for the development of enterprises.
Chairman of Thanh Hoa Business Association, Mr. Cao Tien Doan, said that fund access is one of the major issues concerned by the business community today. It has become one of the most important and topical matters that determine the inception, existence and development of every enterprise, especially in the private sector.
This is considered a practical channel to support and promote the development of enterprises associated with the initiative in production and business. Enterprises believe that “money is the life-blood of any business entity”, meaning the lack of funding will delay the enterprise’s growth, then even lead to business shutdown.
In fact, there are still many barriers, difficulties and obstacles such as: cumbersome and inconsistent loan application process; limited coordination between commercial banks and competent state agencies that confuses businesses. For which, solutions are required to help businesses access capital quickly, safely and effectively in the near future.
In order to sustain and develop, apart from actively connecting capital resources, it is recommended that the banking industry promptly solve the above-mentioned outstanding problems, helping businesses easily embrace and access capital. Along with that is continuing to promote administrative reformation, especially improve the process, simplify loan application procedures; encourage the implementation of information technology in management, analysis and prevention of risks.
Many business representatives believe that in order for the private sector to truly become a crucial driving force of the economy, the State plays a very important role in mindfully and wholeheartedly creating, supporting, promoting policies that serve its people. Enterprises and entrepreneurs also need to be properly, fully and deeply aware of their rights, obligations and responsibilities in the renewal and development of the Nation.
Source: Nhan Dan Newspaper