Measures proposed to help private sector develop

11:19 | 11/06/2015 Society

Chairman of the Viet Nam Chamber of Commerce and Industry (VCCI) Vu Tien Loc on Tuesday gave nine recommendations to the Government to help tackle difficulties facing the local private economic sector.

Measures proposed to help private sector develop

Loc said the Government should form an overall action plan to promote the development of the private sector, given that its operational efficiency had not improved much and that nearly 70 per cent of them operated without profits.

Although the private economic sector contributed nearly 50 per cent of GDP, over 33 per cent of the figure was made up by households businesses, proving that the private sector remained scattered, he said.


According to Loc, it was firstly essential to build and implement a start-up national programme to help provide career orientation guidance for students and help establish businesses with innovative technology to support sectors that Viet Nam had competitive advantages in.

Sectors and areas that Viet Nam has competitive advantages include agriculture, electronics, information technology, garments and textiles, wood processing and tourism. Support for these sectors should be collectively given to a whole chain or complex, not to single businesses.

Secondly, it was important to simplify business conditions and administrative procedures relating to the establishment and operation of businesses, increase professional training and build a compulsory training programme about start-ups for business owners.

Thirdly, priority should be given to credit flow because small and medium-sized businesses needed effective credit programmes to help deal with capital issues. This could be done by reducing interest rates for medium and long-term loans, simplifying loan conditions and procedures and starting small and medium-sized business development funds, as well as developing private funds and funds for scientific and technological applications.

Other recommendations include enhancing IT systems and speeding up trade and investment promotions; reviewing and cutting unnecessary business procedures and licences; ensuring safety for businesses; and updating businesses with information relating to commitments, opportunities and challenges from Free Trade Agreements.

Loc's proposals were put forward at the Viet Nam Business Forum co-organised by the Ministry of Planning and Investment, the International Finance Corporation and the World Bank.

The Ministry of Finance reported that nearly 35,000 businesses were established in the first five months of this year, bringing the total number of businesses in operation nationwide to more than 506,000.

Of the total number of businesses operating in the private sector, large and medium-sized businesses accounted for less than two per cent each, while the remaining 96 per cent were small and super small businesses./.

Source: VNS