Private enterprises want capital to support and access to land like the State

The private sector currently contributes about 40% of GDP. In particular, private enterprises contribute more than 24%, business households over 23%and collective economy (cooperative) nearly 3%. The private sector also contributed more than 30% to the state budget.

However, at the seminar “Removing policies inadequacies to promote the private economy in Vietnam’s economy” held by Huba on March 21, many private businesses expressed their discontent because they thought that they were always treated unfair compared to state -owned enterprises.

Mr. Nguyen Quoc Ky, Chairman of Vietravel Airlines, shared that in the aviation industry, the private enterprise almost “swim” without support from the state. The clear evidence is that during the CIVI-19 period, the budget was allocated to support the state-owned enterprises, while the private sector did not receive any similar policies. This makes them face many difficulties and limit development opportunities.

Not only that, the form of public -private partnership (PPP) has not created favorable conditions for private enterprises. Mr. Ky proposed to create an equal playground, considering the state economy, private and individual households as the three main pillars of the economy, instead of stratification, causing unfairness.

Sharing the same opinion, Mr. Johnathan Hanh Nguyen, Chairman of IPPG Group, proposed that the State should create equal mechanism for private enterprises to access resources, including land, finance and important infrastructure projects.

He cited the fact that prime real estate positions in Ho Chi Minh City are mainly owned by the State but have not been effectively exploited. If assigned to private enterprises, these premises can become a commercial and service center, attract tourists and motivate the private economy to develop.

Private enterprises not only have difficulties in the country but also have export barriers when not supported by the State. Mr. Tran Viet Anh, Chairman of Nam Thai Son Import Export Joint Stock Company, said that when the US imposed anti -dumping tax with plastic industry, Malaysian and Thailand enterprises were supported by the Government to successfully appeal, and Vietnamese enterprises had to self -manipulate and take high taxes for 15 years. This makes them afraid to expand the international market.

In addition, administrative procedure barriers are also inhibiting the development of the private sector. Many individual business households have hundreds of billion dong revenue each year still do not dare to convert into enterprises due to concerns of complicated procedures and the business environment is not really transparent. Mr. Viet Anh proposes to have policies to encourage and support individual business households to convert into businesses so they can develop sustainably.

From the perspective of institutional reform, Mr. Mai Huu Tin, Chairman of the Business Federation of Binh Duong Province, emphasized that it is necessary to eliminate the “application – giving” mechanism in licensing, promoting e -government to transparent investment process, raising infrastructure investment rates and developing high quality human resources.

Ms. La Thi Lan, General Director of Tien Loc Investment Group, also proposed improving the legal environment for private enterprises to access land and capital easier. She emphasized the importance of promoting cooperation between the State, businesses and research institutes to increase investment in R&D, helping domestic businesses participate deeply into the global supply chain.

From the above opinions, Mr. Nguyen Ngoc Hoa, Chairman of Huba, proposed the Government to place specific KPIs for each ministry and locality to measure the effectiveness of policies and ensure the actual reform that brings changes to private enterprises.

Receiving the reflections of the enterprise, Ms. Bui Thu Thuy, Deputy Director of the Development of Private Enterprises and Collective Economy (Ministry of Finance), said the Department is completing the draft Resolution on private economy to submit to the Government and the Central Government next week. This draft focuses on many important issues, including clarifying the “non -criminal economic relations” regulations in the Penal Code and coordinating with the police industry to concretize this content.

The Department also recorded many suggestions from businesses such as without waiting for a new legal framework to implement a new field. In addition, the State needs to spend a minimum area in the industrial park for small and medium enterprises, the first three -year tax exemption for new businesses and apply credit guarantee policies according to the Japanese model.

Some other suggestions such as requiring FDI enterprises to link and transfer technology, clearly assign the role between large, medium and medium enterprises, and support small and medium enterprises to access the global market. The Department also considered providing free software to micro enterprises and replacing securities tax with a certain revenue threshold to request an enterprise establishment.