In order for private enterprises to break through: A barrier-free track is essential

VCN - In order for private enterprises to break through, the Government must create a favorable business environment, a ventilation mechanism. Along with that, businesses also need to mobilize themselves to find more resources and opportunities to rise up on their own.
in order for private enterprises to break through a barrier free track is essential "Bottlenecks " of private airline businesses
in order for private enterprises to break through a barrier free track is essential Can Special Economic Zone be managed by private companies?
in order for private enterprises to break through a barrier free track is essential Expansion Of Private enterprises and State owned enterprises: What is the Difference?
in order for private enterprises to break through a barrier free track is essential
Enterprises need to learn and exploit new regulations in the FTAs to closely link with each other, creating counterbalance as well as power resonance. Photo: Xuan Thao.

New resources need to be found

From an enterprise perspective, Mr. Pham Dinh Doan, Chairman of Phu Thai Group said that Vietnam's economy had changed markedly, many large private enterprises had better conditions to develop than State-owned enterprises. However, looking at the number of businesses that have stopped working, we found that there were still a large number of small and medium-sized private enterprises that could not survive due to lack of support. Generally, Vietnamese enterprises had not many resources, especially when the resources from national ones were largely in state-owned enterprises. The total capital managed by the state-owned enterprises was many times higher than that of private ones. Therefore, institutions and resources for private enterprises were still only necessary and sufficient conditions; the most important thing was how to implement them. With the momentum of economic development as in the past few years, it was necessary to have more attention and a separate mechanism for private businesses to make their breakthroughs.

Also, according to the Chairman of Phu Thai Group, Vietnamese private enterprises had more flexibility than state-owned ones in using national resources. In the general picture of economic development, the resources from private enterprises were backed by the national resources. However, those resources could also be exhausted, so whether the growth quality of the private enterprises could be sustained in competition with domestic and foreign enterprises was a question to be answered. Because in the future, if Vietnam could not find new models, formulas or ways to access new resources, it would be very difficult for Vietnamese enterprises in general, and especially for private enterprises in particular, in the context of high competition and dramatic changes in economic scenarios.

“If we do not find new resources, take a short cut, apply new technologies, conduct sharing within the economy to have a new way of doing business... it will be definitely difficult. From the Government side, it is necessary to create a favorable business environment for enterprises to develop. And businesses need to improve their management capacity, product quality to improve their competitiveness," Mr. Doan stressed.

Reform is needed from the both sides

Proposing solutions for private enterprises to make breakthroughs, Dr. Phan Huu Thang, the former Director of Foreign Investment Department (Ministry of Planning and Investment) said that although the administrative reforms had reduced and the procedures had been more convenient, there were still many procedures that limit the development of private businesses. Therefore, in order for private enterprises to “break through”, the quality of state management at all levels, sectors and regions must have a real "breakthrough". At the same time, for private enterprises to "break out", they needed to improve their quality; the state also needed to create conditions for businesses and most importantly, businesses needed to effectively exploit external capital, especially FDI.

According to experts, besides the important role of the institutional reform, the administrative procedures and the business environment, one of the factors creating breakthroughs is capital. Meanwhile, the capital comes mainly from the private sector. Therefore, creating the most favorable conditions for the private enterprises to operate is a key and sustainable solution. However, reforms conducted by the government alone are not enough; businesses also need to reform, so they will not be removed from the game. The private enterprises also need to improve their own competitiveness proactively by actively self-innovating, and seizing opportunities from economic restructuring ...

Mr. Lam Minh Chanh, Chairman of the Business School BizUni, co-founder of the Management and Start-up Community, said that private enterprises contribute greatly to the economic development of the country. At the same time, we should not only rely on equitization of state-owned enterprises, because the private economy is the main driving force. It would surely not be good if the state only allocated the best resources to the state economy and overlooked the private economy and enterprises. When considering the private economy and enterprise as the main engine, it must reduce the contribution of the state economy sector, otherwise it would be very difficult to develop especially when the private economy was not treated fairly.

Proposing solutions for private enterprises to break out in the coming time, Mr. Nguyen Minh Phong - an economic expert said that in the current integration context, large and small enterprises that want to realize the advantages need to link with each other, seek to get support and incentives for mutual benefit to develop. Accordingly, associations and businesses need to understand and exploit new regulations in the FTAs to closely link with each other, creating counterbalance as well as power resonance in competition with foreign businesses. Small businesses should not compete directly, but should choose niche markets, or participate in the chain of large enterprises to gradually upgrade their technologies, standardize technical regulations in accordance with general value chain.

in order for private enterprises to break through a barrier free track is essential “Giving wings” to private enterprises

VCN - From XII Congress of the Communist Party, the private sector, including private enterprises, has been ...

According to Mr. Phan Duc Hieu, Deputy Director of the Central Institute for Economic Management (CIEM), if the business environment did not have a drastic breakthrough and more real innovation, it would be very difficult for businesses to develop. Although many regulatory agencies had had reforms, they could not be satisfied with the results, but continued to seek new ways to facilitate businesses. Therefore, if anyone who works in these positions did not change the mindset to serve the business best, he should not hold these positions. Enterprises needed a good, barrier-free track, and they would know how to accelerate and reach their destination.

By Xuan Thao/ Ha Thanh

Related News

Improve business environment to unlock potential for businesses

Improve business environment to unlock potential for businesses

VCN - According to Mr. Mac Quoc Anh, Vice Chairman and General Secretary of the Hanoi Association of Small and Medium Enterprises, despite current challenges, many resources are mobilized to optimize business results.
The economic situation continues to trend positively

The economic situation continues to trend positively

VCN - At the regular Government press conference for July and the first 7 months of the year held on the afternoon of August 5, Minister and Head of the Government Office Tran Van Son said that the socio-economic situation in the past 7 months continued to trend positively.
Lack of “locomotives” leading high-tech agricultural enterprises

Lack of “locomotives” leading high-tech agricultural enterprises

VCN - Vietnam currently has only about 50 enterprises recognized as “high-tech agricultural enterprises”, less than 300 agricultural enterprises applying high technology. These are modest numbers in the context of Vietnamese agricultural products needing to increase value when entering the international market.
Transparent and stable legislation is needed to develop renewable energy

Transparent and stable legislation is needed to develop renewable energy

VCN - Achieving net zero emissions by 2050 is a development goal that Vietnam has committed. This is mainly achieved through a strong energy transition and low-emission development. However, the transition to clean energy is not easy for Vietnam because building a clean energy supply system requires large investments. In addition, technology in the production and storage of renewable energy is still limited, making it difficult to ensure a stable energy supply.

Latest News

Frozen durian - new growth potential for durian industry

Frozen durian - new growth potential for durian industry

VCN - The official export of frozen durian to China will help optimize raw material sources for businesses, stabilize prices and increase the export value of this fruit from Vietnam.
Vietnam’s frozen durian exports to China could reach 300 mln USD in 2024: Official

Vietnam’s frozen durian exports to China could reach 300 mln USD in 2024: Official

Vietnam could earn 300 million USD from shipping frozen durian to China on the back of the signed protocol on plant quarantine requirements for the product between the two sides, Director of the Plant Protection Department (PPD) under the Ministry of Agriculture and Rural Development Huynh Tan Dat said on September 19.
US Commerce Department announces preliminary anti-dumping review results for Vietnamese catfish exports

US Commerce Department announces preliminary anti-dumping review results for Vietnamese catfish exports

The US Department of Commerce (DOC) has released the preliminary results of its 20th administrative review (POR 20) of the antidumping duty order on certain frozen fish fillets exported from Vietnam to the US for the period between August 1, 2022, and July 31, 2023.
Textile and garment industry perseveres in overcoming difficulties and seizing opportunities from the market

Textile and garment industry perseveres in overcoming difficulties and seizing opportunities from the market

VCN - In recent months, Vietnam's textile and garment exports have witnessed a strong recovery. However, along with opportunities, this top export industry in the country is facing many challenges from new, strict market requirements.

More News

Trade in goods in the second half of August increases over US$ 5 billion

Trade in goods in the second half of August increases over US$ 5 billion

VCN – The total trade in goods in the second half of August increased by 15.5% to US$ 38.02 billion compared to the first half of the month.
Bac Lieu plans to become renewable energy export hub

Bac Lieu plans to become renewable energy export hub

Deputy Prime Minister Tran Hong Ha has signed off a development plan for the Mekong Delta province of Bac Lieu that will cost 16-18 billion USD from now until 2030.
Vietnamese premium rice enters Canadian market

Vietnamese premium rice enters Canadian market

KD Trading, a logistic company run by two Vietnamese-Canadians, has become the sole partner to distribute ST25 rice (Mr. Cua's rice) in the Canadian market.
Logistics industry faces green transition imperatives

Logistics industry faces green transition imperatives

VCN - The logistics industry is among those most profoundly impacted by the burgeoning trend of green transition. However, whether this transition manifests as a pressure or a catalyst for growth depends on how businesses approach and implement it.
How are imported seafood products transferred to domestic consumption quarantined?

How are imported seafood products transferred to domestic consumption quarantined?

VCN - Enterprises importing aquatic raw materials for export production or processing for export transferred to domestic consumption encounter difficulties in implementing quarantine.
Steel stocks chill as weak demand sends a shiver through the industry

Steel stocks chill as weak demand sends a shiver through the industry

A significant recovery may be expected in 2025, leading to swift movements of funds within this sector.
Vietnam

Vietnam's seafood exports continue recovery

Vietnam saw a gradual recovery of seafood exports during the first eight months of this year, both in terms of demand and price.
Vietnam-China trade turnover hits nearly 130.8 billion USD

Vietnam-China trade turnover hits nearly 130.8 billion USD

The import-export turnover between Vietnam and China reached nearly 130.8 billion USD in the first eight months of this year, according to the latest statistics from the General Department of Customs.
Many good signals for businesses to accelerate seafood exports

Many good signals for businesses to accelerate seafood exports

VCN - Seafood exports in the first 8 months brought in nearly US$6.3 billion. With many advantages from the market and the dynamism of businesses, seafood exports are expected to increase compared to last year.
Read More

Your care

Latest Most read
Frozen durian - new growth potential for durian industry

Frozen durian - new growth potential for durian industry

VCN - The official export of frozen durian to China will help optimize raw material sources for businesses, stabilize prices and increase the export value of this fruit from Vietnam.
Vietnam’s frozen durian exports to China could reach 300 mln USD in 2024: Official

Vietnam’s frozen durian exports to China could reach 300 mln USD in 2024: Official

Vietnam could earn 300 million USD from shipping frozen durian to China on the back of the signed protocol on plant quarantine requirements for the product between the two sides, Director of the Plant Protection Department (PPD) under the Ministry of Agriculture and Rural Development Huynh Tan Dat said on September 19.
US Commerce Department announces preliminary anti-dumping review results for Vietnamese catfish exports

US Commerce Department announces preliminary anti-dumping review results for Vietnamese catfish exports

The US Department of Commerce (DOC) has released the preliminary results of its 20th administrative review (POR 20) of the antidumping duty order on certain frozen fish fillets exported from Vietnam to the US for the period between August 1, 2022, and July 31, 2023.
Textile and garment industry perseveres in overcoming difficulties and seizing opportunities from the market

Textile and garment industry perseveres in overcoming difficulties and seizing opportunities from the market

In recent months, Vietnam's textile and garment exports have witnessed a strong recovery.
Trade in goods in the second half of August increases over US$ 5 billion

Trade in goods in the second half of August increases over US$ 5 billion

VCN - The positive results in the second half of August rose the total trade in goods of the whole country in the month to US$ 512.31 billion, up 17% year-on-year.
Mobile Version