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Vietnam Today

VCCI & CIEM hold private sector forum

Released at: 13:32, 27/10/2017

VCCI & CIEM hold private sector forum

Photo: Hai Van

Private sector making substantial contribution to Vietnam's economy, forum hears, but more support is required.

by Hai Van

To identify the barriers and challenges the private sector is facing and identify solutions in support, the Vietnam Chamber of Commerce and Industry (VCCI) and its Vietnam Business Forum magazine, in cooperation with the Central Institute for Economic Management (CIEM), organized the 2017 Business Forum with the theme “Creating an Environment for Private Enterprises in Vietnam” in Hanoi on October 26.

Private enterprises have an important role to play in Vietnam’s economic development, creating jobs and leading in new production and business fields.

Addressing the opening of the forum, VCCI Vice Chairman Hoang Quang Phong said that the recognition of the private sector “by the Central Committee of the 12th Party Central Committee was a breakthrough in perceptions by the Party and the State about economic development.”

“Although the size of the private sector is small, it is important for the economy,” he added.

The forum heard that the government has issued a series of mechanisms and policies to realize its target of least 1 million private enterprises being established by 2020 and that the key to economic growth in Vietnam is the private sector.

The private sector has confirmed its role in the economy over recent years and has created many jobs and improved incomes.

Figures show that State-owned enterprises account for only 0.5 per cent of all enterprises while private enterprises account for 96.7 per cent and foreign-invested enterprises 2.8 per cent. The contribution by the private sector to GDP has been more than 43 per cent since 2010, while the State sector’s contribution was about 28.9 per cent and the foreign-invested sector about 18 per cent.

Some attendees noted that the government has created suitable conditions for private enterprises but more is needed.

Economists said that the difficulties faced by large private enterprises include the time and costs involved in complying with the law, legal risks in ensuring business safety, and weak management.

Representatives from a number of enterprises also said that what businesses need most is not just a package of capital support and land but also an equal and transparent business environment, stable policies, and simple administrative procedures.

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