Private enterprises have not yet fully exploited their potential

Tuyết Lan thực hiện |

After nearly 40 years of renovation, Vietnam's private economic sector has had a strong development step, contributing greatly to GDP growth. However, private enterprises have not yet fully exploited their potential due to many internal limitations such as small scale, weak management capacity..." - Dr. Tran Van The - Chairman of the Board of Directors of InDel Investment and Development Company shared in an interview with Lao Dong Newspaper.

In your opinion, what factors are needed for private enterprises to develop more strongly?

- In addition to limitations originating from within the enterprise, policy factors also affect the enterprise. Institutions and policies are not really complete, the legal system is still overlapping, many conflicting regulations between laws such as the Enterprise Law and the Investment Law cause difficulties in project implementation. Each law leads to a different procedure, making it difficult for businesses to implement. The stability of legal documents is not high, there are decrees and laws that have just been issued and have been amended.

Regarding administrative procedures, despite reforms, businesses still face many difficulties in the process of applying for licenses, tax and customs declarations.

The ability of private enterprises to access resources such as capital, land and high-quality human resources is still limited. The competitive environment is not healthy and unequal, private enterprises face competition from FDI enterprises that receive great incentives and State-owned enterprises with strengths in capital and relations.

New development trends such as digital transformation, green transformation and ESG standards pose major challenges.

Faced with these barriers, what recommendations do you have to "pave the way" for the private economic sector?

- First, it is necessary to continue to improve institutions in a synchronous, transparent and stable direction, especially in areas where businesses are facing many difficulties such as investment, land, credit and public-private partnership. When developing policies, the State needs to listen to opinions from many sides, especially those directly affected, to ensure implementation. Legal policies must be stable, creating confidence for businesses to feel secure in investing.

Administrative procedure reform needs to be further promoted, not only in name but also in practice, helping businesses save time and compliance costs. Streamlining the licensing process, enhancing online public services, strictly handling harassment and maintaining a quick policy response mechanism.

The government needs to improve access to resources for private enterprises - especially capital, land and high-quality human resources. The immediate plan is to increase the credit ratio for SME and support interest rates for digital transformation and innovation projects; at the same time, reform land lease procedures, expand industrial land funds and promote training programs for human resources with technology and governance skills.

Innovation, digital transformation and green transformation need to be considered pillars in the development strategy of private enterprises in the coming period. The State needs to issue tax incentives, financial subsidies and technical consulting mechanisms for pioneering enterprises in R&D, green technology, ESG; at the same time, develop a local innovation ecosystem connecting enterprises - institutes - schools - investors.

To overcome the situation of fragility and disruption in production, it is necessary to strongly promote business linkage models - from industry clusters to domestic supply chains.

The Government has issued many Resolutions to reform administrative procedures, promoting the development of the private economic sector. Recently, there was Resolution No. 138/NQ-CP on the Government's Action Plan to implement Resolution No. 68-NQ/TW of the Politburo, how do you evaluate it?

- Enterprises acknowledge the Government's efforts in cutting administrative procedures. However, to truly implement it, many related legal documents must be amended. When not yet revised, businesses still have to follow old procedures, leading to delays. There needs to be a strong enough monitoring agency to ensure that state agencies comply with regulations.

From a business perspective, what do you think private enterprises need to do to develop?

- It is necessary to pay special attention to developing a transparent, responsible business culture and the rule of law in the business community; along with that, there are training programs, fostering leadership and governance skills and worthy recognition for entrepreneurs who have made substantial contributions to the development of the country. Take advantage of support policies to improve competitiveness, associated with sustainable development trends.

Thank you!

TS. Tran Van The - Chu tich HDQT Cong ty Dau tu va phat trien InDel. Anh: Tuyet Lan
Dr. Tran Van The - Chairman of the Board of Directors of InDel Investment and Development Company. Photo: Tuyet Lan
Tuyết Lan thực hiện
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