Developing Private Business Community

​For Dong Nai, many economic policies that have been built also focus on supporting and solving difficulties and problems in production and business of small and medium enterprises, private enterprises.

Production in a private sector enterprise.

Using private economy as ‘engine’ of growth

On the national level, in recent years, the role of the private sector (including private enterprises and individual business households, cooperatives, etc) has become increasingly important. At the Vietnam Private Sector Economic Forum 2019, Prime Minister Nguyen Xuan Phuc affirmed that the private economy contributes about 40% of GDP, 30% of state budget, and attracts about 85% of workforce. The changes in institutions and policies have created achievements in development of private sector in Vietnam.

However, according to the Vietnam Chamber of Commerce and Industry (VCCI), the number of large enterprises only accounts for less than 2%, medium-sized enterprises account for 2%, the rest 96% are small and micro in the private sector. The resilience of domestic private enterprises to external shocks is not high. The competitiveness and ability of private enterprises to connect to global value chains is extremely limited.

To match the decade’s development trend as well as the economic sustainability, the Government is building a socio-economic development strategy for the period 2021-2030. Accordingly, it is necessary to strongly develop the Vietnamese private economic sector in terms of quantity, quality, efficiency and sustainability, really becoming an important driving force in economic development; Eliminate all barriers and prejudices, create all favorable conditions for private economic development; Support the private sector to innovate, modernize technology and develop human resources, and improve labor productivity.

The Government also encourages the formation and development of large private economic groups with strong potentials and regional and international competitiveness. The goal is that by 2030, there will be at least 2 million enterprises with the private sector’s contribution to GDP reaching 60-65%.

Dong Nai actively supports private economic development

Recognizing the important role of the private economy, Dong Nai has been adjusting its development strategy, giving more priority to the small and medium enterprise community, and private enterprises. Currently, Dong Nai is building a project to support small and medium enterprises until 2025. This project mentions 9 groups of issues, of which, the group of general support policies includes: credit guarantee support for small and medium enterprises; support in production and business grounds for supporting industry enterprises; support for human resource development, corporate governance, labor quality improvement; assistance in using consulting services; free business registration; advice, guidance on tax procedures and assistance in legal matters. Dong Nai also pushed the transition from individual business households to enterprises; support startups to innovate, join industry clusters, production value chains, and so on.

For so long, Dong Nai has been quite successful in attracting investment from FDI enterprises. Foreign enterprises have made an important contribution to socio-economic development, creating jobs for hundreds of thousands of workers, but it is time to give more priority to domestic private enterprises. Therefore, the province will continue to reform administrative procedures, create a transparent business environment for businesses, especially private enterprises to develop. Since then, there will be the construction of specific support policies for businesses.

Phan Anh