January 24, 2015
– The Government is taking steps to create a more favorable environment for the development of the private sector which is still struggling hard to survive the economic hardship.
Minister of Planning and Investment Bui Quang Vinh said the ministry is drafting a law on small and medium enterprises (SMEs) which is designed to create a breakthrough development in the private sector. “The goal of the proposed law is to create the best environment for the private sector to thrive,” Vinh told the media in Hanoi last week. He expected the draft of the SME law to be completed and put on the table for comment this year.
According to Vinh, though the enterprise and investment laws passed by the National Assembly last year have helped create a favorable business environment, they are not supportive enough for the struggling private sector. “We need to care more about the development of the domestic business community, especially private enterprises. I want to repeat that private firms must be the key driving force for the country’s development,” he stressed.
The proposed law would build the most favorable playing field for business start-ups and people to translate their business ideas into reality. Besides, it is expected to include regulations prioritizing the establishment of funds designed to give soft long-term loans to private enterprises.
The private sector is still grappling with challenges in terms of access to land resources and credits and a level-playing field with the State sector.
At a National Assembly’s debate on the socio-economic situation last November, the Vietnam Chamber of Commerce and Industry (VCCI) reported that only more than 30% of 485,000 private enterprises in Vietnam had been profitable in the year to October. To help the private sector overcome tough times, VCCI Chairman Vu Tien Loc suggested the Government create a favorable and safe business environment and providing more support, especially for SMEs. It should also review the laws and regulations affecting enterprises every six months and propose solutions for helping them get out of difficulties.
According to a survey on SMEs in 2013 sponsored by the Danish International Development Agency and complied by the Central Institute for Economic Management, the General Statistics Office and the University of Copenhagen, there were few enterprises posting good results last year. All indicators like the number of enterprises, scale, productivity, investment and innovation were falling.
(The Saigon Times)