VOV.VN - Equal treatment and support from state agencies are needed to bolster the development of local private firms, insiders have noted.

Agricultural firms are put at a distinct disadvantage as they meet many difficulties
in accessing commercial loans and struggle to mobilize capital from other sources.
(Illustrative photo)

Despite being an essential part of the Vietnamese economy, local private sector has enjoyed only modest development, frequently falling short of expectations. Experts and businesspeople have blamed this on headwinds from the domestic business climate.

Dr. Bui Quang Tuan, head of the Vietnam Institute of Economics, said an array of inadequacies and shortcomings have hindered economic development, whilst the room to boost the existing growth model has been depleting. 

Tuan urged concerted efforts into fostering economic restructuring and shifting the model from wide-scale growth to in-depth one, thus helping to better competitive edges for private firms and give a fresh impetus to the sector’s overall development.

Addressing the Vietnam Private Sector Economic Forum 2019 last week in Hanoi, Nguyen Thanh Ha, chairwoman of the budget carrier Vietjet Air, suggested that the Government and the Ministry of Transport should give additional priority to the planning of local infrastructure projects, especially airports and railways, as well as create more favorable conditions for competent private firms to take part in such projects. 

Ha said that private firms want to receive equal treatment from state management agencies in order to help them fully tap into their capacity and advantages.

With the aim of further boosting agricultural development, Thai Huong, Chairwoman of the TH Group, called for greater efforts to carry out pilot schemes on developing high value agro-aquatic products which are likely to meet increasingly stringent requirements of importers. 

In order to realize the schemes, she underscored the need to make insightful analysis of both target markets and product categories. This preparation should be coupled by the restructuring of local agricultural production and the development of specialized product chains for overseas markets, most notably fresh milk to the Chinese market and shrimp for the US, Canada, and the EU.

The TH chairwoman stressed the identification of top agricultural firms as a must to put forth mechanisms and policies aimed at leveraging their development. 

Vu Thi Van Phuong, Chairwoman of VietRAP Investment JSC, said agricultural firms reportedly face various difficulties in accessing commercial loans while exposing themselves to various risks from extreme weather, climate change, and fluctuations in sales and distribution networks.

Hences, they must struggle to mobilize capital from other sources, Phuong said, adding this puts them at a distinct disadvantage.