Experts attending a workshop in Hanoi on March 12 suggested creating an equal competition environment and reforming the system of State resources allocation to spur the development of the private economic sector in Vietnam.

Illustrative image (Photo: VNA)

Experts attending a workshop in Hanoi on March 12 suggested creating an equal competition environment and reforming the system of State resources allocation to spur the development of the private economic sector in Vietnam.

According to the Ministry of Planning and Investment, the sector makes up 42-43 percent of the national GDP and employs around 85 percent of the workforce.

Minister of Planning and Investment Nguyen Chi Dung highlighted the ample space for growth of the sector, which, he said, needs maximum support.

He said management agencies should change their mindset to contribute to the sector’s growth, given good opportunities for local enterprises like those generated by free trade agreements, the fourth Industrial Revolution, and the shift of global production chains.

The minister also pointed out limitations in the sector such as low productivity and poor scientific-technological capacity.

Economist Pham Chi Lan said connectivity between Vietnamese firms has remained weak, and they have yet to paid due attention to improving the connectivity as well as competitive capacity to join regional and global value chains.

Deputy Director of the Central Institute for Economic Management (CIEM) Dr. Phan Duc Hieu stressed the need to identify the State’s role in the market economy and encourage enterprises to play a part in investment and provision of public services.

He also suggested raising the quality and feasibility of incentives, saying apart from the mindset, management methods should also be revamped./.