It is necessary to have support policies to encourage investment from the private sector as private enterprises are the most numerous and have made great contributions to the economy's development, according to insiders.

With nearly one million businesses and around five million business households, the private sector contributes approximately 51% of the country's Gross Domestic Product (GDP) and over 30% to the State budget. However, most small and medium-sized enterprises (SMEs) face significant barriers in scaling up and enhancing their competitiveness.

A representative of a fertiliser manufacturing facility in Hanoi shared that while the company aims to expand production to meet domestic demand, accessing bank loans remains a major challenge.

According to statistics from the Ministry of Finance’s Department of Private Enterprise and Collective Economy Development, 67,034 enterprises withdrew from the market in the first two months of this year, with about 84.9% opting for temporary suspension. This trend underscores ongoing financial pressures and the viability the SME area.

In Ho Chi Minh City, many businesses are struggling with production expansion, capital access, and fulfilling administrative procedures. Nguyen Quoc Anh, Director of Duc Minh Rubber Co. Ltd, noted that private enterprises face difficulties in securing land for expansion due to soaring land prices in the southern metropolis. Despite a decline compared to last year, high interest rates continue to exert pressure on businesses.

He emphasised the need for support policies to encourage private sector investment, suggesting that access to land, preferential loans, and lower interest rates would motivate businesses to expand and adopt advanced technology.

Nguyen Ngoc Hoa, Chairman of the Ho Chi Minh City Business Association, highlighted cumbersome administrative procedures as a major obstacle. He explained that SMEs often lack the manpower to navigate complex and sometimes impractical regulatory requirements.

Tran Dinh Thien, former Director of the Vietnam Institute of Economics, stressed that HCM City should develop a new mechanism to remove barriers for enterprises, which serve as the primary drivers of economic growth. He called for comprehensive administrative reforms, greater business autonomy, and improved access to production facilities.

Additionally, he emphasised the importance of specific policies to support SMEs in obtaining preferential financing and land for production. Efforts should focus on management consulting, workforce training, and market connectivity to enhance business competitiveness, he added./.