VCCI Vice Chairman Hoang Quang Phong

After nearly 40 years of renovation, how do you assess the role of businesses and entrepreneurs in Vietnam’s development?

Over the past nearly 40 years of renovation, Vietnam has gained significant achievements in socioeconomic development. From an underdeveloped economy, Vietnam has now become one of the world’s top 40 economies and is ranked among the top 20 nations globally in terms of international trade, serving as a crucial link in 16 free trade agreements connecting 60 key economies in the region and the world. Vietnam’s economy has grown from US$26.3 billion in the early years of renovation to over US$430 billion in 2023. The United Nations and international friends regard Vietnam as a shining example in poverty alleviation, continuously improving the material and spiritual life of its people.

These achievements resulted from the efforts of the entire Party, all people, and the whole political system, with entrepreneurs and businesses playing a crucial role. We are delighted to witness that, after nearly 40 years of renovation, entrepreneurs and businesses have grown remarkably, with nearly one million enterprises across all economic sectors, over five million household businesses, and nearly 30,000 cooperatives.

Over the past many consecutive years, significant contributions of the business community and entrepreneurs have helped Vietnam achieve high economic growth. The business sector has created around 60 percent of Vietnam’s gross domestic product (GDP) and approximately 30 percent of jobs in society.

Politburo Resolution 41-NQ/TW reflects the attention of the Party and the State to promoting the role of Vietnamese entrepreneurs in the new era. Could you share the implementation results of this Resolution recently?

Resolution 41-NQ/TW emphasizes that entrepreneurs play an important role as one of the core forces in accelerating Vietnam’s industrialization, modernization, and international integration. Therefore, it is essential to create a favorable, safe, and equitable investment and business environment for entrepreneurs to develop. Appropriate sanctions should be introduced to address violations without criminalizing economic relations.

The business sector has created around 60 percent of Vietnam’s gross domestic product

VCCI has collaborated with the Central Information and Education Commission and the Central Economic Commission to organize a nationwide conference to disseminate and promote the implementation of Resolution 41/NQ-TW. This event was conducted both in-person at the Central Information and Education Commission and online, reaching over 4,000 locations across the country, with nearly 207,000 participants.

VCCI has also collaborated with relevant Party committees at the central and local levels to implement the Resolution. The Government has issued Resolution 66/NQ-CP dated May 9, 2023, outlining its action program to implement Resolution 41-NQ/TW. So far, the Party Committees of 55 out of 63 provinces and cities nationwide, 22 ministries, central departments and sectors, and various political and social organizations have issued action programs to implement the Resolution. VCCI has also issued Program 08-Ctr/DD to implement the Resolution.

What policies do you think Vietnam needs to implement for its business community and entrepreneurs to further develop, create value, and foster growth?

Timely mechanisms and policies have been enacted to help businesses overcome difficulties, recover from the COVID-19 pandemic and supply chain disruptions, and integrate more deeply into the global value chain. These include corporate income tax incentives, interest rate support from the state budget, legal support for small- and medium-sized enterprises, corporate governance, and credit information services.

However, in the context of significant changes in both domestic and global economies, which pose challenges for businesses and entrepreneurs, the Government needs to further strengthen the reform of economic institutions to create a more favorable business environment. This should be aligned with market standards and rules while limiting the State’s intervention to facilitate business operations. Ministries, central departments and sectors need to implement mechanisms and policies that promote new growth drivers, such as the digital economy, circular economy, knowledge-based economy, and sharing economy./.