Mr. Dau Anh Tuan, Deputy Secretary General, Head of Legal Department of VCCI. Photo: VGP/Minh Ngoc

Multi -dimensional imprint and need to be treated fairly

Looking back over the years, how do you assess the development of the private sector in our country?

Mr. Dau Anh Tuan: I think that nearly 40 years of renovation, the private sector has a breakthrough development. We can see a clear difference.

In terms of quantity, the number of private economy in the past, but now we have nearly 1 million official businesses operating, 5 million business households. Obviously, looking at the products and services we use every day, the imprint of the private business shows very bold, there is a huge change.

The special thing is that the private enterprise is taking on an important role in the economy. Private enterprises have participated in the construction of important national infrastructure works, such as highways, international airports, international seaports ...

Private enterprises have car brands that state -owned enterprises (SOEs) have not yet done. It can be seen that the private sector has developed very strongly in the recent period. In addition, Vietnamese private enterprises have relatively multi -dimensional imprints.

We have large private enterprises, but most still depend on real estate and finance.

Large private enterprises have production capacity, with prominent brands globally, which can compete with rare countries. The medium -sized private enterprise sector has a very lacking technology to participate in the global production chain.

Next to the informal economic sector. Although the small private sector is large, creating jobs and contributing to large GDP, but still operating in the "gray" area. This can be called business households, business individuals.

Currently, we have about 5 million business households and business individuals. This force is crowded but not informal, there is no motivation to move into official operation into businesses, not upgrading its management.

This also limits the growth in scale. When the enterprise does not increase in scale, the application of science and technology, the application of management, participating in the state support programs are very limited.

Private economic development: There are still many things to do

Can you share your opinion that the private economy needs to be treated fairly like other economic sectors?

Mr. Dau Anh Tuan: To develop the private economy, there are still many things to do. According to the Party's orientation, in the coming time, we have come to a more methodical strategy, to promote the private enterprise to assert a more important role in the economy.

Although according to many evaluation criteria, such as contributing to GDP, creating jobs ... this is an important area number 1 calculated by the proportion of official and informal area, but the current support and support orientation is still faint.

Many people say that private enterprises have not equal points compared to state -owned enterprises and foreign -invested enterprises. I think this is completely true.

We can see in terms of access to business resources. For example, about land, SOEs have an advantage in land, even exempted from land rent or land rent at a cheap price.

FDI enterprises often have industrial parks that the State invests in relatively basic infrastructure. They also have a lot of capital to lease land in industrial parks and may be exempted from land rent, tax exemption.

And private enterprises have no advantages, no incentives, no support in land access. Therefore, it leads to the situation that Vietnamese private enterprises in industrial zones are currently very modest. Especially small and medium enterprises, the opportunity to access the land is very difficult. This is also reality.

In terms of capital, for SOEs, the level of credibility for the bank is better, they can access more favorable capital. FDI enterprises can access many capital sources, especially those with cheap capital.

Meanwhile, Vietnamese private enterprises, most of access to capital through the only channel, banks with relatively high interest rates compared to other countries. Therefore, the competition on capital costs of Vietnamese private enterprises compared to businesses of other countries is very difficult.

In terms of administrative procedures, SOEs have difficulties in administrative procedures, but the level of interaction and their influence on the government is good, so this is not a big obstacle. FDI enterprises operate relatively professional, organize good associations, positions, voice are more respectful. Meanwhile, there are many private enterprises that do not have attention and support in terms of administrative procedures.

Within the framework of the law, we have preferential policies, supporting large foreign businesses, but with very few private businesses. The Law on Supporting Small and Medium Enterprises issued in 2017, including tax reduction regulation for small and medium -sized enterprises, a good rated policy, but after many years, we have not implemented this regulation.

Currently, these businesses have not been entitled to tax reduction policies because corporate income tax law has not been revised.

These things show that there are still inadequacies, difficulties and obstacles for the operation of the Private Enterprise in Vietnam.

Need a methodical, breakthrough strategy

As you mentioned groups in private enterprises. Currently, there is a clear regulation on classification of groups or statistical criteria in this area yet, sir?

Mr. Dau Anh Tuan: The important thing to change is the statistical system of the Private Enterprise in this area. Statistical criteria in Vietnam are not clear and not specific to assess how the contribution of private enterprises to GDP.

We can see that the current statistics are mainly the state and non -state sector. 940,000 enterprises operating under the law, how does it contribute to GDP, how to grow annually? That figure is not clear now.

In the coming time, it is necessary to have a clear change in the picture, "health" of private enterprises. For example, the number of new establishments, the time to contribute to GDP, contribute to import and export, to industry ... it is necessary to have more clear and more specific numbers. That figure can be divided into the region, divided by the province so that each locality can know "health", the level of contribution of private enterprises to their economy.

Currently, the statistics on the official and informal private enterprise are still not friendly for users. In the coming time, in my opinion, there is a strong change in statistics, numbers and criteria for the private business sector.

As you said, a more methodical, more breakthrough private economic development strategy needs to focus on the problem group?

Mr. Dau Anh Tuan: In my opinion, firstly, it is necessary to mobilize large businesses to participate in difficult and important things of the nation.

Private enterprises need to be bravely assigned more responsibilities, participating more in strategic projects and important national projects. This will enhance the capacity and affirm the role of this business block.

This business block is a national private enterprise, must be attached to the country's brand; Do not only for profit and business efficiency, but also for the benefit of the country and the nation.

For many important works of the country, such as high -speed rail, energy, airport ... This group of businesses should be mobilized to participate.

Secondly, a small, small and medium -sized private enterprise group, between the middle area, needs a strategy to enhance the quality of management, technology application to operate effectively and participate further to the global production chain.

The economy is changing, converting very quickly, small businesses have the advantage of high adaptation. Obviously, Vietnamese private enterprises have the advantages of those who go behind, such as contact with new technology.

For micro -business groups and business households, we need a strategy to promote this area to officialize, gradually get used to the form of administration and transparency to grow. But to officialize it is necessary to have economic motivation; Legal changes, taxes, administration fees, procedures for this group of objects must be very simple and friendly.

I think the strategy for Vietnamese private enterprises includes different groups towards different subjects.

The policy to support the private economy must be suitable for each business group

Regarding the support policy, how to create to promote the sustainable development of private enterprises, sir?

Mr. Dau Anh Tuan: In my opinion, the policy to support private businesses in the near future can be divided into many different groups.

One is the institutional group. This is a very important policy group. Specifically, it is necessary to continue reforming strong administrative procedures as General Secretary To Lam directs and reduces business conditions and compliance costs.

Vietnam must be one of the three ASEAN countries leading the advantages in the business environment. We need to review the legal provisions in the direction of more favorable conditions for private enterprises to participate in the field and the State can retreat in some areas.

This group of solutions can focus on creating more favorable conditions for private, capital and financial enterprises. This is one of the important policies in the near future.

The second is the policy group related to empowerment, that is, empowerment, increasing tasks to private enterprises. This policy group can be aimed at large enterprises, can order and assign jobs to large private enterprises to carry out important works; Encourage private enterprises to participate in more fields.

The third is the support and training group. We have supportive and training programs, but the way must be different from the present, in the direction of the market, instead of the traditional way of organizing the recruitment apparatus.

With a group of small and micro businesses, we can have public lawyers paid by the State, the accountants paid by the State. These people can provide dozens, hundreds of other small businesses provide free services. These methods are training and support solutions.

In some important areas, such as exports, the State needs programs to support market search, trade promotion, construction of Vietnamese agricultural products ...

If each business is done, it is very difficult, but the State has more professional programs and activities and investing resources, then I believe that it will be useful for the business activities of the business.

In order for private businesses to develop sustainably, we should promote the links of businesses. The linkage of Vietnamese enterprises is relatively poor, there is still unfair competition. We must give ways to improve business culture, promote the role of the Business Association.

With the job position regularly working with businesses, please tell me what is the most desired private enterprise?

Mr. Dau Anh Tuan: Compared to before, the current thinking and attitude of supporting private activities has changed a lot and positive. However, there are still doubts in the operating system of the role and capacity of the private enterprise.

I have felt that there is still a distance of belief in the operation of the government apparatus. Quite a lot of leaders and state apparatus said that the private business is short -term, without qualifications, snatching, ..

This may only be true for a few businesses, but the prejudice is quite popular, making the management solution sometimes in the direction of "a person who has abdominal pain catches the whole village to buy medicine". Many solutions create huge costs.

When the private enterprise lacks faith, they do business in moderation. There is still a gap of faith between the government system and the private business. Next time, this gap must be removed.

Next is the distance of thinking. Quite a lot of state agencies still provide solutions to private businesses according to their own, but have not listened to what businesses need, what solutions are suitable for practical.

It is necessary to have a level of business understanding and investors to offer the most needed business solutions. The government apparatus must understand the business better and understand the business thinking better.

The third is the speed gap. At present, the business speed is fast, deciding on the business must be released quickly. Meanwhile, decide and administrative process for a long time. We will see the phase deviation of administrative decisions compared to the business decision. In the context of technology, fast business decision because the market changes rapidly. If the administrative decision does not keep up, it will pull back the business.

I think that the distance of thinking, belief and speed must be shortened between the state sector and the private sector. This is also an important solution to create a favorable business environment in the near future.