It’s important to enhance enterprises’ competitiveness

Mar 9th at 11:39
09-03-2021 11:39:45+07:00

It’s important to enhance enterprises’ competitiveness

It is important to improve the capacity of enterprises and not just develop them in term of quantity, experts said.

 

The General Statistics Office (GSO) said there were about 810,000 firms by the end of last year, missing the Government’s target of one million.

But the Government still has set the goal of 1.2-1.5 million enterprises by 2025 based on the fact that the business climate kept improving.

Statistics from the Ministry of Planning and Investment pointed out that the number of enterprises in Viet Nam increased by 10.5 per cent in the 2016-19 period with around 100,000 new firms launching every year, twice as high as the 2011-15 period. However, most were of small and medium sizes.

GSO’s Director Nguyen Thi Huong said the COVID-19 pandemic was significantly affecting the socio-economic development and health of enterprises.

Research by the Ministry of Planning and Investment pointed that the health of the Vietnamese enterprises was at the most pessimistic level in recent years. The number of new firms established in 2020 was 2.3 per cent lower than 2019 and the total number of employees of new firms was 16.9 per cent lower.

Economic expert Ngo Tri Long said Viet Nam is looking to develop big enterprises to lead the economy. However he noted that small and medium sized enterprises (SMEs) played a very important role but the policies introduced to support SMEs were proved not to work effectively as expected. For example, the SMEs support funds did not operate efficiently as it remained difficult for firms to get accessed to financial supports from these funds.

Long said that the support policies for SMEs must be more practical.

A weakness of Vietnamese enterprises was that most of them failed to participate in the global value chain, adding that it was critical for enterprises to participate in global value chain to develop in the integration process.

He said that support policies should be introduced for enterprises which were selected to be capable of engaging in the global value chains.

Early this year, the Government assigned the Ministry of Planning and Investment to develop a resolution about developing enterprises in 2021-2025 with a vision to 2030 which aimed to have 1.5 million firms by 2025, 15 to 20 of which are private and have capitalisation of more than US$1 billion.

To achieve this goal, there must be around 100,000 – 150,000 new firms every year in the next five years or the number of enterprises must increase around 12-14 per cent per year.

According to To Hoai Nam, Deputy President of the Viet Nam Association of SMEs said that while the quality of enterprises was the top concern, it was also important to develop a big enough enterprise community to create breakthroughs.

Nam said that it was critical to create a favourable business environment to achieve the goal in the next five-year period, adding that barriers related to administrative procedures must be removed and compliance costs reduced for firms.

bizhub



NEWS SAME CATEGORY

Vietnam women's e-commerce leadership ratio second highest in Southeast Asia

Forty-six percent of e-commerce business leaders in Vietnam are women, the second highest in Southeast Asia, according to a survey.

Swiss investors perk up at prospects

Vietnam will continue to lure in more Swiss investors thanks to the country’s vast potential and its emerging position as safe haven in the midst of the challenges...

Southern provinces attract FDI as existing investors vote with their feet

The southern key economic zone is increasingly attracting investments from foreign investors who have already tasted success there.

Private firms need more institutional support

Private enterprises do not need money but institutional support to enjoy a stable and safe business environment, bringing them equality and respect.

Economy remains on upward track

In defiance of the health crisis hurting the domestic economy, Vietnam has earned international optimitism for its growth outlook on the back of the country’s good...

Fraudulent UAE firms pose threat to Vietnamese businesses

The Vietnam Trade Office in the UAE is warning Vietnamese businesses dealing with six local food and healthcare-related firms to look out for signs of fraud.

Japan’s venture capitalist invests $700,000 in Vietnamese media start-up

Japan’s venture capital firm Genesia Ventures led the seed funding round of Vietnam based media startup Vietcetera with the investment of $700,000.

Share of female management in FDI highest among Vietnam economic sectors

The number of Vietnamese women accounts for half of the labor force but less than one-fourth of overall management roles.

PM expects more Vietnamese multinationals to emerge by 2045

Dialogue 2045 aims to realize the country’s desire for prosperity by 2045 as set out in the Resolution of the 13th National Party Congress.

Vietnam rises 15 places in freest economies list

Vietnam has climbed 15 places to become the world’s 90th freest economy in this year’s global ranking but lagged far behind most countries in its neighborhood.


MOST READ


Back To Top