​More incentives needed for Vietnamese private firms

​More incentives needed for Vietnamese private firms

The private sector in Vietnam needs more practical policies to truly play a significant role in the national economy, according to experts.

Products of Dony Garment Co. Ltd., a private company in Tan Binh District, Ho Chi Minh City, have been exported to many Asian and European markets. Photo: Tu Trung / Tuoi Tre

Nguyen Van De, chairman of the Vietnam Private Hospital Association, emphasized the need of eliminating biases against the private sector, and supporting and accompanying them instead.

In reality, some localities have yet to create favorable conditions or provide support for businesses.

Some localities with large tax revenue sources rely primarily on large enterprises and foreign investors, leading to the discrimination against small and medium enterprises (SMEs).

There is a need for policies that encourage localities to increase tax revenue from private enterprises, especially SMEs.

This should be used as a measure to evaluate the development and capabilities of such localities, which will help local leaders pay more attention to SMEs and private enterprises, De suggested.

Do Phuoc Tong, chairman of the Ho Chi Minh City Mechanical and Electrical Enterprises Association, hopes to ensure fairness and equality by allowing local private enterprises to access capital and production materials like state-owned and foreign-invested companies.

He proposed creating conditions for private enterprises to participate in major national projects.

To achieve this, it is crucial to remove obstacles in mechanisms and policies to ensure that businesses can invest with more streamlined and convenient procedures, said Tong.

Local enterprises should be assigned to turn out products and components within their capability.

The task should be made in a systematic manner, involving relevant parties and providing prior notifications to companies so that they can properly prepare for investment projects.

Mac Quoc Anh, vice-chairman and general secretary of the Hanoi Small and Medium Enterprises Association, underscored that policies and regulations must be consistently enforced, avoiding overlap, contradictions, or sudden changes that could hinder businesses in making long-term plans.

Currently, most private enterprises still rely on their own capital or bank loans with high interest rates.

Therefore, businesses hope the government will provide financial support policies, such as creating funds to assist the sustainable development of private enterprises, especially startups and innovative businesses.

Anh also pointed out one of the major challenges for private enterprises, which is access to land, especially for businesses in manufacturing, processing, and supporting industries.

He emphasized the need for clear policies, including greater transparency in land management, streamlined procedures for leasing and allocation, and strict measures to curb speculation to maintain fair costs.

These efforts should go hand in hand with fostering innovation, advancing digital transformation, and developing a highly skilled workforce.

Tuoi Tre News