Viet Nam with an action program for private economic development

The Government issued Resolution no. 98/NQ-CP: on the Government’s action program for Resolution no. 10-NQ/TW dated on June 03th 2017 of the 5th Plenum of the XII Party Central Committee on developing the private economy as an important driving force of the socialist-oriented market economy. The resolution takes effects on October 3rd 2017.

It is aimed to achieve the following targets: By 2020, Vietnam private enterprises have high competitive capacity, sustainable development with higher growth rate than the general growth rate of the economy; there are at least 1 million operating enterprises nationwide, including large-scaled enterprises with strong resources; Vietnam private sector contributes about 50% of the GDP with the productivity growth rate of about 4 – 5% per year; more than 35% of Vietnam private enterprises conduct innovative activities; technological gap, human resource capacities and competitive capacities of private enterprises are narrowed to the leading group ASEAN-4; majority of private enterprises take part in regional and global production networks and value chains.

Key tasks are:

-          Perfecting mechanisms and unifying policies to create a safe, low-risk investment and business environment to attract private investment, and ensure healthy and fair competition based on market mechanism for the private economy.

-          Removing barrier, unnecessary and unreasonable business conditions, expanding the accessibility to the market and promoting healthy and fair competition.

-          Supporting private enterprises to innovate, modernize technologies, develop human resources and enhance productivity.

-          Raising the efficiency and effectiveness of state management; unifying the perception on private economic development.

Specifically, it is required to continuously review and propose to abolish at least 1/3 to 1/2 of current business conditions in administrative management and procedures; ministries and provincial people’s committees have to organize regular dialogues at least twice a year with enterprises communities and press to promptly solve difficulties and obstacles for enterprises.

At the same time, the following legal documents will be issued soon, including a decree on controlling and enhancing investment and business qualities, decrees on guiding the Law on supporting small and medium enterprises, the law on planning and construction and the law on securities (amended), etc. By the end of the forth quarter of 2018, it is required to complete the proposal on building a competitive transport market, credit mechanism and credit guarantee, a regulations on joint coordinating among land use rights, house/workshop lease or sale contracts, temporary residence certification, electricity and water supply contracts and telecommunication services, etc.