Prime Minister Nguyen Xuan Phuc visits a kiosk on the sidelines of a conference with enterprises on Monday. — VNA/VNS Photo Thong Nhat

Prime Minister Nguyen Xuan Phuc has urged local firms to point out the difficulties their operations were facing, pledging the Government’s continued efforts to improve the business climate and stimulate business development.

Speaking at a meeting on Monday, Phuc said the business community was the most important driving force behind the country’s economic growth.

“This would not be a strong and prosperous nation without its powerful business community,” Phuc said, adding that the Government was willing to listen to what firms had to say and take measures to promote sustainable business development.

Phuc said Vietnamese firms still faced a number of difficulties, shown by the fact that thousands of firms were being dissolved, shutting down or going bankrupt.

“Removing these difficulties is a pressing issue to ensure strong and sustainable growth,” Phuc said.

At the conference, Phuc also said the global economic slowdown, trade wars and rapid international integration and the Fourth Industrial Revolution (Industry 4.0) were posing significant challenges to businesses.

Phuc said it was important to make breakthroughs and encourage firms to apply technology and innovation to engage in the global value chain.

A Government resolution would be issued soon, aiming to remove difficulties for businesses, Phuc said.

Phuc had his first dialogue with businesses in 2016 right after taking office. After that meeting, the Government issued Resolution 35 on supporting and developing businesses.

Chairman of the Viet Nam Chamber of Commerce and Industry Vu Tien Loc said it was necessary for Viet Nam to adopt a circular economy to bring more economic value.

Loc said the circular economy was expected to create US$4.5 trillion for the global economy by 2030.

Viet Nam first needed to develop a legal framework for a circular economy as well as encourage firms to prepare, he said.

Le Tien Truong, general director of the Viet Nam National Textile and Garment Group, said the Government should adopt policies such as tax incentives to encourage firms to transform towards cleaner production and protect the environment.

Deputy Prime Minister Vu Duc Dam agreed, saying that policies to encourage innovation and the application of high technology to protect the environment for sustainable development were indispensable.

According to UNDP Assistant Resident Representative Dao Xuan Lai, the Government needed to create a transparent and fair environment for all types of businesses.

Resources should be focused on enhancing investment efficiency and improving productivity in important sectors such as land planning and management, energy, construction and transportation, Lai said.

Lai said businesses should also focus on social development and corporate responsibility to reduce their impacts on the environment and people's health.

Minister of Planning and Investment Nguyen Chi Dung said the technological capacity of Vietnamese firms remained limited and many had not paid adequate attention to research and development.

In addition, many had failed to improve connectivity and competitiveness to participate in the regional and global value chains, Dung said, adding that the majority lacked a long-term strategy and ignored corporate responsibility.

Vietnamese firms had yet to form links to create a community for common development course, he said.

Dung said that Viet Nam needed to adopt policies to encourage the development of large enterprises and develop strategic products to stamp Viet Nam's brand on the international market.

Industry 4.0 would create an opportunity for Vietnamese firms to restructure towards sustainability and creativity, he said, adding a focus should also be placed on improving human resources.

Dung also urged firms to renovate their business models, improve management capacity, enhance productivity and product quality, and focus on research and development, as well as applying new technology.

The conference was part of the Government's efforts to encourage business development to reach the goal of having at least one million firms by 2020.

About 136,000 firms were established in 2019 with total registered capital of around VND1.7 quadrillion ($73 billion), bringing the total number of firms to 760,000. — VNS