Prime Minister Nguyen Xuan Phuc praised the significant success of the private economic sector, saying it represented 96.7 per cent of the country’s 500,000 enterprises. PM Phuc spoke in Ha Noi at a Saturday policy dialogue with 14 chairmen and general directors of leading private enterprises.

Attending the event were also leaders of the Government Office, Ministry of Finance, Ministry of Planning and Investment, and the members of the PM’s Economic Advisory Group, which was established in July.

Phuc applauded the production and business achievements of the firms, describing them as important contributions to the economy.

The cabinet leader called for solutions to spur business development in line with the Party’s resolution on the importance of the private sector as a driving force in the socialist-oriented market economy.

The PM said he wants business leaders to speak frankly about the difficulties they encounter.

"Businesses’ voice will help address national issues. We want to listen to the private sector’s recommendations to alleviate difficulties and create the best possible environment to nurture the private economic sector’s development," he said.

The Government leader highlighted the recent substantial progress achieved by the private sector, but also pointed to a lack of large-scale private companies with most Vietnamese private enterprises being small-, medium- and micro-sized firms.

Phuc said the Government would collect feedback from the companies to revamp relevant policies, improve the business climate, and remove bottlenecks.

According to the Business Development Department under the Ministry of Planning and Investment, the private economic sector contributes 43.22 per cent to the country’s gross domestic product (GDP), accounts for 39 per cent of the total social investment, and generates 11.9 per cent of all jobs. Meanwhile, the State economic sector contributes 28.69 per cent to the GDP.

In 2016, the number of newly-established enterprises nationwide hit a new record with more than 110,000, up 16 per cent annually. In the first nine months of 2017, an additional 94,000 firms were established with a combined registered capital of VND900 trillion (US$39.6 billion).

At the second Viet Nam Private Sector Forum held in Ha Noi two months ago by the Viet Nam Young Entrepreneurs’ Association and the Mekong Business Initiative, the PM said private enterprises should continuously reform and increase competitiveness to contribute 50-60 per cent of the national GDP in the future.

In a recent interview with the Viietnam News Agency, Phan Duc Hieu, deputy director of the Central Institute for Economic Management, said Viet Nam now has more than 4,000 business procedures, creating inexplicable barriers for businesses. More than 50 per cent need to be abolished as soon as possible, Hieu said.

Economist Le Duy Binh told Vietnam News Agency that what the private sector needed the most was neither support nor incentives but a transparent, fair and healthy business law system, together with a simple and convenient administrative system. — VNS