International economic integration has expanded to Viet Nam so the development of domestic resources, including our private enterprises, is required urgently.

Minister of Planning and Investment Bui Quang Vinh spoke to the Vietnam News Agency about those issues.

This year is being considered as the year of international economic integration. What is your comment on the integration process in Viet Nam?

Minister of Planning and Investment Bui Quang Vinh. — VNS Photo

Strong international integration will create a larger development space and market for Viet Nam. We will have access to more export markets, with higher preferential, compared with the present.

It will also help promote development of domestic production and create more jobs. Products with Vietnamese brands will also become popular globally.

Over past few years, we have implemented reforms in economic institutions and the investment environment to make it more suitable and in accordance with international regulations.

However, the integration process has also brought big challenges for the domestic economy.

Viet Nam's business environment still faces many difficulties and the management system is not ready yet to take on those challenges.

I am worried about enterprises in Viet Nam as they do not have enough information about economic integrating into the global economy. We have had negotiations on trade agreements and strong economic integration, but the state offices have not provided enough information about these issues to the local enterprises.

The most important thing at present is that the state offices should step up propaganda on the integration process and provide necessary information about trade agreements. But the state offices should also help the local enterprises understand the challenges posed by integration and come up with solutions that help tap into the full advantages stemming from that integration.

The private economic sector has fuelled local economic growth, but reflects weak development, compared with the strong development of foreign invested enterprises. What is your view on this situation?

A self-controlled economy must have strong local enterprises and only Viet Nam's enterprises will build Vietnamese brands. During the past years, Vietnamese enterprises have had weak development and the scale of the enterprises has been mainly small, which has led to a limitation in resources.

In 2014, foreign-invested enterprises accounted for 68 per cent the total national export value of US$150 billion. That successfully attracted foreign investment to the local economy, but we need to evaluate the current situation.

Foreign invested enterprises in Viet Nam need the local enterprises for their product supply chain.

We have invited foreign invested enterprises to Viet Nam to create more jobs and more products, leading to local economic growth. Meanwhile, foreign investment in Viet Nam has brought more opportunities by transferring and applying modern technologies for production to the local enterprises.

I admit that local enterprises are not strong enough and have failed to apply technology to production effectively. However, in the long term, we should focus on the development of local enterprises, especially private firms.

This year, Viet Nam should formulate more policies to solve the difficulties of local enterprises, including the development of small and medium-sized enterprises and private entrepreneurs.

Private entrepreneurs must form the foundation of our economy and have the power to contribute to the growth and stability of Viet Nam's economy in the future.

What positive effects will amended laws have on enterprises and investments being made in domestic enterprises this year?

The two amended laws will become effective from July 1, based on specific guiding decrees and circulars. If implemented well, these decrees and circulars will partially create favourable conditions for the people and enterprises. However, to create a new investment wave or new opportunities on development, the enterprises need other policies and not only these two amended laws.

They will need policies on providing credit, resolving bad debts and improving the investment and business environment. If we synchronise these solutions, we will create more investment and opportunities for development. Anyway, the two laws are only basic in nature.

The enterprises, including private and foreign invested firms, have welcomed the two amended laws and highly appreciate the role they will play. I believe that they will further facilitate domestic economic development.

What have the state offices done to support the development of private enterprises?

The Ministry of Planning and Investment has held international seminars on the development of private enterprises, including setting up the Viet Nam Development Partnership Forum (VDPF).

I think one policy is not enough. We need many different policies to support the development of private enterprises.

The amendment of the two laws is one of the solutions used for creating an important foundation for the local private economic sector and for approaching the market easily and efficiently.

I think one important solution should be implemented right now, which is to build centres for developing talent in business and investment. This solution is popular across the world. I hope the centres created for training and development help businessmen in creating new investment ideas.

The second solution is to develop capital sources for small and medium sized enterprises (SMEs). The ministry has set up a fund for SMEs with a total capital of VND500 billion this year and plans to add more capital to that fund.

By the end of this year, the ministry will get approval from the National Assembly for laws governing SMEs and for supporting the industry better.

I believe those policies will create a solid foundation for the establishment and development of private enterprises and favourable conditions for enterprise development.

We should provide information about the challenges of the international economic integration process, and extend support for building the brands of enterprises.

The state should also consider opening centres for development of skilled workers. Policies for extending credit to private enterprises should also be implemented more efficiently. — VNS