In order for private enterprises to break through: A barrier-free track is essential

	"Bottlenecks " of private airline businesses
	Can Special Economic Zone be managed by private companies?
	Expansion Of Private enterprises and State owned enterprises: What is the Difference?

Enterprises need to learn and exploit new regulations in the FTAs to closely link with each other, creating counterbalance as well as power resonance. Photo: Xuan Thao.

New resources need to be found

From an enterprise perspective, Mr. Pham Dinh Doan, Chairman of Phu Thai Group said that Vietnam's economy had changed markedly, many large private enterprises had better conditions to develop than State-owned enterprises. However, looking at the number of businesses that have stopped working, we found that there were still a large number of small and medium-sized private enterprises that could not survive due to lack of support. Generally, Vietnamese enterprises had not many resources, especially when the resources from national ones were largely in state-owned enterprises. The total capital managed by the state-owned enterprises was many times higher than that of private ones. Therefore, institutions and resources for private enterprises were still only necessary and sufficient conditions; the most important thing was how to implement them. With the momentum of economic development as in the past few years, it was necessary to have more attention and a separate mechanism for private businesses to make their breakthroughs.

Also, according to the Chairman of Phu Thai Group, Vietnamese private enterprises had more flexibility than state-owned ones in using national resources. In the general picture of economic development, the resources from private enterprises were backed by the national resources. However, those resources could also be exhausted, so whether the growth quality of the private enterprises could be sustained in competition with domestic and foreign enterprises was a question to be answered. Because in the future, if Vietnam could not find new models, formulas or ways to access new resources, it would be very difficult for Vietnamese enterprises in general, and especially for private enterprises in particular, in the context of high competition and dramatic changes in economic scenarios.

“If we do not find new resources, take a short cut, apply new technologies, conduct sharing within the economy to have a new way of doing business... it will be definitely difficult. From the Government side, it is necessary to create a favorable business environment for enterprises to develop. And businesses need to improve their management capacity, product quality to improve their competitiveness," Mr. Doan stressed.

Reform is needed from the both sides

Proposing solutions for private enterprises to make breakthroughs, Dr. Phan Huu Thang, the former Director of Foreign Investment Department (Ministry of Planning and Investment) said that although the administrative reforms had reduced and the procedures had been more convenient, there were still many procedures that limit the development of private businesses. Therefore, in order for private enterprises to “break through”, the quality of state management at all levels, sectors and regions must have a real "breakthrough". At the same time, for private enterprises to "break out", they needed to improve their quality; the state also needed to create conditions for businesses and most importantly, businesses needed to effectively exploit external capital, especially FDI.

According to experts, besides the important role of the institutional reform, the administrative procedures and the business environment, one of the factors creating breakthroughs is capital. Meanwhile, the capital comes mainly from the private sector. Therefore, creating the most favorable conditions for the private enterprises to operate is a key and sustainable solution. However, reforms conducted by the government alone are not enough; businesses also need to reform, so they will not be removed from the game. The private enterprises also need to improve their own competitiveness proactively by actively self-innovating, and seizing opportunities from economic restructuring ...

Mr. Lam Minh Chanh, Chairman of the Business School BizUni, co-founder of the Management and Start-up Community, said that private enterprises contribute greatly to the economic development of the country. At the same time, we should not only rely on equitization of state-owned enterprises, because the private economy is the main driving force. It would surely not be good if the state only allocated the best resources to the state economy and overlooked the private economy and enterprises. When considering the private economy and enterprise as the main engine, it must reduce the contribution of the state economy sector, otherwise it would be very difficult to develop especially when the private economy was not treated fairly.

Proposing solutions for private enterprises to break out in the coming time, Mr. Nguyen Minh Phong - an economic expert said that in the current integration context, large and small enterprises that want to realize the advantages need to link with each other, seek to get support and incentives for mutual benefit to develop. Accordingly, associations and businesses need to understand and exploit new regulations in the FTAs to closely link with each other, creating counterbalance as well as power resonance in competition with foreign businesses. Small businesses should not compete directly, but should choose niche markets, or participate in the chain of large enterprises to gradually upgrade their technologies, standardize technical regulations in accordance with general value chain.

“Giving wings” to private enterprises VCN - From XII Congress of the Communist Party, the private sector, including private enterprises, has been ...

According to Mr. Phan Duc Hieu, Deputy Director of the Central Institute for Economic Management (CIEM), if the business environment did not have a drastic breakthrough and more real innovation, it would be very difficult for businesses to develop. Although many regulatory agencies had had reforms, they could not be satisfied with the results, but continued to seek new ways to facilitate businesses. Therefore, if anyone who works in these positions did not change the mindset to serve the business best, he should not hold these positions. Enterprises needed a good, barrier-free track, and they would know how to accelerate and reach their destination.