Vietnam Business Development Forum focuses on private sector growth (Source: VNA)

Hanoi (VNA) – The Ministry of Planning and Investment held the 2017 Vietnam Business Development Forum in Hanoi on June 22 to discuss how to develop the private economic sector robustly.

Speaking at the event, Director of the ministry’s Business Development Department Ho Sy Hung said the private economic sector contributes 43.22 percent to the gross domestic product (GDP), accounts for 39 percent of the total social investment, and generates 11.9 percent of all jobs.

Meanwhile, the State economic sector contributes 28.69 percent to the GDP.

In terms of capital scale, 94.8 percent of firms nationwide are small- and medium-sized ones with fixed assets averaged 7-8 billion VND (304,000 – 347,000 USD) each, which was not higher during 2011-2015, making it hard for them to join the domestic value chain, according to the department.

In 2016, the number of newly-established enterprises nationwide hit a new record with more than 110,000, up 16 percent annually. In the first five months of 2017, additional 50,534 firms were established which contributed around 1.2 quadrillion VND to the economy.

On the labour scale, up to 97.7 percent of firms are small and medium-sized enterprises.

Dau Anh Tuan, head of the Vietnam Chamber of Commerce and Industry’s Department of Legal Affairs, said major obstacles to businesses are consumer base, market, capital, labour, administrative procedures, land, unofficial fees and unsafe legal environment.

Economist Vu Dinh Anh underscored the importance of creating a fair business environment by not discriminating against the private economic sector and foreign-invested firms.

Participants looked into ways to improve Vietnam’s stature on the back of research, innovation and development of high-quality products.-VNA