The private sector currently contributes over 40 percent of the total GDP (Photo: VNA) Hanoi (VNA) – Chairman of the Vietnam Chamber ofCommerce and Industry (VCCI) Vu Tien Loc has emphasised the need to attach dueimportance to the role of business households so as to fuel economic growth withgreater strength.
He told Vietnam News Agency that the privatesector has been mentioned with increasing frequency in many resolutions of theParty Central Committee. Recent statistics show that it contributes over 40percent of the total gross domestic product (GDP), even higher thancontributions by state-owned and foreign-invested enterprises.
Most countries around the world divide economicsectors into private and public ones, and the private sector consists of bothdomestic- and foreign-invested companies. Accordingly, the private sector nowmakes up over 60 percent of Vietnam’s GDP.
Therefore, it’s time to redefine the private businesssector, which should be recognised as the main growth engine instead of onlyone of the important driving forces of the economy like in previous perspectives,Loc said.
In the long run, the private sector looks likelyto develop with even greater strength to record the fastest growth in theeconomy, hence it is quite reasonable to set the target that this sector willaccount for 50-60 percent of the GDP in the near future.
Meanwhile, of the over 40 percent contributionto the GDP by the private sector, only 8 percent is from officially-recognisedbusinesses, while the remainder is from the 5.2 million business households,which is a matter worthy of consideration.
Loc said authorities have repeatedly called forbusiness households to be transformed into businesses, but both businesshouseholds and grassroots authorities seem not to be interested in this issue.
He pointed out that the current definition of businesshouseholds is not in line with international practices as business householdsthemselves are already enterprises, noting that if this definition is changed, Vietnam’starget of having 1 million firms operating effectively by 2020 is entirelyachievable.
The VCCI chairman said authorities should havedue respect for business households, while creating optimal conditions for themto upgrade into enterprises, which will help enhance the growth quality inVietnam.–VNA
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