Key participants at the Vietnam Business Forum called for more specific and practical solutions and measures to support the development of private, small and medium-sized, and foreign-direct-investment (FDI) enterprises.

Vu Tien Loc, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), said the private economic sector contributes nearly 50 percent to the national gross domestic product.

In the long term, the private sector must be Vietnam’s key growth driver to ensure the economy’s self-sufficiency and effective connections between the FDI sector and the local economy, Loc continued.

To achieve that goal, representatives of the business community recommended the Government create action plans to encourage the development of the private economy.

Virginia B. Foote, Co-Chairperson of the VBF and Chairwoman of the United States-Vietnam Trade Council, appreciated the efforts made by the Vietnamese Government and ministries to support the formation and development of the business community.

She underlined that despite positive changes in the new Investment Law, there are still 267 sectors requiring FDI enterprises to apply for permission to conduct business.

It seems to be a measure to protect local private enterprises, but according to Foote, in many countries the policy has yet to produce more beneficial results than open policies.

Allowing private companies, especially those with access to capital and human resources, to deeply integrate and operate on a fair playing ground with FDI enterprises will benefit Vietnam’s economy, according to Foote.

At the forum, representatives of associations, FDI enterprises and international organisations agreed that Vietnam’s policies have not been adequately effective in promoting the development of advantageous fields in Vietnam.

Public investment reform, the equitisation of State-owned enterprises, streamlining administrative procedures and other areas need concerted efforts, according to participants.-VNA