Vietnam Business Development Forum focuses on private sector growth (Source: VNA) Hanoi (VNA) – The Ministry of Planning and Investment held the 2017 VietnamBusiness Development Forum in Hanoi on June 22 to discuss how to develop the privateeconomic sector robustly.
Speakingat the event, Director of the ministry’s Business Development Department Ho SyHung said the private economic sector contributes 43.22 percent to the grossdomestic 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.
Interms of capital scale, 94.8 percent of firms nationwide are small- andmedium-sized ones with fixed assets averaged 7-8 billion VND (304,000 – 347,000USD) each, which was not higher during 2011-2015, making it hard for them tojoin the domestic value chain, according to the department.
In2016, the number of newly-established enterprises nationwide hit a new recordwith 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 quadrillionVND to the economy.
Onthe labour scale, up to 97.7 percent of firms are small and medium-sized enterprises.
DauAnh Tuan, head of the Vietnam Chamber of Commerce and Industry’s Department ofLegal Affairs, said major obstacles to businesses are consumer base, market,capital, labour, administrative procedures, land, unofficial fees and unsafelegal environment.
EconomistVu Dinh Anh underscored the importance of creating a fair business environmentby not discriminating against the private economic sector and foreign-investedfirms.
Participantslooked into ways to improve Vietnam’s stature on the back of research,innovation and development of high-quality products.-VNA
VNA
