Private sector has big role in HCM City’s economic development hinh anh 1Secretary of the municipal Party Committee Nguyen Thien Nhan (R) at the Vietnam Private Sector Economic Forum in Hanoi on May 2

Hanoi (VNA) – Seeing the important role of the private sector to local development, Ho Chi Minh City will work to attract more private investment to carry out smart urban area projects and branch out Industry 4.0 services, said Secretary of the municipal Party Committee Nguyen Thien Nhan.

The city is home to 372,000 private firms, contributing 63 percent of local gross domestic product (GDP) and more than 41 percent of State budget collection, he said at the Vietnam Private Sector Economic Forum in Hanoi on May 2.

However, he said companies face many challenges when investing in the city, including complicated administrative and State management procedures and confusing laws.

He described capital shortage as main reason for low labour productivity, saying average investment in one worker in Vietnam is 20 times less than Japan and 6.5 times less than Malaysia.

Besides, tens of thousands of enterprises in the city have no access to necessary infrastructure and services, making them inefficient.

Nhan said Vietnam needs strong policies to back the development of IT and science and technology enterprises, driving the knowledge economy and service production, while authorities must see corporations’ satisfaction as an important indicator to evaluate the efficiency of administrative reforms.

As for private firms themselves, they should work with training establishments if they want high-quality human resources, he stated.

He expressed his belief that following the forum, the Government will outline rational policies to fit the demands of companies, and localities must join businesses’ efforts to develop the nation’s economy.-VNA