Workshop seeks to improve private sector’s capacity

Illustrative photo. (Source: congthuong.vn)

Hanoi (VNA) – A workshop took place in Hanoi on October 19 to exchange and share results of a report on “Strengthening the Capacity of Vietnam’s Private Sector in the New Stage” compiled by the Central Institute for Economic Management (CIEM).

The event was held by CIEM within the framework of the Australia Supports Economic Reform in Vietnam (Aus4Reform) programme.

Speaking at the event, Dr. Nguyen Thi Luyen, deputy head of the CIEM’s department for business reform and development studies, said over the last five years, the number of private enterprises listed in Vietnam’s 500 largest companies is on the rise. Six private firms have even  made their way into the Asian and global lists, she noted.

Luyen pointed out that the private sector plays an increasingly significant part in the economy as it contributed 40 percent of Vietnam’s GDP. The country had 647,000 private enterprises in 2019, doubling 2011’s figure. Their total registered capital surged nearly 3.5 fold to 24.02 quadrillion VND in 2019 from over 6.87 quadrillion VND in 2011.

A workshop takes place in Hanoi on October 19 to exchange and share results of a report on “Strengthening the Capacity of Vietnam’s Private Sector in the New Stage.” (Screenphoto)

She, however, voiced concern over the private sector’s low competitiveness, weak internal capacity and slowness to change. A majority of private firms in Vietnam are of macro, small and medium sizes, she said, adding that most of them have limited capacity in terms of technology, management, business connectivity and cooperation, and joining global and regional supply chain.

To improve the capacity of the private sector, Dr. Luyen urged the Government to focus on measures to support enterprises to restore production and minimise negative impacts of COVID-19./.

VNA