return icon Vietnamnet.vn

Institutional reforms needed to support enterprises' development

Phan Duc Hieu, deputy director-general of the Central Institute for Economic Management under the Ministry of Planning and Investment, talks about young Vietnamese enterprises’ need for Government support.

{keywords}
Phan Duc Hieu, deputy director-general of the Central Institute for Economic Management. — Photo mpi.gov.vn

What’s the role of the national institution in the course of enterprise development?

Reality has shown that if the national economic institution is of low quality, it may have negative impacts on enterprises’ production or business activities. As a result it weakens the competitiveness of the national economy. It will also increase production costs, create more risks and limit workers’ creativity and their dynamism. It will also limit or distort the competitiveness of enterprises’ competitiveness.

When enterprises face difficulties, it means the national economy doesn’t have sufficient resources to invest in them and enable them to achieve high economic growth. In other words, it has negative impacts on mobilising resources and using them efficiently. As a result, it weakens the national economy’s competitiveness and productivity. Consequently, it will lower national economic growth.

Do you have any comments about ongoing national economic reforms?

In the course of carrying out the National Socio-Economic Development Strategy from 2011-2020, the Party, the National Assembly and the Government have launched multiple economic reform programmes and have provided favourable conditions for enterprises to run their businesses and cut production expenses. As a result, the quality of the business environment and competitiveness of the national economy has improved quite a lot and has gained high praise from the international community and the enterprise themselves.

At a recent World Economic Forum (WEF) event held in Vietnạm, all participants praised Vietnam’s major achievements in the Global Competitive Index (GCI). Results from a recent survey conducted by the Vietnam Chamber of Commerce show that the percentage of Vietnamese enterprises who find difficulties in applying for conditional business permits in 2019 reduced to 34 per cent from 42 per cent in 2018.

Are you happy with the ongoing national economic reforms?

The national economic reforms have not yet met the expectations of both enterprises and the people. The quality of our institutional reforms is still at a lower level compared with many other countries in the region and the world. Vietnam’s competitiveness in the Fourth Industrial Revolution ranks sixth among the 10 ASEAN member nations, after Singapore, Malaysia, Thailand, Indonesia and the Philippines. Though the rating of our business environment has improved, there is still a long way for Vietnam to go to become one of the four leading ASEAN member states.

What should Vietnam do improve the quality of its economic reforms?

To build a high-quality economic institution and to become one of the leading members of ASEAN, Vietnam has three important things to do over the next 10 years.

First, Vietnam has to complete its institution – the most important element among the country’s strategic breakthroughs in the upcoming 10 years.

Second, Vietnam should change its goal “to complete and improve the quality of its institution" to “building a high quality institution”. Such a change in the wording means that Vietnam needs to continue its reform process to have an institution which is based on the principle of “management” not “promotion”, development and high labour productivity.

Finally, it is important to define what are the main criteria of a market economy and to ensure enterprises are given the right to decide what they should do and their production strategies.

In other words, the institution must facilitate conditions for enterprises to join or withdraw from the market at their own will while protecting their legal rights and interests in accordance with the law. VNS/Hanoimoi

Vietnam aims to have 2,000 supporting businesses

Vietnam aims to have 2,000 supporting businesses

Prime Minister Nguyen Xuan Phuc has signed a resolution to promote the development of support industries with the aim of having 2,000 enterprises capable of directly supplying parts for multinational corporations in ten years.  

Essential guidance beefing up domestic supporting industries

Essential guidance beefing up domestic supporting industries

While highly appreciating the solutions and policies set forth in the government’s Resolution No.115/NQ-CP on the development of supporting industries, Truong Thi Chi Binh, 

MORE NEWS

Hanoi looks to develop satellite cities

Hanoi is planning to develop satellite urban areas as part of an effort to widen local space and ease pressure from overcrowding in the inner city.

Film director Tran Van Thuy wins Grand Prize of Bui Xuan Phai Awards

Film director Tran Van Thuy won the Grand Prize of the 15th Bui Xuan Phai – For Love of Hanoi Awards during a ceremony held at the headquarters of the Vietnam News Agency (VNA) in Hanoi on October 6.

Vietnam sends 11 workers to WorldSkills Competition 2022

Eleven Vietnamese workers will participate in the WorldSkills Competition 2022 Special Edition which is being held in Europe and East Asia from September 30 to November 28, according to the Directorate of Vocational Education and Training.

VN underlines respect for territorial integrity in response to Ukraine-Russia conflict

Vietnam closely follows the developments surrounding the Ukraine-Russia conflict, spokesperson for the Ministry of Foreign Affairs Le Thi Thu Hang said during a regular press briefing in Hanoi on October 6.

VIETNAM NEWS HEADLINES OCTOBER 6

HCM City to be next destination of Italian Film Festival 2022

2023 AFF Club Championship schedule, structure announced

The 2023 ASEAN Football Federation (AFF) Club Championship will start on September 27 2023, and end on May 15, 2024, the AFF Competition Committee announced at an online meeting on Monday.

HCM City’s dengue fever deaths highest in decade

HCMC recorded some 25 deaths due to dengue by October 2, the highest in a decade, according to the HCMC Center for Disease Control.

Hospitality providers in Hanoi Old Quarter revive

Hospitality providers in Hanoi’s Old Quarter have been gradually recovering from the COVID-19 pandemic. Since March 15, most of them have so far been brought back to life.

After discovery of fake VietGAP-certification, 12 units under probe

After local media reported about vegetables with counterfeited VietGAP certificates, the Ministry of Agriculture and Rural Development (MARD) asked for a review of 12 certification units and threatened to strictly punish any violators.

Another three Vietnamese digital platforms qualify for being popularized

Vietnam is expected to maintain its seventh place in the number of new app downloads globally.

Foreign travel website suggests 10 best things when visiting Vietnam

Kayaking in the waters of picturesque Cat Ba island and taking a food tour to sample delicacies around Ho Chi Minh City are among the 10 best things to do in Vietnam, according to UK-based travel website Time Out.

Vietnam’s coconut kingdom protects organic coconut areas by biological methods

When the trend of consuming organic products is increasingly popular, the development of organic material sources has become an urgent requirement. Protecting these sources has become a great concern of producers in many countries around the world.

Electronics industry capacity must keep up with increased investment

Vietnam needs policies to enable the electronics industry to ready its supply chain as the country becomes ever more attractive for investment, Deputy Director of the Industry Agency under the Ministry of Industry and Trade Pham Tuan Anh said.

VN central bank shifts up interest rates to combat US Fed adjustments

After the State Bank of Vietnam implemented the new operational interest rate on September 23, all joint-stock commercial banks, with the exception of state-owned ones, have adjusted the deposit interest rate for most terms.
back_to_top