The Government expects the number of businesses in Vietnam to rise to one million by 2020, and the private sector to account for 48-49% of the country’s gross domestic product (GDP).

The targets are included in a draft Government resolution on backing growth of domestic enterprises, which was discussed at a two-day cabinet meeting that ended in Hanoi on May 5.

The number of operational enterprises had reached around 513,000 as of last year as shown in a report released by the Vietnam Chamber of Commerce and Industry (VCCI) last month.

Under the draft resolution, investments of individuals and private firms are projected to make up 49% of the nation’s total, and 30-35% of total domestic enterprises come up with innovations a year.     

Prime Minister Nguyen Xuan Phuc told the Government Office to coordinate with the Ministry of Planning and Investment and VCCI to improve and complete the draft resolution and submit it to the Prime Minster for signing.

Phuc stressed that the resolution must convey the Government’s message of removing hindrances and creating favorable conditions for enterprises to grow.  

The draft resolution should guarantee that all enterprises have equal access to capital, natural resources, land, markets and business opportunities. Sub-licenses and inappropriate fees and charges should be eliminated.

Leaders of provinces and cities should organize quarterly dialogues with businesses, and set up hotlines and answer firms’ queries on their local portals. Management agencies are told to conduct joint inspections into enterprises but the number of such inspections must not exceed two at a single business a year.

The Ministry of Finance is tasked with coordinating with the Ministry of Transport and relevant localities to review road tolls and proposes adjustments to help firms cut costs. Civil servants who cause troubles for businesses should be promptly punished.

According to the Government Office, cabinet members and the chairman of VCCI have thrown their weight behind the draft resolution as it points out tasks that must be done to help enterprises ride out difficulties. It is expected to regain confidence among enterprises, which are the main driver of economic growth.

Govt resolved to lift hindrances to business

The Government Office is working with ministries and agencies to complete a government resolution to solve problems faced by enterprises as ordered by Prime Minister Nguyen Xuan Phuc.

Mai Tien Dung, Minister and Chairman of the Government Office, told a monthly news conference in Hanoi on May 5 that the Government had spent much time on May 5 discussing the draft resolution designed to back business development, and looking into those problems voiced by enterprises at a meeting between the Prime Minister and local and foreign business executives in HCMC late last month.

An important goal of the draft resolution is to regain the confidence of the business community, Dung said at the news conference held after the Government’s two-day meeting.

According to Dung, the draft resolution reflects the core message of the Government and the Prime Minister that problems must be solved and good conditions must be created for enterprises to grow.

Ministers, heads of agencies and provincial chairpersons are responsible for solving difficulties and handling proposals of enterprises, Dung said.

The Prime Minister looks to build a friendly, transparent and efficient government as well as get tough on corruption and wastefulness at State agencies.

Dung said the Prime Minister wants to change the way the Government is run from issuing administrative orders to serving enterprises and people, and consider their satisfaction as a measure of the efficiency of the Government.

The Government will focus more on enhancing its management role as well as improving institutions, mechanisms and policies with the participation of residents, and eliminating the “ask-and-give” mechanism.

“The ask-and-give mechanism does exist and the Government is determined to remove it,” Dung said.

The Government will boost decentralization and let ministries, agencies and localities manage the fields for which they are responsible. They cannot pass the ball to the Government and the Prime Minister.

Cabinet members should enhance responsibility and cooperation in solving issues, and improving policies and zoning plans.

“Cabinet members have thrown support behind the major orientations set out by the Government,” Dung said.

SGT