PM: Private enterprises strive to contribute 50-60 pct of GDP


Private enterprises should continuously reform and increase competitiveness to contribute 50-60 percent of the national gross domestic product GDP), Prime Minister Nguyen Xuan Phuc said while addressing the second Vietnam Private Sector Forum held in Hanoi on July 31.

He reiterated the target of building a facilitating Government which accompanies businesses, and protects all legitimate rights and interests of investors, in accordance with principles of the World Trade Organisation, bilateral agreements and the Government’s commitments.

The PM suggested focusing on the fields of global demand, such as agriculture, food, consumer products, and tourism instead of just concentrating on serving domestic companies as suppliers or subcontractors with low added value.

It is necessary to expand international cooperation in trade, technological transfer, production and sales of products to the overseas markets, he recommended. 

The Government pledges to create a transparent, safe and friendly business environment as well as create all favourable conditions for businesses, especially private and small-and medium-sized ones and startups to develop, he affirmed.

He asked ministries and relevant departments to hold periodical dialogues with businesses to promptly remove their bottlenecks.

The PM directed localities to prepare all necessary conditions such as land and particular policies to enable investors to do long-term business.

He hoped private enterprises will embrace links and anticipate risks and difficulties to promote innovation and actively engage in international integration.

The second Vietnam Private Sector Forum was organised by the Vietnam Young Entrepreneurs‘ Association and the Mekong Business Initiative.

A survey launched before the forum opened indicates that 65 percent of businesses questioned expressed their hope for a government of action.

The year 2016 marks a great stride for the private sector with the establishment of 110,000 businesses.

According to the Ministry of Planning and Investment, in the first seven months of 2017, the country had more 72,953 new firms with a total registered capital of 690.7 trillion VND (30.39 billion USD), a respective year-on-year rise of 13.8 percent and 39 percent.

Since 2010, the private sector has contributed over 43 percent of the GDP. The proportion of the State economic and foreign direct investment (FDI) sectors is 28.9 percent and 18 percent, respectively.


Photo: CBR Investment AG